Investing.com - APAC markets are expected to open lower on Tuesday as investors anxiously await the Reserve Bank's decision on interest rates today.
ASX 200 Futures were down 0.1% by 9:00 am AEDT on Tuesday, indicating a weaker start.
US stocks recorded slight gains following last week's impressive rally as investors analyzed the latest earnings and economic data. Major indexes surged last week, fuelled by expectations that the Federal Reserve's interest rate hike cycle is nearing its conclusion.
The US dollar and Treasury yields experienced a modest boost, while oil prices rose slightly after Saudi Arabia and Russia confirmed plans to extend production cuts until the end of the year.
Information technology and healthcare sectors outperformed, while real estate and energy sectors fell by over 1%.
Dow Jones Industrial Average rose 34 points to 34095, the S&P 500 gained 0.2% to 4365, and the NASDAQ Composite added 0.3% to 13518.
In overnight commodity trades, Brent crude oil fell 2.3% to US$84.89 a barrel while gold rose 0.4% to US$1,992.65.
In local bond markets, the yield on Australian 2 Year government bonds fell to 4.34% while the 10 Year yield also dropped to 4.72%. US Treasury notes were down, with the 2 Year yield at 4.84% and the 10 Year yield at 4.57%.
The Australian dollar was trading at 64.88 US cents, down from the previous close of 65.11. Meanwhile, the US Dollar Index was at 105.3.
Chinese shares closed higher amid U.S. dollar weakness following Fed Chair Powell's dovish comments and recent lackluster U.S. economic data. Chinese equities could potentially see multi-month gains if the USD/CNH breaks down below 7.2675, according to Oanda analyst Kelvin Wong. Financial and software stocks led the gains. The benchmark Shanghai Composite Index rose 0.9% to 3058.41.
Hong Kong shares closed higher, driven by positive sentiment stemming from expectations that the Federal Reserve has concluded its interest rate hikes. The healthcare sector led the gains in the Hong Kong bourse. The benchmark Hang Seng Index closed 1.7% higher at 17966.59.
Japanese stocks ended higher, led by gains in electronics stocks, as concerns eased about borrowing costs following soft U.S. jobs data on Friday. The Nikkei Stock Average rose 2.4% to 32708.48.
Indian shares closed higher, tracking Asian peers and following Friday's rally on Wall Street. The benchmark Sensex rose 0.9% to 64958.69.
European stocks dropped, though Asia markets closed higher. The Stoxx Europe 600 fell 0.1%, the CAC 40 backtracked 0.4% and the DAX retreated 0.2%. Brent crude advanced 1.2% to $85.90 a barrel.
The FTSE 100 closed flat, outperforming struggling European markets. Aerospace manufacturer Melrose Industries was the session's best performer, rising 3.5% after its GKN (LON:GKN) Aerospace division signed a new deal potentially worth $5 billion.