Australian shares rose in early trade on Tuesday, likely fuelled by an improvement in investor sentiment around ongoing negotiations between the United States and China.
The benchmark ASX 200 rose 0.21%, with the energy subindex adding 0.57% and materials up by 0.49% as major miners gained. Shares of Rio Tinto were up 0.92%, Fortescue gained 0.84% and BHP added 0.34%.
Japanese markets are closed for a public holiday.
The session in Asia follows overnight gains on Wall Street where the S&P 500 notched its first close above 3,000 since Sept. 18.
“Fuelling the positive mood music have been comments from President (Donald) Trump’s chief economic adviser Larry Kudlow saying that while down to Trump, he sees the possibility of taking off the threatened December tariff increases, as China requested, if the trade talks go well,” Ray Attrill, head of foreign-exchange strategy at the National Australia Bank, wrote in a morning note.
Kudlow made his comments on Fox Business Network. At the same time, Commerce Secretary Wilbur Ross also told Fox Business that it was more important for the two sides to have a “proper deal” instead of an exact date when it gets signed.
Trump and Chinese President Xi Jinping are set to participate in the Asia-Pacific Economic Cooperation meetings in Chile during mid-November, where many are anticipating a partial trade deal to be signed between the two countries.
Elsewhere, U.K. Prime Minister Boris Johnson was prevented from holding an important vote on the Brexit withdrawal deal he recently agreed with Brussels. His move to hold that vote on Monday was rejected by House Speaker John Bercow as it was not parliamentary convention to repeatedly ask the same questions to politicians.
“This decision means that in order to get a deal the government will have to try to pass the full Withdrawal Agreement Bill,” analysts at ANZ Research wrote in a note, adding the legislation will now be introduced in the lower house of parliament for a vote before it makes its way to the upper house.
Johnson has also grudgingly asked for an extension to the deadline for the U.K.’s departure from the European Union, but EU leaders don’t necessarily have to accept it.
The British pound wavered near the $1.30 level, trading around $1.2967 on Tuesday morning Asia time.
The U.S. dollar index, which measures the greenback against a basket of its peers, last traded at 97.328. The Japanese yen changed hands at 108.60 per dollar while the Australian dollar traded at $0.6866.