Asian Stock Market: Nikkei soars on positive market mood, DXY turns subdued, oil eyes $85.00

• Asian stocks are following the footprints of S&P500 amid soaring market mood.
• Japanese investors have shrugged off uncertainty over escalating Japan-North Korea tensions.
• Oil prices are marching towards $85.00 ahead of the OPEC+ meeting on production cuts.

Markets in the Asian domain have surged firmly following the footprints of Wall Street. S&P500 displayed a stellar performance on Monday as the US dollar index (DXY) shifted into a negative trajectory. The DXY is hovering around weekly lows at 111.47 and is expected to surrender the same sooner.

At the press time, Japan’s Nikkei225 soared 2.80%. Meanwhile, Chinese markets are closed for the entire week and Hong Kong markets are closed for today on account of the Double Ninth festival.

Japanese markets are displaying a stellar performance despite the ongoing Japan-North Korea tensions after North Korea tests ballistic missiles near the Japanese region.

In retaliation to that, Japan's Prime Minister Fumio Kishida cited the launch as ‘violent behavior’. While Japan’s defense minister Yasukazu Hamada has cleared that Tokyo would not rule out any options to strengthen its defenses including "counterattack capabilities", reported BBC news.

Outside Tokyo, the Reserve Bank of Australia (RBA) hiked its Official Cash Rate (OCR) by 25 basis points (bps). As per the estimates, RBA Governor Philip Lowe was expected to hike OCR by 50 bps consecutively for the fifth time. It seems that the RBA has preferred to keep along with the growth projects along with fighting the mounting inflation.

On the oil front, oil prices are expected to hit the critical hurdle of $85.00 as expectations for production cuts announcement by OPEC+ are soaring. In order to stabilize the oil prices, the oil cartel will trim its production cuts. The announcement is majorly expected to delight Russia as the nation is offering oil at cheaper rates to countries like India and China.