Asian stocks jump to 10-year highs as risk-on sentiment recovers

Asian markets traded near 10-year highs on Tuesday as sentiment continued to improve following new sanctions against North Korea and as Wall Street marked a strong first session.

Australia ASX +31.30 +0.54% 5,806.40 CLOSED

Shanghai Comp -2.80 -0.08% 3,373.62 CLOSED

Hang Seng Index -9.40 -0.03% 27,945.73 OPEN

Nikkei 225 +230.85 +1.18% 19,776.62 CLOSED

TSEC 50 Index +38.19 +0.36% 10,610.35 CLOSED

Top three US stock indexes ended in green territory on Monday, with the Dow, the S&P and the Nasdaq Composite rising above 1.00 percent. The upward impulse was provided by a surge of insurance stocks as damages of hurricane Irma seem to be smaller-than-expected.

The Dow Jones Industrial Average was up to 22,055, while the S&P 500 posted a 1.13 percent gain. The Nasdaq Composite closed at 6432.26.

As winds slowed down to 35 miles per hour from an initial hit of nearly 130 miles per hour, Irma has now been downgraded to a tropical depression. However, authorities warned that this fact should not be taken lightly and it could still be life-threatening.

While initial forecasts from the insurance industry previewed losses of $65 billion, revised estimates showed that actual numbers are likely to be tens of billions lower.

Market players were also paying close attention to new developments in the Korean crisis.  Overnight, the United Nations Security Council unanimously voted a new package of economic sanctions against North Korea in response to the nuclear test conducted on September 3.

The 15-member council worked out a US draft resolution that includes a total ban on North Korean textiles, which represents about $750 million in revenue per year.

Also, the document imposes a ban on natural gas and condensates, a cap on crude exports and refined petroleum products of 2 million barrels per year.

"If it agrees to stop its nuclear program, it can reclaim its future ... if North Korea continues its dangerous path, we will continue with further pressure," said US Ambassador Nikki Haley

Ahead in the day, traders will be pending on the JOLTs job openings for July due at 14:00 GMT.

Fort Financial Services