The Japanese Nikkei rose 0.81% to 29,101.33, breaking the 29,000 barrier for the first time since Jan. 6.
MSCI’s broadest index of Asia-Pacific stocks outside Japan rose 0.02%.
Shares in New Zealand fell 0.285% and the Kiwi Dollar gained 0.35% after the country’s central bank announced a fourth consecutive 50 basis point interest rate hike to 3.00%.
Although the rise was in line with expectations, the announcement was described as “definitely more hawkish than expected” by Imre Speizer, head of New Zealand market strategy at Westpac, who underlined the tone of the RBNZ statement. and a 15bp increase in the official discount rate (OCR) to 4.10%.
“Clearly they are a bit more worried about wage inflation and a very tight labor market, that’s an important recent development,” Mr Speizer said.
Australia’s AXJO index fell 0.14% and the Australian dollar hit a new one-week low after second-quarter payroll data showed growth slightly below expectations.
Hong Kong’s Hang Seng index rose 0.2%, while Chinese blue chips fell 0.3%.
Overnight, the Dow Jones Industrial Average gained 0.71% and the S&P 500 0.19% as Home Depot posted better-than-expected sales and Walmart raised its profit forecast.
S&P emini futures were flat in the early hours of trading in Asia.
Investors now see a 41% chance of a third successive 75bp rate hike at the Fed’s next meeting in September, up from 39% the day before. The minutes of the previous meeting will be published later in the day.
US retail data for July will also be released later today as investors watch for further signs of recession.
“Retail sales should have been more resilient as lower prices at the pump improved the purchasing power of the average US household, and Amazon’s Prime Day during the month may also have bargain hunters,” Saxo Bank analysts wrote in a note, while pointing to “modest” consensus expectations of 0.1%.
Ten-year Treasury yields rose slightly and traded at 2.8202%, having earlier erased an overnight rise of 2.8730%.
In commodities, Brent oil futures rose 0.1% to $92.43 a barrel, while U.S. West Texas Intermediate (WTI) crude oil gained 0.22% to $86.72 a barrel. .
Oil prices fell overnight to their lowest level since before Russia invaded Ukraine as markets speculated on Iran’s response to a proposed relaunch of the 2015 nuclear deal, which could increase Iranian oil exports.
Spot gold fell 0.07% to $1,774.40 per ounce, while bitcoin rose 0.11% to $23,990.23. The major cryptocurrency hit a two-month high over the weekend, but has been flat since losing almost 5% on Monday.