SYDNEY- Asian stocks were mostly higher on Tuesday, supported by a strong Wall Street close and investor optimism about corporate earnings, while the dollar held near a two-month top, aided by bets on a smaller US rate cut next month.
Oil prices are down about 3 percent after Israeli Prime Minister Benjamin Netanyahu reportedly told the United States that Israel is willing to strike Iranian military targets and not nuclear or oil ones, easing immediate concerns about supply disruptions.
The Nikkei rallied 1 percent to a three-week peak, having been closed on Monday for a holiday. MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.2 percent as gains in Taiwan and Australia were partly offset by a drop in Chinese markets.
China’s blue chips fell 0.4 percent, while Hong Kong’s Hang Seng index slipped 0.3 percent as a lack of new stimulus details from Beijing left investors wanting for more.
Local media reported that Beijing may raise an additional 6 trillion yuan ($850 billion) from Treasury bonds over three years to help bolster a sagging economy.
“China’s signal on policy stimulus prompted us to go modestly overweight, especially given depressed valuations. Details have been scant, so we could change our view if future announcements disappoint,” said analysts at BlackRock Investment Institute.
“We still like US stocks and the broad AI theme as corporate earnings growth expands beyond tech. Yet fears over stretched valuations can drive brief selloffs. This calls for considering global exposure where we see cheap valuations and potential catalysts.”
Overnight, the S&P 500 and Dow roared to record high closes, led by chip stocks after a 2.4 percent jump in AI darling Nvidia and a brisk start to the third-quarter earnings season with beats by JP Morgan and Wells Fargo
Other big banks including Citi Bank of America and Goldman Sachs will report quarterly results on Tuesday.
