A pedestrian and jogger pass by the Reserve Bank of Australia (RBA) building during the partial lockdown due to the coronavirus, Monday, May 18, 2020, in Sydney, Australia.
David Gray | Bloomberg | Getty Images
Asia-Pacific markets rebounded on Tuesday as Wall Street stocks surged overnight as investors awaited the Reserve Bank of Australia’s interest rate decision.
The Reserve Bank of Australia is expected to keep interest rates at 4.35%, but investors will focus on the language used in its monetary policy statement.
“Broader inflation is moving in the wrong direction and inflation is broad-based,” ING said in a preview report. Australia’s overall inflation rate climbed to 3.8% in April from a low of 3.4% in December 2023.
“The bottom line is that we need to see a clear slowdown in month-on-month inflation growth, otherwise inflation will go further off track in the second half,” the analysts added.
Australia’s S&P/ASX 200 index rose 0.92% ahead of the RBA’s decision.
Japan’s Nikkei 225 Index It rose 0.83% after plunging nearly 2% on Monday, while the Topix gained 0.48%.
On Tuesday, Reuters reported that Bank of Japan Governor Kazuo Ueda told the Japanese parliament that the central bank may raise interest rates in July, depending on economic data at the time.
Korean Cospi Chipmakers Samsung Electronics and SK Hynix rose about 2.3% and 3% respectively, driving their shares up 0.84%.
Automaker Hyundai Motor also hit a new record, rising about 3.05% news about its plans Listed its Indian subsidiary in Mumbai.
Hong Kong’s Hang Seng Index The CSI 300 Index fell 0.17%, while the CSI 300 Index edged up 0.15%.
U.S. stocks closed overnight, with the S&P 500 hitting a new high as Wall Street looked to extend last week’s gains.
The index rose 0.77% to close at 5,473.23 points, while the Nasdaq rose 0.95%. The Dow Jones Industrial Average rose 0.49%, ending a four-day losing streak.
—CNBC’s Samantha Subin and Tanaya Macheel contributed to this report.
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