The major Asia-Pacific stock indexes finished higher on Tuesday tracking Wall Street as U.S. President Donald Trump left the hospital to return to the White House, where he will continue being treated for the coronavirus following his positive diagnosis late last week.
Meanwhile, the Reserve Bank of Australia (RBA) announced its decision to maintain the current policy settings. Additionally, shares of gold firms Northern Star Resources and Saracen Mineral Holdings in Australia surged more than 10% each in Tuesday’s trade after a merger was announced.
Markets in China remained closed for a holiday.
In the cash market on Tuesday, Japan’s Nikkei 225 Index settled at 23433.73, up 121.59 or +0.52%. Hong Kong’s Hang Seng Index finished at 23980.65, up 212.87 or +0.90 and South Korea’s KOSPI Index closed at 2365.90, up 7.90 or +0.34%. Australia’s S&P/ASX 200 Index settled at 5962.10, up 20.50 or +0.35%.
Reserve Bank of Australia Holds Cash Rate Steady
The RBA held its cash rate steady as expected, while policymakers reiterated its promise for additional stimulus if necessary.
In a statement announcing the central bank’s monetary policy decision, RBA Governor Philip Lowe said: “The Board continues to consider how additional monetary easing could support jobs as the economy opens up further.”
Australian Shares Marginally Higher
Australia shares finished marginally higher after the RBA decision, while gold stocks gained after miners Northern Star Resources and Saracen Mineral Holdings said they would merge to create a global top-10 gold miner by market value.
Nikkei Hits 1-Week High after Trump’s White House Return Lifts Risk Mood
Japanese stocks ended at a near one-week high on Tuesday, as risk sentiment improved after U.S. President Donald Trump returned to the White House following treatment at a hospital for COVID-19, easing fears over political uncertainty.
Investors took cues from Wall Street’s positive finish overnight when main indexes rose sharply on stimulus hopes and on news President Trump would return to the White House after a three-night hospital stay.
Japanese technology and semiconductor shares gained as they benefited from more than a 2% rise in the NASDAQ overnight.
South Korea Stocks Gain for Fifth Session as Trump Returns to White House
South Korean shares closed higher on Tuesday for the fifth straight session as markets across Asia rose after U.S. President Donald Trump was discharged from the hospital following treatment for coronavirus.
Hopes for a fresh U.S. stimulus package appeared to brighten after U.S. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin spoke by phone for about an hour on Monday on coronavirus relief and were preparing to talk again on Tuesday.
Foreigners were net buyers of 31.1 billion won ($26.77 million) worth of shares on the main board. Foreign investors were seen increasing their bets on companies with optimistic earnings forecasts.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire