Asian stock markets are trading firm on Tuesday with the overnight gains in the U.S. and European markets amid some fairly encouraging economic data prompting investors to indulge in some buying.
Though gains are not significantly pronounced in most of the markets, the mood is somewhat upbeat amid slightly easing worries about the global economy.
The Australian market is trading higher with investors picking up stocks, tracking positive cues from the U.S. and European markets.
Energy, mining, bank and industrial stocks are trading notably higher, while consumer discretionary and healthcare stocks are trading mixed.
The benchmark S&P/ASX 200 index is up 29.4 points or 0.7 percent at 4,418. The broader All Ordinaries index is trading at 4,436.3, up 28.1 points or 0.6 percent from its previous close.
Among top miners, BHP Billiton (BHP, BBL), Rio Tinto (RIO, RIO.L) and Newcrest Mining are up 0.6 to 1 percent. Fortescue Metals shares are under a trading halt, ahead of a high court decision that could put Andrew Forrest's position as chairman of the company in doubt.
In the energy sector, Woodside Petroleum, Oil Search and Origin Energy are up 0.8 to 1.2 percent and Santos is gaining nearly 3 percent, while Caltex Australia is trading marginally up.
Bank stocks are trading firm ahead of the central bank's interest rate decision. ANZ Bank (ANZ), National Australia Bank and Westpac (WBK) are up 0.7 to 1 percent, while Commonwealth Bank of Australia is trading marginally up. Bendigo & Adelaide Bank and Bank of Queensland are up 1.2 percent and 1 percent, respectively.
During the day, the Reserve Bank of Australia will conclude its monetary policy meeting and then announce its decision on the benchmark interest rate. The RBA is widely expected to keep rates on hold at the current level of 3.50 percent. The RBA also will release commodity price index data for September.
Arrium is up 6 percent. Seven West Media, Aurora Oil & Gas, ALS, Beach Energy, Incitec Pivot and PanAust are trading higher by 2 to 3.3 percent.
Qantas Airways shares are up nearly 3 percent after the airline said it sold its 50 percent stake in road freight operator StarTrack to Australia Post, and has taken full ownership of air freight business Australian air Express.
Goodman Group, Metcash, Bluescope Steel, Oz Minerals, Atlas Iron, Boart Longyear, Stockland, Tatts Group and Alumina (AWC) are also up with strong gains.
Atlas Iron, Lynas Corporation, Boart Longyear, Tabcorp Holdings, Goodman Group, Stockland, Sims Metal Management, Beach Energy and Challenger are also trading notably higher.
After a fairly strong upmove on the back of positive global cues, the Japanese market pared some gains towards the end of the morning session, with a section of investors indulging in some profit taking.
Insurance, mining, steel, non-ferrous metals and marine transport stocks started off on a high note and were mostly trading firm when the morning session ended. Electric power, manufacturing and foods stocks were a bit subdued.
The benchmark Nikkei 225 index, which rose to 8,843.3, was up 21.9 points or 0.3 percent at 8,818.4 at the end of the morning session.
Shares of Softbank Corp. moved up sharply. The company had announced on Monday that it will buy eAccess Ltd for around 180 billion yen. Softbank will pay 16.74 of its share for each share of eAccess. The company said the acquisition will enable it to offer the best broadband services.
Nippon Yusen KK gained over 6.5 percent. Mitsui OSK Lines also gained more than 6 percent. Ricoh, Kawasaki Kisen Kaisha, JFE Holdings, JX Holdings, Kobe Steel, Sony Corp. (SNE) and Sumitomo Heavy Industries were up 2 to 4.4 percent.
Among the prominent losers, Alps Electric Co. plunged as much as 10 percent. Hokuetsu Kishu Paper lost over 6 percent. Pioneer Corp. and Nippon Suisan Kaisha drifted down by over 3 percent.
KDDI Corp., Chubu Electric Power, Oki Electric Industry, Mitsubishi Paper Mills, TDK Corp. and Mitsubishi Motors also posted notable losses.
According to data released by Bank of Japan, the monetary base in Japan jumped 9.0 percent on year in September, standing at 124.326 trillion yen. That follows the 6.5 percent increase in August.
Banknotes in circulation added an annual 2.3 percent, while coins in circulation collected 0.4 percent. Current account balances spiked 27.6 percent on year, including a 30.0 percent surge in reserve balances. The adjusted monetary base soared 45.4 percent on year to 123.991 trillion yen. For the third quarter of 2012, the monetary base jumped 8.0 percent on year.
In the currency market, the U.S. dollar traded around 78 yen in early deals in Tokyo. The yen is currently trading at 78.07 to the dollar.
Among other markets in the Asia-Pacific region, Indonesia, Malaysia, New Zealand, Singapore, South Korea and Taiwan are all trading notably higher. Markets in China and Hong Kong remain closed for the National Day holiday.
On Wall Street, stocks turned mixed after some early gains on Monday. The pullback came as traders seemed reluctant to make significant moves ahead of the release of the closely watched monthly employment report.
The major averages ended the day on opposite sides of the unchanged line, with the Nasdaq posting a modest loss. While the Nasdaq edged down 2.7 points or 0.1 percent to 3,113.5, the Dow rose 78 points or 0.6 percent to 13,515.1 and the S&P 500 climbed 3.8 points or 0.3 percent to 1,444.5.
Major European markets moved higher on Monday. The French CAC index gained 2.4 percent, while the German DAX index and the U.K.'s FTSE 100 index jumped by 1.5 percent and 1.4 percent, respectively.
U.S. crude oil settled higher on Monday, after some positive manufacturing data out of the U.S. but were limited by some soft manufacturing data from China and Europe. Oil prices were also supported by a dollar that weakened against a basket of major currencies.
Crude for November delivery gained $0.29 or 0.3 percent to close at $92.48 a barrel on the New York Mercantile Exchange.
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