Asian stocks followed Wall Street’s upward trend, while the Australian dollar remained stable after the central bank’s policy decision, which held few surprises.
The Reserve Bank of Australia (RBA) maintained rates at a 12-year high of 4.35%, as anticipated, but emphasized the need to remain vigilant against inflation risks.
Following the RBA’s decision, traders reduced expectations of a rate cut this year, though the Aussie dollar showed little change, last trading at $0.6612.
Calming political concerns in Europe contributed to the positive market sentiment on Tuesday, with the Euro Stoxx 50 rising 0.4% in premarket trading, recovering some of the steep losses from the previous week. FTSE futures also increased by 0.3%.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.6%, boosted by an overnight rally on Wall Street.
In Japan, the Nikkei rose 0.8%, and Australia’s S&P/ASX 200 climbed 0.9%, while Hong Kong’s Hang Seng dipped 0.1%.
On Wall Street, American stocks gained momentum after a slow start, driving the Nasdaq Composite and S&P 500 to record highs.
The Dow Jones Industrial Average increased by 0.5% to 38,778.10, the S&P 500 rose 0.8% to 5,473.23, and the Nasdaq Composite advanced 1% to 17,857.02.
In the bond market, the yield on 10-year Treasury bonds increased to 4.29% from 4.22% late on Friday.
