SINGAPORE — Shares in the Asia-Pacific traded higher as investors look ahead to the Reserve Bank of Australia’s rate decision.
Hong Kong’s Hang Seng index gained 1.18% in early trade, with the Hang Seng Tech index rising 1.57%.
The Nikkei 225 in Japan gained 0.9%, while the Topix index rose 0.45%.
South Korea’s Kospi increased 1.48%, and the Kosdaq advanced 3.02%.
In Australia, the S&P/ASX 200 was 0.18% higher.
The Reserve Bank of Australia is expected to raise interest rates by 50 basis points later today, a Reuters poll predicted.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.71%.
Elsewhere in the region, South Korean data released Tuesday showed the consumer price index in June rose 6% compared with the same period a year ago. That is slightly higher than the expected 5.9% increase and the fastest annual rise since November 1998, according to Reuters.
“Price pressures and a hawkish U.S. Fed, at a time when South Korea’s balance of payments is under pressure, strengthens the case for a 50bp rate hike at the [Bank of Korea’s] meeting on 13 July,” ANZ economist Krystal Tan wrote in a note on Tuesday.
Japan’s services activity expanded at the fastest pace since October 2013, according to the final au Jibun Bank Japan Services Purchasing Managers’ Index. The print rose to 54, compared to 52.6 in May.
The 50-point mark separates growth from contraction on a monthly basis.
China’s service sector activity also grew, according to the Caixin services purchasing managers’ index. The index rose to 54.5 in June compared to 41.4 in May as Covid measures were eased.
U.S. markets were closed overnight for a holiday.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 105.178.