Australia

Australian shares are set to open lower, despite another record day for US benchmarks.

ASX futures were down 0.01% or 1 point as of 8:30am on Tuesday, suggesting a lower open.

The S&P 500 and Dow Industrials ended at fresh highs as U.S. stocks continue to rebound from a shaky start to the year.

DJIA rose 138 points to 38001, the S&P 500 gained 0.2% to 4850 and the Nasdaq added 0.3% to 15360.

In commodity markets, Brent crude oil rose 1.6% to US$79.84 a barrel while gold was down 0.4% to US$2,020.76.

In local bond markets, the yield on Australian 2 Year government bonds was down at 3.93% while the 10 Year yield was down at 4.23%. US Treasury notes were mixed, with the 2 Year yield up at 4.39% and the 10 Year yield down at 4.10%.

The Australian dollar hit 65.68 US cents down from the previous close of 65.95. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, was up at 97.96.

Asia

Chinese shares closed lower amid subdued sentiment after China's one-year and five-year loan prime rates were left unchanged. Given China's persistent property downturn and weak consumer demand, more policy easing is necessary, Goldman Sachs said in a research note. Almost all the sectors ended lower, led by software and consumer services. Beijing Kingsoft Office Software declined 4.4% and iFlytek ended 2.7% lower. China Tourism Group Duty Free Corp. shed 2.4%. China Merchants Bank rose 1.75% after guiding for a 6.2% net profit growth in 2023. The benchmark Shanghai Composite Index ended 2.7% lower at 2756.34, the Shenzhen Composite Index declined 4.5% and the tech-heavy ChiNext Price Index slipped 2.8%.

Hong Kong shares closed lower amid subdued sentiment due to a lack of further stimulus from Beijing, said Sonija Li, Maybank's head of retail research. The benchmark Hang Seng Index fell 2.3% to 14961.18, dragged by property, consumer-product and technology stocks. The Hang Seng Properties Index ended at 15133.89, its lowest since March 2009. Chinese property developers led losses, with China Resources Land and Longfor Group dropping 11% each. Haidilao and China Mengniu Dairy shed 6.7% and 5.45%, respectively. The Hang Seng Tech Index declined 3.0% to 3035.47, with Meituan down 4.7% and Baidu losing 3.6%. Shunten International slumped 5.45% after its CEO and COO resigned. China Merchants Bank and Lenovo were among the gainers, rising 0.8% and 0.6%, respectively.

The Nikkei Stock Average rose 1.6% to 36546.95, closing at its highest level since February 1990. Electronics and real-estate stocks led gains as investors await the Bank of Japan's policy meeting outcome due Tuesday. Lasertec gained 4.8% and Sumitomo Realty & Development rose 4.2%. Japanese government bond yields fell across the curve, with the 10-year yield dropping 1.5 basis points to 0.650%. USD/JPY was at 148.08, compared with 148.15 late Friday in New York.

Indian shares ended higher, tracking Wall Street's overnight gains. The benchmark Sensex rose 0.7% to 71683.23 , ending a three-session losing streak. Tech and auto stocks led gainers. Mahindra & Mahindra rose 2.4% and TVS Motor advanced 1.3%. Tech Mahindra gained 2.6% and Tata Consultancy Services was 1.0% higher. Hindustan Zinc rose 1.1% after its fiscal 3Q results. Bank stocks weighed on the market, with IndusInd Bank dropping 3.2% and HDFC Bank down 1.1%. Investors are waiting for Reliance Industries' fiscal 3Q results due after the market close.

Europe

European stocks rose as ongoing Middle East tensions boost crude prices. The Stoxx Europe 600 and DAX gained 0.8%, the FTSE 100 advanced 0.35% and the CAC 40 climbed 0.6%. "Slowly but surely, the buyers have taken control of oil prices," IG analyst Chris Beauchamp writes. "After a wobbly start to the week, crude is back on the up, following weekend reports that suggest the U.S. is now committed to policing the Red Sea for an indefinite period. Tensions in the region remain high and have the potential to drive more upside for oil."

FTSE 100 index finished up 0.35% at 7,487.71 points on Monday in what has been a slow start of the week for European markets. Lifting the index into the green were top risers Entain, Persimmon and JD Sports while London-listed miners were under pressure. "A mixed Asia session which saw Chinese markets fall sharply after a failure to cut loan rates which has served to weigh on commodity prices more broadly," CMC Markets UK analyst Michael Hewson writes in a market comment. The weakness in China has translated into weakness in basic resources with Rio Tinto and Glencore trading lower to close down 1.7% and 3.5%, respectively. Endeavour Mining also fell 3.3% after posting disappointing fourth-quarter results.

North America

The S&P 500 and Dow Industrials ended at fresh highs as U.S. stocks continue to rebound from a shaky start to the year.

DJIA rose 138 points to 38001, the S&P 500 gained 0.2% to 4850 and the Nasdaq added 0.3% to 15360.

Investors are increasingly betting the Fed will keep rates steady next week and at its following meeting, and are closely parsing economic data to help confirm this thesis.

Oil prices rose on geopolitical tensions in the Ukraine and Middle East, though natural gas prices slid on expectations for warmer weather across much of the U.S.