Asia Shares Climb with Firm Aussie Before RBA Decision
Asian stocks surged on Tuesday, bolstered by gains on Wall Street and stable domestic shares in Australia ahead of the Reserve Bank of Australia's (RBA) interest rate decision. The Australian dollar held steady at $0.6617, and Australian shares rose by 0.9%. The RBA is widely expected to maintain its current rates, with market participants keenly watching for any forward guidance on a potential easing cycle. Political turmoil in Europe also contributed to the positive market sentiment.
The MSCI's broadest index of Asia-Pacific shares outside Japan climbed 0.68%, while Japan's Nikkei advanced 0.83% and Hong Kong's Hang Seng Index edged 0.14% higher. Additionally, central banks in Norway, the UK, and Switzerland are scheduled to meet this week to discuss interest rates. In the United States, futures indicate approximately 45 basis points of Federal Reserve cuts for the remainder of 2024. Meanwhile, oil prices rose on a stronger demand outlook and investor confidence that OPEC+ producers might delay plans to increase supply in the fourth quarter.
