Australia’s interest rate decision, oil, currencies

SINGAPORE – Asia-Pacific markets rose Tuesday, following shares on Wall Street as they rose for another session. Investors in the region looked forward to India’s budget announcement as well as Australia’s interest rate decision.

Japan Nikkei 225 jumped 1.13% in early trading, while Topix rose almost 1%. Some technology stocks rose, with SoftBank rising 1.28% and Sony 1.73% higher.

Sony’s subsidiary Sony Interactive Entertainment announced on Monday that it has agreed to buy privately owned video game developer Bungie for $ 3.6 billion.

Meanwhile, Japan’s manufacturing activity grew at the fastest pace in nearly eight years, according to Reuters, caused by new orders and stronger production.

Australia’s ASX 200 rose 0.33% after a previous decline.

Data on Tuesday showed that Australia’s retail sales in December fell 4.4% to 31.9 billion Australian dollars (22.53 billion USD), after a jump of 7.3% in November, according to Reuters.

In other economic data ahead, Australia must announce its interest rate decision.

“It is widely expected [Reserve Bank of Australia] will end [quantitative easing]and also opens up the possibility of assessing increases in 2022, but will see the beginning of 2023 as being more likely according to their wage forecasts, “wrote Tapas Strickland, director of economics and markets at National Australia Bank.

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India is also due to announce its budget on Tuesday. Economists expect the announcement will include measures that support growth while allowing the government to reduce its deficits and debt build-up.

“Especially the rise in oil is a concern as the negative impact on discretionary demand as well as eroding margins may circulate back to put the fiscal positions back,” Vishnu Varathan of Mizuho Bank wrote in a Monday note, citing India’s forthcoming budget announcement. India is a major oil consumer and importer.

“The card is that FY2023 Budget should ensure a delicate balance between supportive growth dynamics and fiscal consolidation,” he added.

Elsewhere, markets in mainland China, Hong Kong, South Korea and Singapore are closed due to a holiday.

On Wall Street, stocks rose for another day Monday to end a harsh January.

The S&P 500 rose 1.89% to 4,515.55, closing the month down 5.3%. It is the worst month since the loss of 12.5% ​​in March 2020 and the biggest drop in January since 2009. The Dow Jones Industrial Average added 406.39 points or 1.2% to reach 35,131.86. It helped reduce its monthly loss to 3.3% as it benefited from its underweight in technology stocks.

The technology-heavy Nasdaq Composite rose 3.41% to 14,239.88, adding its comeback of 3% on Friday. The index still ended with a decline of 8.9% for January, its worst month since March 2020.

Currencies, oil

The US dollar index, which follows the dollar against a basket of its peers, stood at 96,685, falling from levels around 97.1 earlier in the week.

The Japanese yen is trading at 115.09 per dollar, which has strengthened from levels around 115.2 previously. The Australian dollar was at $ 0.7066, rising from levels around $ 0.698 previously.

Meanwhile, oil rose Monday to their biggest monthly rise in nearly a year due to shortages of supplies and political tensions in Eastern Europe and the Middle East, according to Reuters.

As the crisis between Russia and Ukraine escalates, Moscow is sending more troops and weapons to its border, where an estimated 100,000 troops have already been deployed.

Brent oil ended the day at $ 91.21 with a gain of 1.31%. US West Texas Intermediate crude fell 1.53% higher to $ 88.15 per barrel. barrel.

Tuesday morning in Asian hours, U.S. crude rose 0.16% to $ 88.29 a barrel, while Brent rose 0.19% to $ 89.43.

– CNBC’s Tanaya Macheel and Saheli Roy Choudhury contributed to this report.

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