Asian Stocks Mixed Despite Wall St Gains, RBA Hits ASX
- Asian stocks were a little directionless despite a forthright US lead
- With China and South Korea out for holiday, the Nikkei gained but the ASX fell
- The Reserve Bank of Australia seemed in no hurry at all to raise interest rates
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The Nikkei 225, at least, ran with US investors’ optimism about the quarter to come, closing up 1.05%. But Australia’s ASX slipped by 0.5% into the close with bank stocks pressured by the Reserve Bank of Australia which seemed in no hurry whatsoever to raise interest rates. Markets in South Korea and China were once again closed for public holidays.
The US Dollar made six-week highs against its major traded rivals while the Australian Dollar weakened following its central bank’s September policy call. The Reserve Bank of Australia left the Official Cash Rate on hold at its 1.50% record low, as expected. It also worried again about the strength of its currency- perhaps a little more stridently than it has recently- which was enough to see the Aussie slip.
Gold edged lower as rising US yields took some of the shine from the non-yielding metal. Oil prices slipped again, but by less than they did Monday, as investors feared fresh supply increases in a market already glutted.
The rest of the session is light on scheduled economic news with only snapshots of the UK construction industry and Eurozone producer prices likely to attract attention.
--- Written by David Cottle, DailyFX Research
Contact and follow David on Twitter:@DavidCottleFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.