Asian stocks rose on Tuesday, following a positive lead from Wall Street, while the dollar held onto its gains after rebounding against the euro and yen on higher U.S. Treasury yields. The region’s focus fell on the Reserve Bank of Australia’s policy decision due at 0430 GMT. Expectations are that the central bank would cut interest rates further in the wake of falling prices of iron ore, the country’s biggest export.
The prospect of more monetary easing has pushed the Australian dollar to around six-year lows while shoring up the country’s share prices. Australian shares .AXJO rallied 1.2 percent, while the Aussie was steady at $0.7613 AUD=D4, not too far from the six-year low of $0.7534 plumbed last week.
Shares in South Korea, China, Hong Kong and Malaysia rose in broad gains for the region. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS gained 0.2 percent. Japan’s Nikkei .N225 climbed 1.2 percent as the market had an opportunity to gauge how U.S. equities responded to Friday’s much weaker-than-expected non-farm payrolls.