Asian stocks extended gains for a second consecutive session on Tuesday, with a bounce in oil and other commodity prices and strong overnight gains in the U.S. and European markets supporting sentiment. While fears of an immediate rate hike by the U.S. Federal Reserve receded, gains were kept in check by lingering concerns over a China-led global economic slowdown.
Shanghai was closed for the National Day holidays until Thursday. Hong Kong's Hang Seng index slipped 22.88 points or 0.10 percent to finish at 21,831.62, reversing early gains.
Japanese stocks rose as negotiators reached a deal on a Pacific trade pact after more than five years of negotiations. Also, the yen remained on the defensive on growing speculation the Bank of Japan might expand its stimulus program to support the flagging economy. While few analysts expect a move at the conclusion of a two-day policy meeting on Wednesday, speculation is rife that the central bank might take more action when it releases updated growth and inflation forecasts on October 30.
The benchmark Nikkei average gained 180.61 points or 1 percent to close at 18,186.10, extending its winning streak to a fifth consecutive session. The broader Topix index closed 0.81 percent higher at 1,475.84. Steelmakers were in demand, with Kobe Steel, JFE Holdings and Nippon Steel and Sumitomo Metal rising 3-4 percent.
Market heavyweight Fast Retailing added 1.7 percent, robot maker Fanuc rallied 2.3 percent and mobile carrier Softbank Corp gained 2.5 percent. Kubota climbed 3.2 percent on reports it plans to expand its farming machinery business in Asia. Hitachi Construction Machinery jumped 3.8 percent and Komatsu rose 2.2 percent. Among those that fell, Pacific Metals, Alps Electric, Bridgestone Corp, Sumco Corp and Kawasaki Kisen Kaisha dropped 1-3 percent.
Australian shares extended gains for the second straight session as the Reserve Bank of Australia left its official cash rate on hold in a widely expected decision, saying the country's currency is adjusting to lower commodity prices. The benchmark S&P/ASX 200 index gained 16.90 points or 0.33 percent to close at 5,167.40, with miners and banks pacing the gainers amid firmer commodity prices, Glencore's 20 percent share increase in London on Monday and expectations of continuing loose Fed policy. The broader All Ordinaries index rose 14.90 points or 0.29 percent to 5,199.
The big four banks closed up between 0.3 percent and 1.1 percent. Mining giant BHP Billiton rose 1.6 percent and Rio Tinto advanced 1.4 percent, while smaller rival Fortescue Metals Group soared 5.9 percent. Shares of Macmohan Holdings climbed 13.4 percent after the mining contractor unveiled a share buyback program with the aim to purchase up to 10 percent of its shares on issue over the next year.
Origin Energy shares slumped 8.9 percent after coming out of a trading halt following an announcement related to a potential capital raising from institutional investors. Oil Search eased 0.3 percent and Woodside Petroleum shed half a percent, while Santos rallied 2.3 percent. Treasury Wine Estates slid 0.3 percent after unveiling fresh cost cuts. Veda Group shares advanced 1.5 percent. The credit information provider has backed a sweetened takeover bid from U.S. rival Equifax that values it at A$2.5 billion.
In economic releases, Australia's trade deficit unexpectedly widened in August to A$3.095 billion, data released by the country's statistics bureau showed, missing expectations for a shortfall of A$2.400 billion following a downwardly revised A$2.792 billion deficit in the previous month.
Seoul shares edged higher, although automakers lost ground amid apprehensions over the Trans Pacific Partnership trade deal, which would lower tariffs and set common standards for 12 economies led by the United States and Japan. The benchmark Kospi average closed up 12.40 points or 0.63 percent at 1,990.65 after rising as much as 1 percent in early trading.
Market heavyweight Samsung Electronics rallied 3.2 percent ahead of its third-quarter earnings guidance to be released early on Wednesday and SK Hynix jumped 5.2 percent, while Hyundai Motor slumped 3.7 percent and its affiliate Kia Motors lost 3.2 percent.
New Zealand shares gained ground after trade negotiators from the twelve countries in the Trans-Pacific Partnership reached an agreement in Atlanta that will help eliminate or sharply reduce most tariffs in a region spanning roughly 40 percent of the world's GDP. The benchmark NZX-50 index rose 37.57 points or 0.67 percent to close at 5,668.11.
Elsewhere, India's Sensex was up 0.6 percent, Indonesia's Jakarta Composite index was rallying 1.7 percent, Malaysia's KLSE Composite was gaining 0.9 percent and Singapore's Straits Times index was up 1.4 percent, while the Taiwan Weighted closed half a percent higher.
U.S. stocks rallied overnight after Friday's gloomy jobs data and signs of slowing service sector growth eased worries about an imminent Federal Reserve interest rate hike. The Dow climbed 1.9 percent and the tech-heavy Nasdaq advanced 1.6 percent, while the S&P 500 gained 1.8 percent, rising for a fifth day in a row for the first time this year.
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