(MENAFN- Daily Forex) Asian shares were largely higher on Tuesday morning, piggybacking on Wall Street's record close after positive economic data boosted U.S. Treasury yields and the dollar. The Institute for Supply Management (ISM) said on Monday that U.S. factory activity rose to 60.8 in September, its highest reading since May 2004, an increase of 2 points since August. Increased construction spending in August also lent support to the positive economic outlook.
The dollar was up on Tuesday morning against a basket of its major trading partners, with the dollar index gaining 0.18 percent to 93.82 .DXY. The dollar was up 0.35 percent against the yen as of 11:40 a.m. HK/SIN, to 113.13 yen. The greenback also saw gains against the euro which was still struggling after the surprise secession vote in Catalonia. The euro was down 0.20 percent to $1.1707.
Japan's Nikkei 225 index gained 0.77 in early trade, helped by the weakened yen. Hong Kong's Hang Seng index was up 1.62 percent just before midday. South Korea's Kospi was up 0.90 percent, but Australia's ASX 200 index bucked the trend by heading down 0.43 percent.
Oil Markets Continue Struggle
for the second consecutive day on Tuesday, erasing the third quarter's record gains after Iraq announced on Monday that exports increased slightly in September from its southern oilfields. OPEC also boosted output in September, contributing further to the supply glut. Middle Eastern oil producers are now concerned that the recent price jump will encourage the United States' shale producers to ramp up activity which will push prices higher.
U.S. WTI futures were down 0.30 percent to $50.43 per barrel while Brent crude futures fell 0.39 percent to $55.90. Analysts predict that if the price continues heading towards $60 per barrel, the U.S. will find validation for increased production efforts.
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