Asian Stocks Rise As Wall Street Extends Its Longest Winning Streak of the Year

In today’s trading, Asian stocks mostly gained, following Wall Street’s advance toward record highs after a tumultuous summer.

Investors approached this day with caution following a recent surge in optimism, driven by hopes that Federal Reserve Chairman Jerome Powell will hint at an interest rate cut in his upcoming speech to top central bankers this week.

Meanwhile, crude prices declined from Monday as hopes grew for a ceasefire in Gaza, with US Secretary of State Antony Blinken continuing discussions with regional leaders.

After meeting with Israeli Prime Minister Benjamin Netanyahu, Blinken announced that Israel had accepted a US “bridging proposal” and urged Hamas to do the same, noting that the talks might represent the “last opportunity” for an agreement. 

In Tokyo, the Nikkei 225 index rose by 2.1% to 38,156.41, rebounding from a 1.8% decline the previous day. The yen briefly neared 145 against the US dollar on Monday before retreating to 146.94 on Tuesday. 

China kept its benchmark lending rates steady on Tuesday, with the one-year loan prime rate at 3.35% and the five-year LPR at 3.85%. This decision follows a series of key interest rate cuts last month aimed at bolstering the economy. 

The one-year LPR is the benchmark for most corporate loans, while the five-year LPR is a mortgage reference rate.

In Hong Kong, the Hang Seng index fell 0.3% to 17,525.16, while the Shanghai Composite dropped 1.0% to 2,865.18. 

South Korea’s Kospi also jumped 0.8% to 2,695.32.

In Australia, the S&P/ASX 200 edged up 0.2% to 7,997.70 after the Reserve Bank of Australia’s August meeting minutes revealed that the board opted to keep the cash rate target unchanged at 4.35%, stressing that their main focus remains on controlling inflation.