Asian markets rose in early trade, tracking positive overnight cues from the U.S. and Europe. Investors took Italy's rejection of constitutional reforms in their stride and switched their focus back to the outlook for U.S. monetary policy. Oil snapped a four-day gaining streak while gold remained steady around a 10-month low.
U.S. Businesses Grow
U.S. services industry grew at its fastest pace in 13 months, according to a report released by IHS Markit on Monday. Services sector expanded for the ninth straight month, with a reading of 54.6 for the month of November. New businesses continued to grow from a four-month low hit in September.
The data boosted the case of a rate hike at Federal Reserve's December 13-14 meeting, odds of which remain at 100 percent, according to futures rates tracked by Bloomberg.
U.S. equity markets surged, shrugging off the uncertainty arising out of Italy's referendum result. Financial stocks led the gains on the Dow Jones Industrial Average, which rose 0.25 percent to close at a fresh record. The S&P 500 Index and the NASDAQ Composite Index ended with gains of 0.5 and 1 percent respectively.
On Sunday, Italians rejected proposals to reform their constitution, leading to the resignation of Prime Minister Matteo Renzi.
Gold Steady, Oil Remains Above $51
Gold traded around a 10-month low as investors looked for equities and other riskier assets despite Italy's referendum outcome. Prices have fallen the most in three years in November after the U.S. economy showed signs of improvement, raising the prospects of higher interest rates.
Oil took a breather from a 16-month high after rallying almost 15 percent since the surprise output deal from OPEC (Organization of Petroleum Exporting Countries) last week.
OPEC has invited 14 other producing countries to a Saturday meeting in Vienna to discuss further efforts to curb production.
Quiet Tuesday?
The SGX Nifty index was unchanged at 8,171 as of 7:10 a.m. indicating a muted start for Indian equities. Indian shares halted a two-day losing streak as investors took solace in the resilience shown by European equities after Italy's referendum result.
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