Asian shares showed a mixed performance on Tuesday, with Japan's Nikkei 225 index rebounding after a significant drop the previous day. The Bank of Japan's quarterly 'tankan' survey revealed that business confidence among large manufacturers remained steady at 13, indicating a positive outlook for business conditions. This stability is closely watched for insights into the impact of the Bank of Japan's recent interest rate decisions, including the shift from negative rates to a 0.25% short-term rate increase.
Japan also reported a decline in the unemployment rate for August to 2.5%, aligning with market expectations. The Nikkei 225 surged by 1.5% on Tuesday to 38,476.33, supported by a weakening yen against the dollar.
Meanwhile, Australia's S&P/ASX 200 dipped by nearly 0.7% following data showing a 3.1% increase in retail sales for August compared to the previous year, surpassing expectations. Markets in China and South Korea were closed for holidays, with Chinese markets set to reopen on October 7 after the National Day break.
On Wall Street, the S&P 500 reached an all-time high at 5,762.48 on Monday, marking its fifth consecutive winning month and fourth straight winning quarter. The Dow Jones Industrial Average and the Nasdaq composite also posted gains.
Investors are closely monitoring the U.S. economy amid concerns about a potential recession. The Federal Reserve's recent rate cuts aim to stimulate growth, with expectations of further reductions in the upcoming meetings. However, Fed Chair Jerome Powell's comments hinting at more traditional rate cuts led to a rise in U.S. Treasury yields.
In the bond market, the yield on the 10-year Treasury increased to 3.78%. U.S. crude oil prices rose slightly to $68.27 per barrel, while Brent crude, the international benchmark, reached $71.85 per barrel. The euro also saw a slight uptick in trading against the dollar.
