Investing.com– Most Asian stocks rose on Tuesday, tracking an overnight rally on Wall Street as markets cheered the prospect of lower U.S. interest rates before a key address from Federal Reserve Chair Jerome Powell later this week.
But Chinese markets lagged their regional peers after the People’s Bank kept its benchmark loan prime rate unchanged as expected, disappointing some traders holding out for more surprise cuts from the central bank.
Other Asian markets were buoyed by a positive lead-in from Wall Street, as growing optimism over an interest rate cut in September saw investors pile back into equities, especially heavyweight technology stocks.
U.S. stock index futures rose slightly in Asian trade. Focus this week is squarely on an address by Powell at the Jackson Hole Symposium on Friday, where he is expected to provide more cues on the bank’s plans to begin cutting rates.
Japan’s Nikkei near 3-week high, Seven & i slips
Japanese stocks were the best performers in Asia, with the Nikkei 225 index rising 1.8% and coming in sight of a three-week high. The TOPIX index added 1.2%.
The Nikkei was boosted chiefly by strength in heavyweight technology stocks, which rose tracking strength in their U.S. peers.
Convenience store operator Seven & i Holdings Co., Ltd. (TYO:3382) was an exception among Japanese stocks, falling over 6% as traders locked-in profits from Monday’s rally. The stock surged over 20% on Monday following reports that Canada’s Alimentation Couche Tard Inc (TSX:ATD) had approached Seven & i for a takeover.
