Asian stock markets traded mixed on Tuesday, as a rebound in crude oil prices brought mixed blessings, while a largely anticipated rate cut from the Reserve Bank of Australia (RBA) lifted Australian equities to near seven-year highs.
The RBA unveiled a 25 basis-point interest rate cut at its policy meeting, bringing rates to a fresh record low after holding them at 2.5 percent since August 2013, to prop up an economy hit by falling commodity prices.
"With growth continuing at a below-trend pace, domestic demand growth quite weak and unemployment moving higher, the RBA felt it necessary to cut rates. However, the statement didn't sound as dovish as many would have wanted to reinforce the idea of another rate cut," wrote Stan Shamu, IG market strategist, in a note.
"But given the pressure from other global central banks acting, [another rate cut] wouldn't be completely out of reach," he added.
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Meanwhile, the Reserve Bank of India (RBI) kept its key repo rate at 7.75 percent at its monthly meeting on Tuesday, after lowering rates by a quarter-point three weeks ago.
Gains in oil markets in early Asian trading, after clocking up gains of 11 percent in the prior two sessions, also lifted market sentiment. Brent crude traded at $54.97 a barrel, while U.S. WTI futures were at $49.94 a barrel.
Overnight, U.S. equities closed sharply higher following encouraging news from the euro zone. As a result, the Dow Jones Industrial Average closed up 1.1 percent, while the S&P 500 ended 1.3 percent higher. The Nasdaq Composite added 0.9 percent.