RTTNews - Gains are expected for the New Zealand and Australia sharemarkets at Tuesday's open, after a turnaround erased most of Wall Street's early losses overnight.

New Zealand shares moved moderately lower on Monday, on a day of late trading. Australia's market had the day off for a holiday.

The benchmark NZX-50 index declined 17.89 points or 0.5 percent at 2,816.16.

Trading volume was reported by the New Zealand Stock Exchange at 37.5 million shares valued at NZ$63.6 million.

Advancing issues outnumbered decliners 43 to 35, with 40 unchanged.

The list of the session's most actively traded stocks includes Auckland International Airport, which was down NZ$.01, Contact Energy was down .13, Fletcher Building was down .06, Fisher & Paykel Appliances was up a penny, Guinness Peat was unchanged, Kiwi Income Property Trust was up two cents, Nuplex Industries was unchanged, Telecom Corp of NZ was down a nickel and Vector Ltd was unchanged.

Australia's sharemarket posted its second straight gain when stocks were last traded on Friday.

The benchmark S&P/ASX200 Average was up 36.60 points or 0.93 percent to close at while the broader All Ordinaries index advanced 36.50 points or 0.93 percent to 3,969.0.

Trading volume was 1.85 billion shares valued at A$6.6 billion.

Of the S&P component stocks, there were 89 closing higher, 93 were lower and 18 were unchanged.

Traders reacted to word that mining giant Rio Tinto had canceled its deal with China's state-owned Chinalco, and would instead establish a joint venture with rival BHP Billiton covering Western Australia's iron ore reserves. The deal sent shares of both companies higher, with Rio Tinto closing up A$5.59 or 8.36 percent and BHP gaining $3.07 or 8.74 percent.

Among the junior miners, Fortescue Metals jumped .38 or 13.57 percent, Mount Gibson Iron rose 8 cents or more than 9 percent, Murchison Metals was up .18 or nearly 11 percent and OZ Minerals was up two cents. PanAust was down a penny in heavy volume of 27.7 million shares.

Among the major banks, Australia and NZ Banking Group was down .54, Commonwealth Bank of Australia was down .28, National Australia Bank was down .26 and Westpac was up .09.

In the retail group, Woolworths was down .33, Wesfarmers gained .50, David Jones was down .02 and Harvey Norman was down .09.

Overseas, Wall Street spent much of its Monday session in lower territory after an earnings warning by fast food restaurant giant McDonald's, but stocks recouped most losses and were in the green approaching the close.

About a half hour before the closing bell, the Dow Jones Industrial Average was up 31.44 points or 0.36 percent at 8,794.57, the Nasdaq Composite index was up 4.02 points or 0.22 percent at 1.854.40 and the Standard & Poor's 500 index was up 3.11 points or 0.33 percent at 943.20.

Most of the major markets in the Asia/Pacific region closed lower on Monday.

Hong Kong's Hang Seng Index declined 426.14 points or 2.28 percent to 18,253.39.

Japan's Nikkei 225 Average bucked the trend with a gain of 97.62 points or 1.00 percent at 9,865. 63.

China's Shanghai Composite index also posted a modest gain, rising 14.44 points or 0.52 percent to 2.768.34.

In India, the BSE 30 index fell 437.63 points or 2.90 percent to 14,665.92.

Indonesia's Jakarta Composite index was down 22.28 points or 1.07 percent to 2,056.65.

The KOSPI/Seoul Composite index in South Korea declined 1.41 points or 0.10 percent to 1.393.30.

The Taiwan Weighted index was down 228.72 points or 3.34 percent to 6.628.02.

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