Australian shares are likely to fall. US markets were closed Monday for the Labor Day federal holiday.

ASX futures were down 0.3% or 19 points as of 8:30am on Tuesday, suggesting a lower open.

In commodity markets, Brent crude oil rose 0.5% to US$89.00 a barrel while gold was slightly down at US$1,938.71.

In local bond markets, the yield on Australian 2 Year government bonds were up at 3.83% while the 10 Year yield rose slightly to 4.09%. US Treasury notes were higher, with the 2 Year yield unchanged at 4.88% and the 10 Year yield unchanged at 4.18%.

The Australian dollar was unchanged at 64.60 US cents from its previous close of 64.60. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, edged down to 98.52.


Chinese shares ended higher with sentiment lifted by Beijing's measures to boost the property sector. Over the weekend, more major cities said they would ease home-purchase restrictions and mortgage policies. Real estate-related stocks were lifted by reports that Country Garden, the country's biggest developer, received creditors' approval to extend a maturing bond. Seazen Holdings gained 2.1% and Gemdale Corp. rose 1.6%. Consumer companies also gained with China Life Insurance up 2.1% and China Tourism Group Duty Free 6.0% higher. The benchmark Shanghai Composite Index closed 1.4% higher at 3177.06. The Shenzhen Composite Index also gained 1.4% and the tech-heavy ChiNext Price Index added 0.85%.

Hong Kong shares closed higher, with investor sentiment boosted by China's latest property easing measures, after the stock market was closed Friday due to a typhoon. Almost all sectors ended higher, led by materials and real estate stocks. Country Garden Holdings surged 15% after it received creditor approval to extend a bond, state media reported over the weekend. Semiconductor Manufacturing International Corp. climbed 11% following Huawei's launch of the Mate 60 Pro phone. China Resources Land gained 9.95% and Longfor advanced 8.35%. Zijin Mining Group was up 8.1%. Utilities stocks weighed on the market, with ENN Energy Holdings down 3.8% and CLP Holdings shedding 0.7%. The benchmark Hang Seng Index gained 2.5% to 18844.16, while the Hang Seng Tech Index rose 3.0%.

Japanese stocks ended higher, led by gains in auto, steel and bank stocks, as optimism grows for the US economy's gradual slowdown. The Nikkei Stock Average closed 0.7% higher at 32939.18. Toyota Motor climbed 3.1%, Nippon Steel gained 3.9% and Mitsubishi UFJ Financial Group advanced 2.7%. The 10-year Japanese government bond yield rose 1.5 basis points to 0.640%. Investors are focusing on monthly business updates from companies.

Indian shares closed higher as manufacturing activity gained momentum. India's August manufacturing Purchasing Managers' Index rose to a three-month high of 58.6, according to data released Friday. "Manufacturing activity has picked up steam over the past month, accelerating further from an already brisk pace," Frederic Neumann, chief Asia economist at HSBC, said in a research note. IT stocks led gains, with Wipro rising 4.3% and HCL Tech up 4.0%. Financials weighed on the market. Axis Bank shed 0.9% and Kotak Mahindra Bank lost 0.5%. Rail Vikas Nigam gained 12% after it won a INR2.82 billion project from Madhya Gujarat Vij. The benchmark Sensex closed 0.4% higher at 65628.14.


European stocks rose after upbeat trading in Asia, with tech stocks among the biggest risers. The Pan-European Stoxx Europe 600 closed flat and France's CAC 40 and Germany's DAX slipped 0.2% and 0.1% respectively, with the likes of ams-Osram, Infineon Technologies and BE Semiconductor Industries gaining most. Asia stocks rose, with markets in mainland China and Hong Kong rallying more than 1% and 2%, respectively. "Hopes of more China stimulus lifted the Hang Seng and other Asia markets," IG analysts write. "In Japan, corporate profits hit a record in the second quarter, putting new strength into Japanese indices. US markets are closed for Labor Day, leaving European investors facing a quiet session."

London's blue-chip FTSE 100 index closed the trading day 0.16% lower on Monday at 7,452.76 points. "Today's initial gains have been tempered somewhat by caution that the rally in Asia might be largely a knee jerk response to a narrow rebound in housing sales in two Chinese cities, with the bigger test set to come tomorrow with the return of US markets," CMC Markets UK's Michael Hewson wrote in a market comment. Chinese-sensitive mining company Glencore was among the index's top performers, with International Consolidated Airlines Group also performing strongly boosted by solid updates from peers Ryanair and Wizz Air.

North America

US markets were closed Monday for the Labor Day federal holiday.