Asia-Pacific shares traded higher on Tuesday after stocks on Wall Street rallied overnight.
The Nikkei 225 popped 776.42 points, or 3%, to 26,992.21.
Shares of South Korean defense companies rose at the open after North Korea launched another missile test.
Hanwha Aerospace rose 3.9% and Korea Aerospace rose 4.6% – both companies manufacture weaponry and military aircrafts.
Japan defense stocks also jumped. Hosoya Pyro-Engineering rose more than 5%, and Mitsubishi Heavy Industries advanced 3.7%.
The Reserve Bank of Australia said its rate hike of 25 basis points will “help achieve a more sustainable balance of demand and supply” in the nation’s economy.
The central bank said it expects to continue increasing rates over the period ahead.
It also noted that Australia’s unemployment rate is at its lowest in almost 50 years and said an increase in the rate is expected with slowing economic growth.
In other markets
Markets in mainland China and Hong Kong were closed for holiday.
In Singapore, the Straits Times Index regained 31.81 points, or 1%, to 3,138.90.
In Taiwan, the Taiex recaptured 276.04 points, or 2.1%, to 13,576.52
In Australia, the ASX 200 surged 242.42 points, or 3.8%, to 6,699.29.
In New Zealand, the NZX 50 restocked 130.58 points, or 1.2%, to 11,090.03.
