Asia-Pacific Shares Set to Open Higher after Another Record Performance on Wall Street

The major Asia-Pacific stock indexes are expected to open higher on Tuesday, mirroring the price action in the U.S. markets in the overnight session.

After a mostly sideways trade, U.S. stock indexes climbed, with the benchmark S&P 500 Index and the blue chip Dow hitting intraday record highs. Optimism over the reopening of the U.S. economy offset concerns over the start of the two-day Federal Reserve meeting on Tuesday.

On Monday, the Asia-Pacific markets finished mixed as a few of the major indexes pared some of their gains while other struggled to advance.

In the cash market, Japan’s Nikkei 225 Index settled at 29766.97, up 49.14 or +0.17%. Hong Kong’s Hang Seng Index finished at 28833.76, up 94.04 or +0.33% and South Korea’s KOSPI Index closed at 3045.71, down 8.68 or -0.28%.

In China, the benchmark Shanghai Index settled at 3419.95, down 33.13 or -0.96% and in Australia, the S&P/ASX 200 Index finished at 6773.00.

China Stocks End Lower as Policy Tightening Worries Persist

China shares closed lower on Monday, with heavyweight consumer, healthcare and new energy stocks leading the losses, as the recent conservative annual economic growth target reignited fears Beijing could tighten policy to reign in lofty valuations.

Growth shares have come under intense pressure globally in recent weeks amid rising inflation fears. Such stocks have been hit especially hard in China due to fears that authorities are keen to reduce generous, pandemic-era stimulus.

China’s regulators also have told banks to trim their loan books this year to guard against risks emerging from bubbles in domestic financial markets.

Japan Shares Edge Up as Stimulus Cheer Lifts Cyclicals

Japanese shares inched higher on Monday as optimism around the passage of a massive U.S. stimulus package boosted cyclical stocks, although declines in Softbank Group and other tech companies limited gains.

“Investors are buying cyclical shares that would benefit from a recovery of the U.S. economy, which would be accelerated by the huge economic package that was approved,” said Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities.

South Korean Stocks End Lower as US Yields Rise; Fed Meeting Eyed

South Korean shares closed lower on Monday, dragged by worries about rising U.S. bond yields, with investors now eyeing the U.S. Federal Reserve’s policy meeting this week. But, the losses were limited by optimism around the passage of a $1.9 trillion stimulus from the United States and better-than-expected Chinese industrial output data.