Asian shares saw gains on Tuesday following record highs on Wall Street, although Chinese markets experienced mixed results. U.S. futures showed a slight increase, while oil prices dropped over $2 per barrel.
In Tokyo, the Nikkei 225 index rose by 1.3% to 40,125.60, and the Kospi in Seoul increased by 0.2% to 2,627.92. The S&P/ASX 200 in Australia was up by 0.8% to 8,321.40.
However, Chinese shares faced losses after a report revealed a significant decline in export growth for September, indicating economic weakness. The Shanghai Composite index fell by 0.5% to 3,267.13, and the Hang Seng in Hong Kong dropped by 1.3% to 20,810.11.
Market analysts noted that uncertainty around fiscal stimulus support from Chinese authorities was impacting risk-taking in Chinese equities.
The dollar weakened against the Japanese yen and the euro. U.S. benchmark crude oil prices decreased by $2.25 to $71.58 per barrel, while Brent crude dropped by $2.33 to $75.13 per barrel.
On Wall Street, the S&P 500 and the Dow Jones Industrial Average reached new highs, with the S&P 500 closing at 5,859.85 and the Dow Jones at 43,065.22. The Nasdaq composite also gained, closing at 18,502.69.
Stocks for miners and companies like Boeing faced declines, with Boeing announcing significant cash burn and layoffs due to a labor strike affecting production.
This week's focus will be on corporate earnings reports, with Bank of America, Johnson & Johnson, and UnitedHealth Group set to report on Tuesday. Analysts expect S&P 500 companies to show a 4.1% growth in earnings per share for the latest quarter.
The rally in stocks is attributed to optimism around interest rates and the U.S. economy's strength, with hopes that the Federal Reserve can manage inflation without causing a recession.
