Asian Markets Mostly Higher

Asian stock markets are broadly higher on Wednesday, following largely positive cues overnight from Wall Street and the International Monetary Fund’s rosy view on Asia’s economic outlook. Markets in the region remain cautious amid the surge in coronavirus cases in the region and the possible restrictions on economic activity in several markets. Asian markets closed higher on Tuesday.

The IMF said Tuesday that the Asian economy is expected to expand 7.6 percent in 2021, up from its previous outlook in October last year for an expansion of 6.9 percent. IMF expects Asia’s economy to grow 5.4 percent in 2022.

In the U.S., U.S. Food and Drug Administration on Tuesday announced a temporarily halt on the usage of Johnson & Johnson’s (JNJ) Covid-19 vaccine after six recipients developed a rare blood clotting disorder.

The Australian stock market is modestly higher on Wednesday, after ending the previous session flat, with the benchmark S&P/ASX 200 hovering around the 7,000 mark at near 13-week highs, following strong gains in gold and technology stocks, partially offset by losses in materials, energy and financial stocks. Data released also showed consumer index in Australia surging to a 11-month high in April.

The benchmark S&P/ASX 200 Index is gaining 21.70 points or 0.31 percent to 6,998.60, after touching a new 13-week high of 7,022.70 earlier. The broader All Ordinaries Index is higher by 24.60 points or 0.34 percent to 7,255.60. Australian stocks ended on a flat note on Tuesday.

Among major miners, BHP Group is edging up 0.1 percent, while Rio Tinto is edging down 0.3 percent and Fortescue Metals is losing more than 1 percent.

In the tech space, Appen is gaining more than 1 percent, WiseTech Global is adding almost 3 percent, and Afterpay is up more than 3 percent.

Among the big four banks, ANZ Banking, National Australia Bank and Westpac are losing almost 1 percent each, while Commonwealth Bank is edging down 0.1 percent.

Gold miners are higher after the gold price climbed. Evolution Mining is adding more than 4 percent, while Newcrest Mining and Northern Star Resources are up almost 3 percent each. Resolute Mining is soaring more than 18 percent and Perseus mining is advancing more than 8 percent.

Shares in Resolute mining are skyrocketing after the Ghanaian government has restored the Africa-focussed gold miner’s Bibiani Gold Mine lease. However, it will not be allowed to sell the mine to China’s Chifeng Jilong without permission. The lease was terminated last month.

Among oil stocks, Oil Search is edging up 0.3 percent, while Santos is losing almost 1 percent and Woodside Petroleum is edging down 0.4 percent.

Energy giant Woodside Petroleum has appointed internal candidate Meg O’Neill as its acting chief executive while the board’s search for the next CEO continues. The current CEO Peter Coleman will retire in June.

In economic news, consumer confidence in Australia spiked in April, the latest survey from Wetspac Bank and the Melbourne Institute revealed on Wednesday – jumping 6.2 percent on month to a reading of 118.8. That’s the highest reading for the index since August 2010.

Further, the Reserve Bank of Australia will wrap up its monetary policy meeting on Wednesday and then announce its decision on interest rates, highlighting a busy day for Asia-Pacific economic activity. The RBA is widely expected to keep its benchmark lending rate steady at the record low 0.25 percent.

In the currency market, the Aussie dollar is trading at $0.766 on Wednesday.

The Japanese stock market is lower in choppy trading on Wednesday, reversing the gains of the previous session, with the benchmark Nikkei index above the 29,600 level, as traders are cautious amid the continued surge in coronavirus infections, with daily cases in Osaka breaching the 1,000 mark.

The benchmark Nikkei 225 Index closed the morning session at 29,649.85, down 101.76 points or 0.34 percent, after touching a low of 29,567.18 earlier in choppy trading. Japanese stocks closed higher on Tuesday.

Market heavyweight SoftBank Group is edging down 0.4 percent and Uniqlo operator Fast Retailing is losing more than 1 percent. Among automakers, Honda is edging up 0.1 percent, while Toyota is edging down 0.2 percent.

In the tech space, Tokyo Electron is up almost 1 percent, while Screen Holdings and Advantest are adding more than 1 percent each. In the banking sector, Sumitomo Mitsui Financial and Mitsubishi UFJ Financial are declining almost 1 percent each.

Among the major exporters, Panasonic and Mitsubishi Electric are edging down 0.5 percent each, while Sony is gaining almost 1 percent and Canon is adding almost 2 percent.

Shares in Toshiba are surging almost 7 percent after reports of its embattled Chief Executive Nobuaki Kurumatani steping down as CEO on Wednesday amid declining trust in his leadership both at the company and among investors. He will be succeeded by Chairman Satoshi Tsunakawa.

Among the other major gainers, Rakuten is adding more than 5 percent, while Seiko Epson and Kubota are gaining more than 2 percent each. Z Holdings, CyberAgent, Fujifilm Holdings, Ricoh and Konica Minolta is up almost 2 percent. Nippon Sheet is up more than 1 percent.

Conversely, J. Front Retailing is plummeting almost 9 percent, while T&D Holdings, Toray Industries and Hitachi Zosen are losing almost 4 percent each. Otsuka Holdings is down more than 3 percent, while Isetan Mitsukoshi Holdings and Amada are declining almost 3 percent each.

In economic news, the value of core machine orders in Japan tumbled a seasonally adjusted 8.5 percent on month in February, the Cabinet Office said on Wednesday – coming in at 769.8 billion yen. That badly missed expectations for an increase of 2.8 percent following the 4.5 percent decline in January. On a yearly basis, core machine orders sank 7.1 percent – again missing forecasts for an increase of 2.3 percent following the 1.5 percent gain in the previous month. For the first quarter of 2021, core machine orders are seen lower by 6.0 percent on quarter and 5.2 percent on year.

In the currency market, the U.S. dollar is trading in the higher 108 yen-range on Wednesday.

Elsewhere in Asia, Hong Kong is up 1.3 percent and Indonesia is gaining 0.8 percent, while New Zealand, South Korea and China are all higher by between 0.1 and 0.4 percent each. Malaysia, Taiwan and Singapore are bucking the trend and are lower.

On Wall Street, stocks ended mixed on Tuesday, with investors reacting to the data on consumer price inflation and news about the drug regulators recommending a pause to the rollout of Johnson & Johnson’s Covid-19 vaccine. Investors are also looking ahead to the upcoming earnings announcements from big banks, and a slew of crucial economic data.

Technology stocks gained in strength and lifted the Nasdaq Composite Index up by over 1 percent to a new high. The S&P 500 also posted a new high, while the Dow closed on a negative note.

The major averages are exhibiting a mixed trend. The Dow ended down 68.13 points or 0.2 percent at 33,677.27. The S&P 500 advanced 13.60 points or 0.33 percent to 4,141.59, while the Nasdaq moved up 146.10 points or 1.05 percent to 13,996.10.

Meanwhile, the major European markets closed slightly up on the day. While The U.K.’s FTSE 100 edged up 0.02 percent, Germany’s DAX gained 0.13 percent and France’s CAC 40 moved up 0.36 percent.

Crude oil prices moved higher on Tuesday, lifted by an upward revision in energy demand forecast by OPEC. West Texas Intermediate Crude oil futures for May ended higher by $0.48 or 0.8 percent at $60.18 a barrel.

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