Investing.com - Asian-Pacific share markets experienced a surge on Tuesday, following an extended rally in the US benchmarks overnight.
By 10:55 am AEST (12:55 am GMT) the Australian S&P/ASX 200, South Korean KOSPI 200, and Japanese Nikkei 225 indices saw increases of 0.6%, 1.7%, and 1.1% respectively.
American stocks continued to gain as investors nurtured hopes of rate cuts, stimulated by Friday's payrolls report, which suggested a slight slowdown in the labor market. The Dow Jones Industrial Average rose by 0.5% while the S&P 500 and the NASDAQ Composite advanced by 1% and 1.2% respectively. The technology sector spearheaded the gains, with NVIDIA Corporation (NASDAQ:NVDA) shares soaring by 3.8%.
However, individual stocks' performance was largely driven by earnings reports. Tyson Foods Inc (NYSE:TSN) saw a 5.7% drop after predicting a larger operating loss for its beef business, while Spirit Airlines Inc (NYSE:SAVE) plummeted by 9.7% after reporting a wider quarterly loss and lower revenue compared to the previous year.
In commodities, Brent crude oil declined by 0.9% to US$82.96 a barrel, while gold dipped 0.1% to US$2,301.74. In the bond markets, the yield on Australian 2-year government bonds fell to 4.09%, and the 10-year yield also decreased to 4.41%. US Treasury notes followed suit, with the 2-year yield at 4.82% and the 10-year yield at 4.51%.
Chinese stocks performed well in their first trading session following the Labor Day holidays. Market response was positive to the recent Politburo meeting, and investors are now awaiting further signals from the upcoming Third Plenum in July, which is expected to focus on policy goals. Major stocks such as Kweichow Moutai and BYD saw gains, while China Telecom and China Mobile experienced declines.
Hong Kong's Hang Seng Index closed 0.55% higher, driven by consumer-related stocks. The positive response in Asian markets was influenced by last week's U.S. jobs and services PMI data, which helped alleviate concerns surrounding stagflation and bolstered hopes for Fed rate cuts.
In contrast, Japan's markets remained closed for the Children’s Day public holiday.
Indian shares closed flat, with gains in bank stocks balancing losses in the consumer sector. Titan led the losses, with a 7.2% drop, while Kotak Mahindra Bank ended 5.0% higher following a 17% annual rise in its Q4 net profit.
European shares also saw a boost on Monday, with the Stoxx Europe 600 index, the CAC 40, and the DAX 40 gaining 0.5%, 0.5%, and 1.0% respectively. UK markets remained closed for the Early May bank holiday.