Investing.com - Asian stocks ascended on Tuesday, echoing Wall Street's upbeat performance. Bonds also rallied, bolstered by the Federal Reserve's dovish comments. Meanwhile, oil prices saw a minor dip after Monday's surge, with the market's attention still focused on the conflict in the Middle East.
By 1:30pm AEST (3:30am GMT) The MSCI's index of Asia Pacific stocks outside Japan increased by 0.2%. Japan's benchmark Nikkei 225 climbed 2.4%, while Australia's S&P/ASX 200 rose for the fourth consecutive session, marking a 1.2% gain.
On Monday, top Fed officials suggested that the rising Treasury yields could deter the Fed from further rate hikes. This statement helped spark a rise in bond prices after these markets had been closed the previous day in the U.S. and Tokyo.
However, markets remained vigilant about the military clashes between Israel and the Palestinian Islamist group Hamas, following Hamas' unexpected attack on Saturday that resulted in hundreds of Israeli casualties.
In response to the attack, the Israeli military has mobilized an unprecedented 300,000 reservists and is implementing a total blockade on the Gaza Strip, leading to speculation about a potential ground assault.
The Hang Seng Index added 0.8% while China's benchmark CSI300 Index dipped 0.6%.
China's largest private property developer, Country Garden Holdings Company Ltd (HK:2007), issued a warning on Tuesday morning that it might fail to meet all its offshore payment obligations on time or within the relevant grace periods. This announcement added further pressure to China's distressed property sector.
After Monday's over 4% climb, oil prices eased. Brent crude fell 0.4% to $87.75 a barrel as of 0136 GMT, while U.S. West Texas Intermediate crude dipped 16 cents or 0.5% to $85.93 a barrel.
Spot gold rose by 2% to $1,864.69 per ounce, reaching a one-week high on Monday as investors sought safe havens.
The US dollar remained steady at 106.1.
Ten-year Treasury yields, which have been surging, fell to 4.627% at the open in Tokyo as bond prices rallied after Monday's holiday.