Most stocks in Asia opened lower on Tuesday, taking cues from an overnight decline on Wall Street, while traders await the opening of China's stock market after a week-long holiday.
The Japanese benchmark Nikkei 225 was 358 points, or 0.94% lower at 39,354, while Australia's S&P ASX 200 was up 13 points, or 0.16% at 8,205 as of 05:38 a.m.
Stocks in China are poised for a frantic Tuesday, with markets reopening after a long holiday when the nation's top leaders will hold a briefing to discuss policies aimed at boosting economic growth.
Traders will closely watch for any additional policy measures to confirm if the rally unveiled by the earlier stimulus will sustain. An index of mainland stocks listed in Hong Kong rose 2.2% on Monday, according to Bloomberg.
China's CSI 300 is up over 22% from its September lows to enter a technical bull market, according to Bloomberg. This led China to regain the influence it lost for over 10 months in the MSCI Emerging Market index.
CLSA Ltd. reduced its exposure to Indian equities to accommodate its increased bet on the Chinese stock markets, as per a note issued by the global brokerage firm. “We raise China to 5% overweight by cutting our India overweight to 10% from 20%,” it said.
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Meanwhile, stocks in the US slipped as fears of an escalating war in West Asia kept traders nervous. Israel said it intercepted most of a barrage of rockets fired by Hamas and other Iran-backed groups, Bloomberg News reported. Amidst these tensions, Brent crude jumped above $80 a barrel.
Further, stocks on Wall Street fell amid growing expectations of a small rate cut in the November Fed meeting as solid job data cemented a soft landing for the economy. Treasuries in the US continued to drop, with the 10-year yield crossing 4%.
The S&P 500 and Nasdaq Composite tumbled 0.96% and 1.18%, respectively. The Dow Jones Industrial Average declined by 0.94%.
Brent crude was trading 0.05% lower at $80.89 a barrel as of 5:57 a.m. IST. West Texas Intermediate was down 0.05% at $77.10.
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