Australian markets up ahead of budget

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AFP

Asian stock markets have opened higher following positive trading sessions in the US and Europe.

In Australia, the benchmark S&P ASX 200 has traded higher by 0.76% to 5,282.60 points.

Property-related stocks are among the big gainers. But bank shares ANZ, Westpac and NAB have headed lower.

Interest rates will be the focus in Australia, as the country’s central bank will hold its monthly meeting on interest rates.

The key lending rate in Australia is at a record low of 2%.

The country’s Treasurer Scott Morrison will deliver the federal budget for 2016-2017 later on Tuesday evening.

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Treasurer Scott Morrison will deliver his first budget on Tuesday night

Small tax cuts and spending on health, infrastructure and education have already been foreshadowed or announced.

The budget is also seen as an unofficial election campaign launch. Prime Minister Malcolm Turnbull will dissolve parliament and call an early election on or before 11 May.

Meanwhile, in South Korea the Kospi has edged higher by 0.24% at 1,982.99 points.

China is back from a long weekend and the Shanghai composite index has opened higher by 1% at 2,967.43.

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Investors have brushed aside a private survey which showed a mild contraction in China’s manufacturing activity. The Caixin Purchasing Managers’ Index (PMI) came in at 49.4 in April, compared with 49.7 in March.

A reading below 50 indicates a contraction. The PMI tracks activities in factories and workshops.

The data differs from China’s state figures released at the weekend, which showed a reading of 50.1 for April, compared to 50.2 in March.

In Hong Kong the Hang Seng index has slipped lower, down 1.19% at 20,816.91.

Markets in Japan are shut for three days of national holidays and will re-open on Friday.

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Australian markets up ahead of budget
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