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RBA decision, S&P record high

A pedestrian and jogger pass the Reserve Bank of Australia (RBA) building, during a partial lockdown imposed due to the coronavirus, in Sydney, Australia, on Monday, May 18, 2020.

David Gray | Bloomberg | Getty Images

Asia-Pacific markets rebounded on Tuesday as Wall Street rallied overnight, with investors assessing the Reserve Bank of Australia’s interest rate decision.

The RBA held its benchmark interest rate at 4.35% for its fifth straight meeting, saying that inflation “remains above target and is proving persistent.”

The RBA also noted that the economic outlook remained “uncertain,” with recent data signaling that achieving the inflation target was unlikely to be smooth.

Australia’s S&P/ASX 200 gained 1.01% after the decision, ending at 7,778.1.

Japan’s Nikkei 225 rose 1% to close at 38,482.11 after plunging almost 2% on Monday, while the Topix ended 0.58% higher at 2,715.76.

On Tuesday, Reuters reported that Bank of Japan Governor Kazuo Ueda told the country’s parliament that the central bank could raise rates in July, depending on the economic data available at the time.

Japanese automaker Toyota has re-elected Akio Toyoda as its board chairman, disregarding two proxy advisers’ recommendation to vote against his re-election.

South Korea’s Kospi climbed 0.72% to 2,763.92, led by gains in chipmakers Samsung Electronics and SK Hynix, which rose about 2.18% and 5.16%, respectively. The small-cap Kosdaq ended the day flat.

Automaker Hyundai also hit a fresh record, gaining about 1.62% on news that it plans to list its India unit in Mumbai.

Hong Kong’s Hang Seng index was lower by 0.11%, while mainland China’s CSI 300 rose 0.27% to end at 3,545.59.

Overnight in the U.S., the S&P 500 rose to close at a fresh record as Wall Street looked to build on last week’s gains.

The index added 0.77% to finish at 5,473.23, while the Nasdaq Composite surged 0.95%. The Dow Jones Industrial Average added 0.49%, to snap a four-day losing streak.

—CNBC’s Samantha Subin and Tanaya Macheel contributed to this report.

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