Asian markets are higher for a second consecutive day Tuesday as investors are ready for the signing of the phase one trade deal between the U.S. and China. There’s also optimism ahead of the start of earnings season in the U.S., with major banks getting ready to report on their fourth-quarter results beginning Tuesday with JPMorgan, Wells Fargo, and others. Expectations are for good results despite three rate cuts in 2019 and the trade war that went on all through 2019.
In Japan investors are coming back from a holiday extended three day weekend, sending the Nikkei higher by 0.8% after the Yen softened overnight and nearly topped the 110 level versus the U.S. dollar. A weaker Yen is positive for Japan’s exporters.
On mainland China, the Shanghai Composite is trading 0.2% higher, while the smaller-cap Shenzhen Composite has edged up by 0.1%. Over in Hong Kong, the Hang Seng remains at an eight-month high as it is 0.4% higher and has passed the 29,000 level.
Australia’s S&P/ASX 200 is recovering from a loss in the previous session and trades 0.8% higher. Gains are coming from the tech space, from the major miners, and from financials. Gold miners are weak, and the oil stocks are mixed.
Southeast Asian markets are also making broad-based gains, with the Straits Times in Singapore rising 0.4% and the KLCI in Malaysia adding 0.1%.