Overnight on Wall Street, Chinese property listing websites SouFun and E-House extended their share price gains.
The optimism also fed into Chinese stocks on Tuesday's trading, with the Hang Seng China Enterprises Index (HSCEI) leading gains in the region, jumping 2.4% to a six-month high of 10,605.22.
The Shanghai Composite Index climbed its most in a month, up 1% to 2,075.48.
Last week, China’s housing prices data for June showed a slowing property sector as prices dipped for a second straight month.
This fuelled some speculation that restrictions on housing purchases could be loosened further and extended to more cities. A boost in the property sector would typically also lift related industries such as construction and commodities.
One upcoming data point to watch tomorrow will be HSBC China Manufacturing PMI estimates for July. An improvement from the previous month is expected with a reading of 51, which will be another support for Chinese stocks to rise further and positive for AUD/USD.
Ahead of the Singapore Open
While Joko Widodo has been declared the winner of Indonesia’s presidential elections, his rival Prabowo Subianto has contested the results. Prabowo’s move, though widely expected, drew a negative market reaction yesterday, where the Jakarta Composite lost 0.85% and the rupiah dropped 0.22% against the greenback.
Investors will be watching closely on the extent of Prabowo’s pursue as he claims fraud during the electoral process.
US earnings have been coming in pretty strong, with Apple’s Q3 results the latest to beat market expectations thanks to strong iPhone results. Investor sentiment is likely to be lifted by the improving corporate outlook, and outweigh global macro concerns.