Asian stocks edged lower on Tuesday, contrasting with a strong Wall Street close and investor optimism about corporate earnings, while the dollar held near a two-month top, aided by bets on a smaller U.S. rate cut next month.
Oil prices fell about 3% after Israeli Prime Minister Benjamin Netanyahu reportedly told the United States that Israel is willing to strike Iranian military targets and not nuclear or oil ones, easing immediate concerns about supply disruptions. [O/R]
The Nikkei rallied more than 1% to a three-month peak, having been closed on Monday for a holiday. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.26% as gains in Taiwan and Australia were overshadowed by a drop in Chinese markets.
China's blue chips fell 1.08%, while Hong Kong's Hang Seng index slid nearly 2% as a lack of new stimulus details from Beijing left investors wanting for more.
Chinese media reported Beijing may raise an additional 6 trillion yuan ($850 billion) from Treasury bonds over three years to help bolster a sagging economy.
"China's signal on policy stimulus prompted us to go modestly overweight, especially given depressed valuations. Details have been scant, so we could change our view if future announcements disappoint," said analysts at BlackRock (NYSE:BLK) Investment Institute.
"We still like U.S. stocks and the broad AI theme as corporate earnings growth expands beyond tech. Yet fears over stretched valuations can drive brief selloffs. This calls for considering global exposure where we see cheap valuations and potential catalysts.(Cay)
Source: Investing.com
