Asia-Pacific Markets Set for Higher Open; Japan Trade in Focus

The Asia-Pacific markets are poised for a higher open on Tuesday, following a strong performance on Wall Street. The Dow Jones Industrial Average reached a record close, buoyed by a robust start to the earnings season. Investors in the Asia-Pacific region will be assessing trade data out of Japan and job numbers from Australia, as they consider their next moves.

Japan's Nikkei 225 futures pointed to a higher open for the market, with the futures contract in Chicago at 39,570 and its counterpart in Osaka at 39,470. This follows a 0.42% gain in the benchmark index on Monday. Japan's exports are expected to grow 0.5% year-over-year in September, down from a revised rate of 5.6% in August. Meanwhile, imports are expected to have grown 3.2% in September, compared to 2.3% the month prior.

Australia's S&P/ASX 200 rose 0.88% in early trading, as investors awaited the release of the country's unemployment rate for the month of September. The unemployment rate is expected to remain unchanged from August at 4.2%.

Hong Kong's Hang Seng index futures were at 20,482, higher than the HSI's last close of 20,286.85. The Hang Seng index gained 0.38% on Monday.


Overnight in the U.S., the Dow Jones gained 337.28 points, or 0.79%, to end at 43,077.70. The S&P 500 added 0.47% to 5,842.47, while the Nasdaq Composite jumped 0.28% to close at 18,367.08.

Investors will also be keeping an eye on the global biotech sector, as nine healthcare stocks have more than doubled this year and yet have more than 100% upside potential, according to analysts. Additionally, Barclays has named a raft of global stocks for investors to consider buying before the end of the year, naming "conviction stock ideas with catalysts."


As the third-quarter earnings season continues, analysts have finally begun lowering the bar for their expectations, according to Strategas. The firm noted that technology stocks were the biggest contributor to earnings growth, while energy was the biggest detractor.

Despite stocks trading near all-time highs, UBS says this is no time to cash out. The firm anticipates that the macroeconomic and earnings environments will remain favorable, supporting staying invested in equities. However, the bank believes economic growth will slow from here, thereby recommending investors stay selective and focused on "quality companies with strong balance sheets and consistent earnings."


In conclusion, the Asia-Pacific markets are set for a higher open on Tuesday, as investors assess trade data out of Japan and job numbers from Australia. The positive market sentiment, driven by strong performances on Wall Street, is likely to continue in the region. However, investors should remain vigilant and selective in their investments, as the global economic landscape evolves.