A walker and runner pass the Reserve Bank of Australia (RBA) building, during the partial coronavirus lockdown, in Sydney, Australia, Monday, May 18, 2020.
David Gray | Bloomberg | Getty Images
Asia-Pacific markets rebounded on Tuesday with Wall Street rising overnight, as investors awaited the Reserve Bank of Australia's interest rate decision.
The Reserve Bank of Australia is expected to keep interest rates at 4.35%, but investors will be watching the language used in the monetary policy statement.
In a preliminary note, ING stated that “broader inflation is heading in the wrong direction, and inflation is broad-based.” Australia's headline inflation rate rose to 3.8% in April, from a low of 3.4% in December 2023.
“Above all, we need to see month-on-month inflation rise at a much slower pace, otherwise inflation will be further derailed during the second half of the year,” analysts add.
Australia's S&P/ASX 200 rose 0.92% ahead of the Reserve Bank of Australia's decision.
Japan Nikki 225 The Topix rose 0.83% after falling nearly 2% on Monday, while the Topix rose 0.48%.
Reuters reported on Tuesday that Bank of Japan Governor Kazuo Ueda told the country's parliament that the central bank may raise interest rates in July, depending on economic data available at that time.
South Korea Cosby The index rose 0.84%, led by gains in shares of chipmakers Samsung Electronics and SK Hynix, which rose about 2.3% and 3%, respectively.
Automaker Hyundai also set a new record, gaining about 3.05% on news that it plans to list its Indian unit in Mumbai.
Hong Kong Hang Seng Index Mainland China's CSI 300, -0.17%, fell 0.15%.
Overnight in the US, the S&P 500 rose to close at a new record high as Wall Street looked to build on last week's gains.
The index rose 0.77% to close at 5,473.23, while the Nasdaq Composite rose 0.95%. The Dow Jones Industrial Average rose 0.49%, snapping a four-day losing streak.
CNBC's Samantha Sobin and Tanaya Machel contributed to this report.
