By Chao Deng
Asian stocks traded higher Tuesday, after expectations for
continued low interest rates helped U.S. and European markets stage
broad rallies overnight.
The Nikkei was up 1.1%, extending its sixth straight winning
session yesterday. Helping the region's stocks was a turn in
attention away from geopolitical issues toward a speech by U.S.
Federal Reserve Chairwoman Janet Yellen on Friday. On Monday, the
Dow gained 1.1%, after an index of U.S. home builder sentiment rose
more than expected in August.
"U.S. economic data--including the latest home builder sentiment
numbers--continue to support a strong equity market and a stronger
dollar; Japan shares, especially tech exporters, are simply
reflecting the more favorable currency market," said Yoshihiro
Okumura, general manager at Chibagin Asset Management.
The dollar was roughly unchanged at Yen102.59 compared with
Yen102.5 late Monday in New York. However, the pair may come under
pressure in coming weeks if Ms. Yellen signals that the U.S. isn't
in a rush to raise interest rates.
Investors in Japan are also looking to foreign trade data from
the country out Wednesday to move markets. They expect higher
exports and weaker imports to improve the country's trade
balance.
Australia's S&P/ASX 200 was up 0.6%, ahead of corporate
earnings of major firms like BHP Billiton Ltd. The company's
capital management plans could give the broader market a leg up.
Meanwhile, Toll Holdings jumped 5.8%, after cost-cutting measures
helped the firm's profit rise 5.7% to A$298.5 million for the full
fiscal year of 2014.
The Shanghai Composite Index ticked higher by 0.1% and Hong
Kong's Hang Seng also rose 0.2%, as investors watched for earnings
news. Bank of China, down 0.3%, is expected to report its earnings
today, giving investors a gauge of the banking sector's health.
Elsewhere, Singapore's Strait Times was up 0.2% and South
Korea's Kospi was up 0.8%.
--Bradford Frischkorn contributed to this article.
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