Nikkei
Japanese stocks gained for a third day, with the Nikkei 225 closing above 33,000 for the first time since July 1990, as investors expect a potential pause in rate hikes by the Federal Reserve this week.
The Topix rose 1.2% to close at 2,264.79, while the Nikkei advanced 1.8% to 33,018.65. Toyota Motor contributed the most to the Topix gain, increasing 5.1%, after executives sounded more confident in their ability to build and sell millions of electric vehicles. Battery-related stocks also climbed. Out of 2,156 stocks in the Topix, 1,194 rose and 858 fell, while 104 were unchanged.
"More market participants are expecting the FOMC to hold off on raising interest rates, which might result in more money flowing into the stock market." said Ayako Sera, market strategist at Sumitomo Mitsui Trust Bank. "While investors are cautious about the recent strength of Japanese equities, there is limited reason to sell at the moment."
Hang Seng
Hong Kong stocks closed with more gains Tuesday on growing optimism that the Federal Reserve will not hike interest rates this week, having lifted them for 10 straight meetings.
The Hang Seng Index climbed 0.60 percent, or 117.11 points, to 19,521.42.
The Shanghai Composite Index rose 0.15 percent, or 4.84 points, to 3,233.67, while the Shenzhen Composite Index on China's second exchange added 0.62 percent, or 12.62 points, to 2,033.79.
Gold
Gold futures declined for a third consecutive session on Tuesday. "For gold to rally, it needs Wall Street to become confident that the Fed is done raising rates," said Edward Moya, senior market analyst at OANDA, in a market update.
Data released Tuesday showed that U.S. inflation has slowed, with consumer prices up 0.1% in May. This inflation report was "in-line, but some Fed members might be concerned that core pricing pressures are looking sticky," Moya said. "The Fed will remain data-driven, but optimism should be high that the end of tightening is near." Gold for August delivery fell $11.10, or 0.6%, to settle at $1,958.60 an ounce on Comex.
Oil
Oil prices climbed over 3% on Tuesday on hopes for growing fuel demand after China's central bank lowered a short-term lending rate for the first time in 10 months, boosting crude prices after steep losses the previous session.
The rate cut is aimed at adding momentum to a hesitant post-pandemic recovery in the world's second-largest economy and biggest crude importer.
Brent crude futures settled up $2.45, or 3.4%, to $74.29 a barrel. U.S. West Texas Intermediate (WTI) crude gained $2.30, or 3.4%, at $69.42 a barrel.
On Monday, crude prices fell by about 4%, in part because of concerns about the Chinese economy after disappointing economic data last week.
