FX.co ★ Asian Markets Traded Mixed

Asian stock markets displayed mixed activity on Tuesday, caught between the encouraging signals from Wall Street and the broader uncertainties surrounding U.S. President-elect Donald Trump’s upcoming policies, particularly his tariff increase plans. The markets are also anticipating key U.S. inflation data later this week. Notably, most Asian markets concluded Monday with declines.

Market sentiment remains optimistic regarding Trump's potential tax cuts and deregulation, projected to boost corporate earnings. However, apprehensions about inflation, spurred by potential tariff hikes, threaten to complicate the U.S. Federal Reserve's interest-rate strategy.

In Australia, following the prior session’s losses, the stock market showed a moderate decline on Tuesday, despite the positive cues from Wall Street. The S&P/ASX 200 dipped towards the 8,200 mark, largely influenced by weakness in the mining sector due to dropping metal prices.

The S&P/ASX 200 Index decreased by 32.10 points or 0.39 percent to 8,234.10, after reaching a low of 8,215.80. Simultaneously, the All Ordinaries Index saw a reduction of 28.10 points or 0.33 percent to 8,490.80. Australian equities posted slight losses on Monday.

In the mining sector, BHP Group and Rio Tinto saw declines of nearly 2 percent and 3 percent, respectively, while Fortescue Metals fell over 1 percent. Conversely, Mineral Resources inched up by 0.4 percent.

Oil stocks were generally on the rise. Origin Energy gained close to 1 percent, whereas Woodside Energy, Beach Energy, and Santos each saw modest increases between 0.1 percent and 0.4 percent.

Technology companies, including Appen, Zip, Xero, and WiseTech Global, experienced minor gains between 0.2 percent and 0.4 percent. Block, the parent company of Afterpay, surged almost 11 percent, mirroring its U.S.-listed shares' jump after a favorable report from Piper Sandler.

In the gold mining industry, Gold Road Resources and Evolution Mining led declines with drops nearing 5 percent, while Resolute Mining and Northern Star Resources decreased by over 3 percent. Newmont plunged by over 5 percent.

Among the major banks, Commonwealth Bank edged up by 0.1 percent and ANZ Banking increased by nearly 1 percent. In contrast, Westpac fell by 0.4 percent, and National Australia Bank dropped more than 3 percent.

On a separate note, Paladin Energy's shares plummeted almost 25 percent after the uranium producer revised its FY25 guidance downward, citing operational hurdles and production delays.

In currency, the Australian dollar was trading at $0.656 USD on Tuesday.

The Japanese stock market experienced notable upward movement on Tuesday, following gains from the previous sessions. The Nikkei 225 advanced beyond the 39,800 threshold, supported by strong performances in key stocks, exporters, and financial entities, although technology stocks presented some drag.

The Nikkei 225 Index concluded the morning session at 39,748.13, up by 214.81 points or 0.54 percent, after achieving an earlier peak of 39,866.72. Japanese stocks recorded marginal gains on Monday.

Key players like SoftBank Group increased by nearly 1 percent, and Fast Retailing (operator of Uniqlo) rose by nearly 2 percent. In the automotive sector, Honda moved up by 1.5 percent, with Toyota climbing over 3 percent.

In the technology arena, Advantest slid by more than 2 percent, Screen Holdings declined nearly 3 percent, and Tokyo Electron dropped close to 2 percent.

In banking, Mitsubishi UFJ Financial and Mizuho Financial each rose by over 2 percent, with Sumitomo Mitsui Financial adding almost 2 percent.

Top exporters mostly registered advances. Panasonic gained almost 3 percent, Mitsubishi Electric edged up 0.1 percent, and Canon added about 2 percent, while Sony saw a slight decline of 0.4 percent.

Renesas Electronics soared by nearly 10 percent, while Furukawa Electric surged almost 8 percent, with Recruit Holdings advancing over 5 percent. Meanwhile, Mitsubishi Motors, Nissan Motor, Suzuki Motor, and Bridgestone each posted gains of nearly 5 percent. Tokyo Tatemono, Rakuten Group, and TDK increased by over 4 percent, alongside Nissan Chemical, Isuzu Motors, and Japan Steel Works, which rose by almost 4 percent each.

Conversely, Dowa Holdings drastically dropped by nearly 7 percent, DeNA lost over 5 percent, and Chiba Bank and Lasertec each fell by around 3 percent.

In economic developments, the Bank of Japan reported a 1.2 percent year-over-year increase in the M2 money stock in October, at 1,249.8 trillion yen. This fell short of the 1.5 percent growth expectations and was revised down from September's 1.3 percent figure. Meanwhile, the M3 money stock maintained a stable annual increase of 0.7 percent, as the L money stock rose by 3.2 percent for the third consecutive month.On Tuesday, the U.S. dollar is experiencing an upswing, trading within the higher 153 yen range in the currency market.

In Asian markets, Taiwan has declined by 1.7 percent. Meanwhile, Hong Kong, Singapore, and South Korea each saw reductions ranging between 0.5 and 0.7 percent. Conversely, New Zealand, China, Malaysia, and Indonesia observed modest increases, each climbing between 0.1 and 0.3 percent.

Turning to Wall Street, Monday saw a robust finish for stocks, with the Dow Jones Industrial Average and the S&P 500 reaching new record levels, despite the Nasdaq remaining relatively unchanged as technology stocks exhibited a lackluster performance. The Dow Jones closed at 44,293.13, reflecting a rise of 304.14 points or 0.69 percent. The S&P 500 edged up by 5.81 points or 0.1 percent, closing at 6,001.35. Meanwhile, the Nasdaq achieved a slight gain of 11.99 points or 0.06 percent, concluding at 19,298.76.

In Europe, the main stock markets likewise showed positive momentum. The FTSE 100 in the U.K. advanced by 0.65 percent, while Germany's DAX and France's CAC 40 increased by 1.21 percent and 1.2 percent, respectively.

Crude oil prices closed significantly lower on Monday, influenced by a strengthening dollar and concerns over demand. West Texas Intermediate Crude oil futures for December deliveries fell by $2.34, or 3.6 percent, closing at $68.04 per barrel.