Asia markets rise as Wall Street rallies and Treasury yields ease

Confidence among large Japanese manufacturers was subdued in October, according to the Reuters Tankan survey, which measures business sentiment among large Japanese companies.

The Reuters poll, which tracks the Bank of Japan’s closely watched tankan quarterly survey, saw manufacturers’ mood flat at +4 index points in October, although it was expected to inch up over the coming three months.

The services-sector mood edged up, as upbeat domestic demand helped partly offset the hit to the economy from global headwinds.

The service-sector index rose to +24 in October, slightly improving from +23 from the previous month.

— Shreyashi Sanyal

Investors have to contend with an increasingly volatile market — wider geopolitical risks from the Israel-Hamas conflict are adding to the existing uncertainty from rising bond yields and higher rates.

Some analysts recommend buying dividend stocks as a way around it.

For those interested in that strategy, CNBC Pro screened for stocks with safe and high dividend yields.

CNBC Pro subscribers can read more here.

— Weizhen Tan

Goldman Sachs’ chief U.S. equity strategist David Kostin does not expect the Israel-Hamas conflict will have a huge impact on markets.

“It’s a tragedy from a human point of view,” Kostin told CNBC’s “Squawk on the Street” on Tuesday. “But the idea fundamentally, we’ll be getting earnings for the last three months, which is obviously backward looking. And the prospects looking forward are probably more domestically facing issues that are sort of pertinent to a lot of portfolio managers.”

“So less likely to have a big impact on a sustainable basis,” Kostin said.

Still, the strategist expects other risk factors will continue to weigh on stocks, citing higher yields and oil prices that could impede multiple expansion. He expects the S&P 500 will end 2023 around the 4,300 level, which is a little lower than where the broader index was last trading at about 4,380. He added cash is attractive.

However, he does not anticipate a recession on the horizon.

— Sarah Min

A number of winners and losers have emerged from recent developments in the battery industry, according to analysts from Goldman Sachs, as it forecasts a “more rapid decline” in prices.

There are a number of stocks it expects to benefit, including one that it expects to soar.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

Some travel-related stocks bounced back on Tuesday after selling off during the previous session amid a spike in oil prices and as the conflict unfolded between Israel and designated terrorist group Hamas.

Shares of United Airlines, Delta Air Lines and American Airlines gained at least 3%. The stocks sold off by more than 4% each during Monday’s session amid a slew of flight cancelations coming in an out of the country. JetBlue Airways popped 3.6%, while Southwest Airlines added more than 2%.

Cruise stocks Carnival and Royal Caribbean rose 3.1% and 2.7%, respectively. Hotel stocks Marriott and Hilton gained about 3% each.

— Samantha Subin

The consumer outlook for where inflation is headed worsened slightly in September, according to a New York Federal Reserve survey released Tuesday.

Expectations for inflation a year from now increased to 3.7%, up 0.1 percentage point from August, the survey showed. On a three-year basis, the outlook rose to 3%, up 0.2 percentage point. That came even though the outlook for gas, medical care and rent all declined.

Also in the survey, the expectation for the cost of education increase decelerated, down to 5.8% from 8.2%, the biggest one-month decline in the survey’s history.

—Jeff Cox

The Nasdaq 100 crossed above the 50-day moving average level of 15,082.36 Tuesday morning, marking the first time it traded above the level on an intraday basis since Sep. 15. It has not closed above the 50-day moving average since Sep. 14.

Shares of Tesla, Amazon, PepsiCo and Nvidia are higher as of Monday morning and are having the most positive point impact on the overall index.

— Hakyung Kim, Gina Francolla