RTTNews - Asian markets are trading with strong gains on Tuesday, with participants picking up stocks on positive cues from Wall Street and on hopes of a global economic recovery. The splendid surge in the Indian stock market on Monday following the clear mandate given to the Congress Party in the recent general elections is also aiding sentiment to some extent.
In the Australian market, energy and materials stocks are on a roll. Industrial, insurance, and consumer discretionary stocks are also up sharply.
Energy giants Woodside Petroleum and Santos are trading sharply higher. Materials stocks BHP Billiton, Rio Tinto and Orica are trading with strong gains.
In the banking space, ANZ Bank, Commonwealth Bank of Australia, National Bank of Australia and Westpac Banking Corporation are trading with sharp gains.
The Australian benchmark index S&P/ASX 200 is up 75.90 points at 3,812. The All Ordinaries index is trading at 3,795, up 73.80 points over its previous close.
The Nikkei 225 average of the Japanese market was up 254.40 points or 2.81% at 9,293 at the end of the morning session. Automotive, bank, oil, steel and chemicals stocks all moved up sharply. Heavy buying was seen in stocks from machinery and construction sectors as well.
In the South Korean market, bank, technology and automobile stocks are up sharply today. Stocks from oil, steel and shipbuilding spaces are also trading firm with notable gains.
The Korean benchmark index KOSPI is trading 32.14 points or 2.32% up at 1,419.
The Hang Seng average of the Hong Kong stock market is up 428.43 points or 2.52% at 17,451. The Singaporean benchmark Straits Times is trading stronger by 3.6% or 78.33 points at 2,255. The stock markets in Taiwan and Indonesia are also trading firm with their key indices gaining 2.72% and 2.6%, respectively. The Shanghai Composite average is up 0.88% at 2,676. In New Zealand, the NZX 50 is up modestly by 0.37% or 10.32 points at 2,788.18.
It was a mixed close for stock markets across the Asia-Pacific region on Monday. Japan's benchmark Nikkei 225 Index fell by 2.4 percent, while Hong Kong's Hang Seng Index climbed 1.3 percent. In India, the decisive victory of the Congress Party in recent elections buoyed up stocks and lifted the key indices up by over 17 percent.
Major European markets all closed higher on the day. The French CAC 40 Index and the German DAX Index closed up 2.4 percent, while the U.K.'s FTSE 100 Index finished up by 2.2 percent.
On Wall Street, stocks rallied on Monday, bolstered by hopes about the housing market. A report from the National Association of Home Builders said its index of homebuilder sentiment rose to 16 in May, compared to a level of 14 in April. The figure was the best reading since September, fueling speculation that the housing sector is bottoming and economic recovery may be around the corner. Further, the report indicated that attitudes of homebuilders improved for both the present situation and for the next several months.
Better-than-expected earnings from home improvement retailer Lowe's also contributed to the positive sentiment. The major indices closed prominently higher, with the Dow closing up 235.44 points at 8504, the Nasdaq finishing up 52.22 points at 1732, and the S&P 500 closing higher by 26.83 points at 910.
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