(RTTNews) - Buoyed by a positive close on Wall Street overnight on the back of some better-than-expected earnings reports and economic optimism, Asian stock markets are mostly trading notably higher on Tuesday. Though some of the markets have given up a portion of early gains, the mood remains fairly bullish in the region.

The Australian market is trading sharply higher with materials, energy and financials stocks leading the charge. Industrials and consumer discretionary stocks are among the other prominent gainers.

The benchmark S&P/ASX 200 index, which opened on a firm note and rallied to 4,871.3 a little past noon, is currently trading at 4,860, up 67.2 points, or 1.4%, over its previous close. The broader All Ordinaries index is up 62.2 points, or 1.3%, at 4,864.

Among materials stocks, BHP Billiton and Rio Tinto are trading stronger by 2.3% and 3.2% respectively. Newcrest Mining is up 1.6%, Orica is gaining about 2% and Bluescope Steel is trading higher by 3.7%. Incitec Pivot and Lihir Gold are also trading firm.

Energy stocks Origin Energy, Santos and Woodside Petroleum are trading higher by 1.5%-3%. However, Oil Search is trading lower by as much as 6.8%. The company has announced the successful completion of an A$895 million institutional placement. The company will use the proceeds to fund PNG LNG Project and other gas growth opportunities. Following the institutional placement, the company will also offer eligible shareholders the opportunity to participate in a share purchase plan.

In the banking space, ANZ Bank, Commonwealth Bank of Australia, National Australia Bank and Westpac Banking Corporation are up 1.3%-2.5%, while diversified financials stock Macquarie Group is trading 1.5% up.

Shares of supermarket giant Woolworths Ltd are down 0.8% despite the company increasing sales by 4.2% in the first quarter of 2009-10. The company expects sales for the full year to grow in the upper single digits. Sales for the 14 weeks to October 4 were A$13.367 billion. Excluding petrol, sales increased 7.4%.

On the economic front, according to a report released by the Australian Bureau of Statistics, merchandise imports into Australia rose by A$1.033 billion in September, seasonally adjusted, to A$17.218 billion. Unadjusted, merchandise imports increased by 14%, or A$2.146 billion, to A$17.637 billion, from an upwardly revised A$15.491 billion in August.

Imports of mineral fuels, lubricants and related materials rose to A$2.334 billion in September from A$1.899 billion a month earlier, while imports of machinery and transport equipment rose to A$6.886 billion from A$5.826 billion.

In the currency market, the Australian dollar is trading at 0.9263 to the U.S. dollar.

In Tokyo, the benchmark Nikkei 225 index rose to a new 3-week high as strong earnings reports from U.S. lifted sentiment and triggered some hectic buying almost across the board. The Nikkei, which rose to 10,357.6 and ended the morning session at 10,348, is currently up 81.5 points, or 0.8%, at 10,318.

Bank stocks, however, were seen struggling in morning trades on concerns about the government’s policies. Investors appear to have been hurt by the fact that individuals may also be eligible for delayed debt repayments to banks. However, after early weakness, Sumitomo Mitsui Financial, Mitsubishi UFJ Financial and Mizuho Financial have edged higher and are currently trading in positive territory with modest gains.

Shares of Advantest Corp. gained in strength in morning trades on reports that orders for the firm’s chip-testing devices likely jumped 21% quarter on quarter to about 14 billion yen in the July-September term, better than what the company had forecast earlier. However, due to profit taking, the electrical machinery stock drifted down into the red subsequently and is currently up with a modest gain

Panasonic Electric Works is trading 1.5% up following an announcement from the company that its group net loss likely stood at 2.5 billion yen for the six months through September, better than the previously forecast 7 billion yen loss.

The Japanese finance minister Hirohisa Fuji said the government will probably make a decision “within a few days” on how the struggling Japan Airlines Corp. should be restructured. The Japan Airlines stocks is currently trading nearly 6% up over its previous closing price.

In the currency market, the yen is trading at 90.36 to the U.S. dollar.

After trading higher for well over a couple of hours tracking the overnight rally on Wall Street, the South Korean stock market drifted down around noon on Tuesday due to profit taking in several front line stocks.

The benchmark KOSPI index, which rose to 1,665.7 in early trades, is currently up 4 points, or 0.23%, at 1,653.

Technology stocks LG Display LCD and LG Electronics are trading stronger by 3% and 2.5% respectively. Heavyweight Samsung Electronics and Hynix Semiconductor are trading with modest gains.

Among bank stocks, KB Financial is gaining about 2%, Woori Finance is up 1% and Shinhan Financial is trading modestly higher, while Korea Exchange Bank is trading in negative territory with a 1.2% loss.

In the shipping space, bulk carrier STX Pan Ocean is trading 3.5% up. Hyundai Heavy Industries and Samsung Heavy Industries are trading modestly higher, while Daewoo Shipbuilding is down with a modest loss.

Automobile stocks Kia Motor and Hyundai Motor are trading lower. However, Ssangyong Motor is up nearly 6% over its previous close. Airliners are trading firm, while oil, steel and telecom stocks are exhibiting a mixed trend.

Lotte Shopping is trading over 3% up following an announcement by the company that it expects to pay an estimated 735 billion won, or US$629.7 million, for Chinese supermarket operator Times.

Among other markets in the Asia-Pacific region, Shanghai, Hong Kong and New Zealand are trading notably higher, while Singapore and Taiwan are up with modest gains. The Indonesian market is trading weak. Stock markets across the region had ended on a mixed note on Monday.

On Wall Street, stocks rallied sharply on Monday on better-than-expected earnings reports and economic optimism. The decline in homebuilder confidence did hurt sentiment to an extent, but the impact was not significant.

The Dow ended stronger by 96.3 points, or 1%, at 10,092, the Nasdaq advanced 19.5 points, or 0.9%, to end at 2,176 and the S&P 500 moved up 10.2 points, or 0.9%, to 1,098.

Major European markets closed considerably higher on Monday, with the French CAC 40 index and the German DAX index advancing by 1.7% and 1.9% respectively, while the U.K.’s FTSE 100 index rose by 1.1%.

Crude moved higher for the eighth consecutive session and rose toward US$80 per barrel on Monday as higher global equities improved the outlook for energy demand. Light sweet crude oil for November delivery finished at US$79.61 per barrel, up US$1.08 on the session.

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Posted in Categories: Australia, Eurozone, Japan, New Zealand, Releases, Stocks, USA.

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