Pedestrians cross a path ahead of the Tokyo Stock Exchange (TSE), which is owned by Japan Exchange Group Inc. (JPX) will be managed, in Tokyo, Japan, on Thursday, October 29, 2020.
Kiyoshi Ota | Bloomberg via Getty Images
SINGAPORE – The markets in Asia and the Pacific would have traded higher on Tuesday after starting the week by struggling to make a profit in what some analysts described as a fragile environment.
In Australia, the standard ASX 200 jumped 0.8% in early trading, extending the progress of the previous session. The heavily weighted financial sub-index rose by 1.5% as major bank names rose. ANZ shares rose 2.02% and Commonwealth Bank added 1.65%.
Nikkei futures indicated that profits would start in Japan.
Tuesday’s session follows after European and US equities started the new week in a positive way, with the Dow Jones industrial average rising by about 150 points while the exchange of technology continued.
The overnight movements were “driven by cyclics and banks, a sign of optimism about the economic outlook and the impact of steeper yield curves,” said Rodrigo Catril, a senior foreign exchange strategist at National Australia Bank.
Investors will watch this week as the U.S. House of Representatives plans to pass a $ 1.9 billion bill to alleviate the coronavirus to get new aid to Americans starting this month. This follows after the Senate approved the legislation over the weekend. President Joe Biden is expected to sign it before major unemployment programs expire Sunday.
Analysts have said they remain constructive on the short-term economic outlook.
Currencies and oil
The Japanese yen changed hands from 108.92 per dollar while the Australian dollar traded slightly higher at $ 0.7655.
The momentum in the oil market has changed and prices have fallen from Monday’s level. U.S. crude fell 0.2 percent to $ 64.93 during Asian trading hours on Tuesday, while Brent’s global benchmark fell overnight from levels above $ 70 a barrel.
Initially, Saudi Arabia reported that its oil facilities were targeted by missiles and drones on Sunday. A Houthi military spokesman claimed responsibility for the attacks. Analysts said the rise in prices was likely to be short-lived as Saudi citizens said there was no significant damage to infrastructure.