India’s Sensex is expected to gain on Tuesday as investor sentiment is likely to rise following indications of progress in talks between US President Barack Obama and the Congress leaders to reach an agreement to avert the fiscal cliff.
Markets players are expected to be encouraged to note that in the US, Democrats and Republicans are advancing in their agreement to reach a middle ground to prevent the scheduled rise in tax rates and spending cuts from plunging the US economy into recession early next year.
On Tuesdday, Japan's Nikkei Stock Average was up 0.98 percent, or 96.42 points, to 9925.30. Among major gainers were Sharp Corp (9.63 percent), Ricoh Co Ltd (7.26 percent) and Taisei Corp (4.88 percent).
Hong Kong's Hang Seng marginally gained 0.08 percent, or 18.27 points, to 22537.03. Among major gainers were Sands China Ltd (1.33 percent) and Kunlun Energy Co Ltd (1.28 percent).
South Korea’s Kospi Composite Index rose 0.11 percent, or 2.11 points, to 1985.18. Shares of Samsung Electronics Co Ltd fell 0.27 percent and shares of LG Electronics Inc were down 0.55 percent.
On Monday, the US stocks rose as investor confidence turned positive amid reports that the Congress leaders are getting closer to finalize on a deal to avoid the fiscal cliff.
Meanwhile, according to the data released Monday by the Federal Reserve Bank of New York, NY Empire State Manufacturing Index, which rates the relative level of the general business conditions in New York state, showed a reading of -8.1 in December, compared to -5.2 in November. The Dow Jones Industrial Average rose 0.76 percent, the S&P 500 Index was up 1.19 percent and the Nasdaq Composite Index advanced 1.32 percent.
European markets were mixed on Monday as investors continued to be watchful amid revival of concerns of debt crisis affecting the euro zone. London's FTSE 100 was down 9.61 points, Germany's DAX 30 index rose 8.47 points and France's CAC 40 fell 5.18 points.
On Monday, the Sensex fell 0.38 percent to 19244.42 at the close. The overall market breadth was positive with 1540 advances against 1350 declines. The BSE's Midcap Index gained 0.59 percent to 7040.47 and Smallcap Index rose 0.46 percent to 7387.33.
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