Investing.com - Australia is poised for a market lift today, propelled by the robust performance of US stocks. The upward trend comes despite escalating Treasury note yields that offer investors attractive long-term benefits. Despite this, risk-sensitive tech companies spearheaded the rally in the U.S. stock market.
A modestly positive forecast was signaled with ASX 200 Futures moving up 0.1% by 9:15am AEST on Tuesday.
Monday saw technology shares bolstering US stock indices even amid soaring treasury yields reaching their highest levels in over a decade.
The tech-dominated NASDAQ Composite rebounded from three consecutive weeks of losses to emerge as the best-performing major index with an increase of 1.6%. The S&P 500 also went up by 0.7%, while Dow Jones Industrial Average marginally fell around 37 points or about 0.1%.
Stocks have been recently feeling the heat due to surging bond yields but managed to hold steady against further yield spikes after some initial wavering during early trading hours.
In commodities, Brent crude oil experienced a slight dip losing about 0.4% to settle at US$84.43 per barrel while gold witnessed an increase of about 0.3% amounting to US$1,894 .55.
Yields on Australian government bonds showed an uptick; both 2-year and 10-year yields rose appreciably along with similar trends observed in their American counterparts - U.S treasury notes.
The Aussie dollar made strides forward ending at approximately $0.6415 compared to its previous close standing at $0.6402, while the US Dollar Index was at 95.18.
Among Asian markets – Chinese shares slipped after China's central bank cut interest rates by less than expected, causing financial and property sectors to decline. CITIC Securities Co Ltd (SS:600030) and China Vanke Co Ltd Class A (SZ:000002) fell 4.3% and 2.1% respectively while the Shanghai Composite fell 1.2%.
Hong Kong markets followed suit, closing lower following disappointing rate cuts announced by China's Central Bank. Orient Overseas International Ltd (HK:0316) Chow Tai Fook Jewellery Group Ltd (HK:1929), Xinyi Solar Holdings Ltd (HK:0968), and China Life Insurance Co Ltd (HK:2628) were all impacted negatively, with the Hang Seng finishing 1.7% lower.
Japanese shares closed higher, led predominantly by gains across tech & real estate domains, with the Nikkei 225 adding 0.3%.