Asian stocks showed a mixed performance on Tuesday, with most markets in the region posting gains. The Nikkei 225 in Tokyo rose by 2.1% to 38,156.41, rebounding from a previous day's decline. The yen, after briefly touching 145 against the U.S. dollar, settled at 146.94 on Tuesday.
China maintained its benchmark lending rates unchanged, with the one-year loan prime rate at 3.35% and the five-year LPR at 3.85%. This decision followed a series of interest rate cuts last month aimed at bolstering the economy. The one-year LPR is a key reference for corporate loans, while the five-year LPR influences mortgage rates.
Meanwhile, Hong Kong's Hang Seng index dropped by 0.3% to 17,525.16, and the Shanghai Composite lost 1.0% to 2,865.18. In Australia, the S&P/ASX 200 advanced by 0.2% to 7,996.50, with the Reserve Bank of Australia emphasizing its focus on containing inflation by maintaining the cash rate target at 4.35%.
South Korea's Kospi index surged by 0.8% to 2,695.32. In the U.S., futures were slightly higher, while oil prices experienced a decline. The S&P 500 rallied 1% to close at 5,608.25, marking its eighth consecutive gain and nearing its all-time high. The Dow Jones Industrial Average gained 0.6% to 40,896.53, and the Nasdaq composite jumped 1.4% to 17,876.77.
Market participants are eagerly awaiting a speech by Federal Reserve Chair Jerome Powell on Friday at Jackson Hole, Wyoming. Expectations are high for a potential interest rate cut next month, as inflation has moderated from its peak. Concerns about the U.S. economy, particularly weak hiring data, have prompted discussions about the need for rate adjustments.
Recent reports on the U.S. economy have been positive, contributing to market optimism. In the bond market, the 10-year Treasury yield dipped slightly to 3.87%. Energy trading saw benchmark U.S. crude declining to $73.09 a barrel, while Brent crude rose to $77.05 a barrel. The euro weakened slightly against the dollar, trading at $1.1075.
