By Ese Erheriene
Asian stock markets were mostly stronger in early trading Tuesday, with Australia leading the way higher after badly lagging regional peers a day earlier.
Helping sentiment has been stabilization for now in the U.S. dollar. Its recent weakness had been pressuring down stocks in Australia and Japan in particular. The WSJ Dollar Index /zigman2/quotes/210673925/realtime XX:BUXX +0.72% finished flat on Monday and was up 0.1% early Tuesday.
Also helping Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO +0.12% rise 0.7% was an overnight rebound in oil prices, which has continued in Asia. Up 1% to start the week, U.S. and global benchmarks were each up an additional 0.6% Tuesday. The gains have helped Asian oil stocks, with Woodside Petroleum /zigman2/quotes/203437212/delayed AU:WPL +0.82% up 1.3% in Australia.
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Crude’s climb came on pledges from Saudi Arabia and Nigeria to curb exports and output, respectively. “It was a little bit of a surprise for the market as the market wasn’t expecting them to deliver such strong statements,” said Jingyi Pan, a market strategist at IG Group.
Technology stocks were also a bright spot, following the latest record closing high overnight for the Nasdaq Composite /zigman2/quotes/210598365/realtime COMP +2.06% . Sharp /zigman2/quotes/203224600/delayed JP:6753 +0.66% rose 1.3% in Japan while in Taiwan, Largan Precision /zigman2/quotes/210444196/delayed TW:3008 +0.71% and HTX gained 1.4% and 0.6% respectively.
But headline stock indexes in both countries were muted, with the Nikkei /zigman2/quotes/210597971/delayed JP:NIK +0.74% up 0.1% and the Taiex down that much.
Helping the Japanese benchmark was a pair of drugmakers. Shionogi /zigman2/quotes/202489631/delayed JP:4507 +1.03% rose 2.9% after reporting successful final-stage trials for a single-dose influenza drug and Mitsubishi Tanabe climbed 1.9% following Monday’s after-the-bell announcement that it will buy Neuroderm for $1.1 billion.
Other stock indexes were generally little changed early Tuesday, including in China /zigman2/quotes/210598127/delayed CN:SHCOMP +0.40% . The injection of liquidity Monday by the central bank had little impact on markets there.
“The general liquidity conditions in onshore China are still tight as the bond yields barely moved after the central bank’s massive liquidity injection,” said Commerzbank. It added authorities’ deleveraging efforts have “raised concerns that the overall monetary-policy stance is biased to the hawkish side” for the rest of this year.
One market to watch Tuesday is South Korea, where the Kospi index /zigman2/quotes/210598069/delayed KR:180721 +1.43% has posted a record closing high each of the past eight sessions. It was recently down 0.2% amid a 0.9% drop in index behemoth Samsung /zigman2/quotes/209800866/delayed KR:005930 +1.65% .
Write to Ese Erheriene at firstname.lastname@example.org