Japan’s Nikkei 225 rises 2%; Asia-Pacific markets trade higher after U.S. stocks surge

Abigail Ng

Asia-Pacific shares traded higher on Tuesday after stocks on Wall Street rallied overnight.

The Nikkei 225 in Japan rose 2.19% in early trade, and the Topix index was 2.44% higher. South Korea’s Kospi

advanced 1.81% on its return to trade after a holiday. The Kosdaq added 2.24%.

MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.71%. In Australia, the S&P/ASX 200

jumped 2.35%. The Reserve Bank of Australia is set to announce its interest rate decision later Tuesday.

Markets in mainland China and Hong Kong are closed for a holiday.

The Dow Jones Industrial Average popped 765.38 points, or nearly 2.7%, to close at 29,490.89. The S&P 500 advanced about 2.6% to 3,678.43. The Nasdaq Composite added nearly 2.3% to end at 10,815.43.

It was the best day since June 24 for the Dow, and the S&P 500′s the best day since July 27.

TICKER	COMPANY	NAME	PRICE	CHANGE	%CHANGE
.N225	Nikkei 225 Index	*NIKKEI	26800.76	584.97	2.23
.HSI	Hang Seng Index	*HSI	17079.51	-143.32	-0.83
.AXJO	S&P/ASX 200	*ASX 200	6612.6	155.7	2.41
.SSEC	Shanghai	*SHANGHAI	3024.39	-16.81	-0.55
.KS11	KOSPI Index	*KOSPI	2200.26	44.77	2.08
.FTFCNBCA	CNBC 100 ASIA IDX	*CNBC 100	7015.67	128.05	1.86

— CNBC’s Tanaya Macheel and Samantha Subin contributed to this report.

South Korea, Japan defense stocks rise following North’s missile test

Shares of South Korean defense companies rose at the open after North Korea launched another missile test.

Hanwha Aerospace rose 3.9% and Korea Aerospace rose 4.64% – both companies manufacture weaponry and military aircrafts.

Japan defense stocks also jumped. Hosoya Pyro-Engineering rose more than 5%, and Mitsubishi Heavy Industries advanced 3.69%.

–Jihye Lee

South Korea’s Naver slips more than 4% on Poshmark deal announcement

Shares of Naver fell in early trade after the South Korean internet giant said Monday it would buy U.S. e-retailer Poshmark for around $1.2 billion.

Naver’s stock dropped 4.65%, compared to a rise of 1.34% on the broader Kospi index.

Poshmark shares jumped around 14% overnight in the U.S. after the announcement.

— Abigail Ng

CNBC Pro: Want a ‘defensive move’ with up to 5% return? Buy this fund, says strategist

It’s been a volatile year for both stocks and bonds, with major Wall Street indexes just ending their worst month since March 2020, and Treasury yields remaining elevated.

However David Dietze, chief investment strategist at Point View Wealth Management, says “pockets of opportunity” still exist.

“Short-term defensive measures probably are warranted,” Dietze told CNBC’s “Street Signs Asia” on Monday, and named his favorite fund to play the market right now.

— Weizhen Tan

Australia’s central bank expected to hike rates by 50 basis points: Reuters poll

A Reuters poll of economists expects the Reserve Bank of Australia to hike its benchmark interest rate by 50 basis points to 2.85%.

RBA’s board members said the case for a slower pace of rate hikes was growing, according to minutes from its Sept. 6 meeting, when it raised its interest rate by 50 basis points.

Analysts at Nomura are expecting the central bank to raise rates by 40 basis points, “to convey the view of RBA nearing the end of upsized hikes.”

Economists at Commonwealth Bank Australia see a higher chance for a 25-basis-point hike than a 50-basis-point hike.

–Jihye Lee

CNBC Pro: Here’s what’s next for stocks, according to Wall Street pros

September is finally behind us, much to the relief of many equity investors who endured a difficult month, with all major U.S. indexes posted steep losses.

With a historically weak month now firmly in the rearview mirror, what is the outlook for stocks as we enter into the fourth quarter of the year?

CNBC Pro combed through the research to find out what Wall Street thinks.

— Zavier Ong

Source : CNBC