Asian Markets Mostly Higher

Asian stock markets are mostly higher on Wednesday even as U.S. stocks closed little changed overnight. Optimism about more fiscal stimulus and the slowdown in coronavirus infection rates in different parts of the world supported the markets. Nevertheless, investors turned cautious as they digested mixed corporate earnings results.

The Australian market is advancing despite the lackluster cues from Wall Street. Nevertheless, investors turned cautious as they digested mixed earnings results from major Australian companies.

The benchmark S&P/ASX 200 Index is adding 18.90 points or 0.28 percent to 6,840.10, after rising to a high of 6,861.40. The broader All Ordinaries Index is higher by 19.40 points or 0.27 percent to 7,121.50. Australian stocks closed lower on Tuesday.

The major miners are mostly higher. BHP Group is advancing almost 1 percent and Rio Tinto is adding 0.3 percent, while Fortescue Metals is lower by 0.3 percent.

In the banking sector, National Australia Bank is lower by almost 1 percent and ANZ Banking is down 0.6 percent, while Westpac is edging up 0.1 percent.

Commonwealth Bank reported a 10.8 percent decrease in cash net profit from continuing operations for the half-year period, but said it will pay an interim dividend of A$1.50 per share. The bank’s shares are declining more than 1 percent.

Insurance Australia Group reported a first-half loss even as gross written premiums increased and said it will pay a lower interim dividend. Shares of Insurance Australia are rising more than 4 percent.

Oil stocks are also mostly lower even as crude oil prices hit a fresh thirteen-month high overnight. Santos is losing 0.4 percent and Woodside Petroleum is down 0.2 percent, while Oil Search is adding almost 1 percent.

Gold miners are mixed even as gold prices rose for a third straight session overnight. Evolution Mining is advancing almost 2 percent, while Newcrest Mining is down 0.1 percent.

Shares of Crown Resorts are losing more than 3 percent after a report by independent Commissioner Patricia Bergin into money laundering and organized crime links found the company was unfit to hold a Sydney casino license. The report also called for the departure of the company’s CEO and key directors.

In economic news, the Australian Bureau of Statistics said that the total number of building permits issued in Australia climbed a seasonally adjusted 10.9 percent on month in December, standing at 19,537. That was in line with expectations following the 2.6 percent increase in November.

The latest survey from Westpac Bank and the Melbourne Institute showed that consumer confidence in Australia improved in February as their sentiment index rose 1.9 percent to a reading of 109.1. That follows the 4.5 percent drop in January to 107.0.

The Japanese market is modestly lower after recent strong gains and following the lackluster cues from Wall Street. Investors treaded cautiously as they digested mixed local corporate earnings results.

The benchmark Nikkei 225 Index is down 57.00 points or 0.19 percent to 29,448.93, after touching a low of 29368.18 in early trades. Japanese shares rose for a third straight day on Tuesday to close at a fresh 30-year high.

Market heavyweight SoftBank Group is adding 0.2 percent, while Fast Retailing is down 0.5 percent. In the tech space, Advantest is losing more than 2 percent and Tokyo Electron is declining almost 1 percent.

In the banking sector, Sumitomo Mitsui Financial is up 0.3 percent, while Mitsubishi UFJ Financial is edging down 0.1 percent. Among automakers, Honda is gaining more than 5 percent and Toyota is rising almost 2 percent.

Aurora, a startup that acquired Uber Advanced Technologies Group, has entered into a deal with Toyota and auto-parts supplier Denso to build and deploy self-driving cars. Shares of Denso are advancing more than 1 percent.

Honda Motor reported a 144 percent surge in profit for the third quarter on a slight increase in sales revenue and raised its financial outlook for the full year as well as its forecast for dividends.

Nissan Motor reported a net loss for the first nine months of the year, but trimmed its loss outlook for the full year. The automaker’s shares are gaining almost 5 percent.

The major exporters are mostly higher despite a slightly stronger yen. Panasonic is advancing more than 1 percent, Canon is adding almost 1 percent and Sony is up 0.2 percent, while Mitsubishi Electric is declining more than 1 percent.

Among the other major gainers, Sumitomo Osaka Cement is gaining more than 7 percent, Sumco Corp. is higher by more than 5 percent and Fujifilm Holdings is advancing almost 5 percent.

Conversely, Taiheiyo Cement and Japan Tobacco are losing more than 7 percent each, while Nexon Co. is lower by almost 7 percent and Yokogawa Electric is declining more than 5 percent.

On the economic front, the Bank of Japan said that producer prices in Japan were up 0.4 percent on month in January, in line with expectations following the 0.5 percent monthly increase in December. Export prices were up 0.9 percent on month and 1.4 percent on year on a contract currency basis last month, the bank said, while import prices rose 2.3 percent on month and sank 5.1 percent on year.

In the currency market, the U.S. dollar is trading in the upper 104 yen-range on Wednesday.

Elsewhere in Asia, Hong Kong is rising more than 1 percent and Shanghai is adding almost 1 percent, while South Korea, Indonesia and Malaysia are also higher. Meanwhile, Singapore and New Zealand are modestly lower. Taiwan remains closed for the Lunar New Year holidays.

On Wall Street, stocks closed little changed on Tuesday in a lackluster session as traders took a breather following the recent strong gains. However, selling pressure was relatively subdued as traders worried about missing out on further upside. Optimism about more fiscal stimulus also helped support the markets along with the recent slowdown in coronavirus infection rates. House Democrats unveiled a proposal providing $1,400 stimulus checks to individuals making up to $75,000 a year and couples who earn up to $150,000 a year.

While the Nasdaq crept up 20.06 points or 0.1 percent to 14,007.70, the Dow edged down 9.93 points or less than a tenth of a percent to 31,375.83 and the S&P 500 slipped 4.36 points or 0.1 percent to 3,911.23.

The major European markets also finished on opposite sides of the unchanged line on Tuesday. While the German DAX Index fell by 0.3 percent, the U.K.’s FTSE 100 Index and the French CAC 40 Index both inched up by 0.1 percent.

Crude oil futures extended gains to a seventh straight session on Tuesday amid easing worries about the outlook for energy demand. WTI crude for March rose $0.39 or about 0.7 percent to $58.36 a barrel, hitting a fresh 13-month high.