Asian Markets Mixed In Cautious Trades

Asian stock markets are mixed in cautious trading on Thursday, following mixed cues overnight from Wall Street. The markets received support from crude oil prices offset by weakness in financial and technology stocks. Asian markets closed mostly higher on Wednesday

Though the markets are upbeat after the International Monetary Fund’s rosy view on Asia’s economic outlook, traders continue to be worried amid the surge in coronavirus cases in the region and restrictions in economic activity in several markets.

The Australian stock market is higher in choppy trading on Thursday, extending gains of the previous session, with the benchmark S&P/ASX 200 hovering above the 7,000 mark at around its 13-month highs, as the market digests better-than-expected jobless rate data. The market is weighed down by gold miners, technology and financial stocks, offsetting gains in materials and energy stocks.

The benchmark S&P/ASX 200 Index is gaining 7.80 points or 0.11 percent to 7,030.90, after touching a high of 7,034.20 earlier. The broader All Ordinaries Index is up 12.10 points or 0.17 percent to 7,292.70. Australian markets ended higher on Wednesday.

Among major miners, BHP Group is gaining more than 2 percent, while Rio Tinto and Fortescue Metals are adding almost 2 percent each.

Oil stocks are higher after crude oil prices jumped overnight. Oil Search is gaining almost 2 percent, while Santos and Woodside Petroleum are adding more than 1 percent each. Beach Energy is up more than 3 percent.

Among Tech stocks, Appen, Xero and Afterpay are losing almost 1 percent each, while WiseTech Global is adding more than 3 percent.

Among the big four banks, Westpac, ANZ Banking, Commonwealth Bank and National Australia Bank are all losing almost 1 percent each.

Gold miners are lower after gold price tumbled. Evolution Mining is declining almost 5 percent, Northern Star Resources is losing more than 2 percent, Newcrest Mining is down more than 1 percent and Gold Road Resources is declining almost 2 percent. Resolute Mining is losing more than 3 percent.

In economic news, the jobless rate in Australia came in at a seasonally adjusted 5.6 percent in March, the Australian Bureau of Statistics said on Thursday. That was lower than expectations for 5.7 percent and down from 5.8 percent in February. This is the lowest jobless rate since March 2020. The Australian economy added 70,700 jobs last month – far surpassing forecasts for the addition of 35,000 jobs following the increase of 88,700 jobs in February.

In the currency market, the Aussie dollar is trading at $0.772 on Thursday.

The Japanese stock market is modestly higher after early losses on Thursday, recouping the losses of the previous session, with the Nikkei 225 hovering below the 29,700 level, after the after BoJ Governor Haruhiko Kuroda provided a cautiously optimistic view of the economy, saying it would continue to improve as robust global demand lifts business sentiment.

However, traders continue to be worried of the restrictions in economic activity amid the recent spike in coronavirus cases, with Japan reporting more than 4,000 new cases on Wednesday as the highly contagious variants drive a fourth wave of infections.

The benchmark Nikkei 225 Index closed the morning session at 29,657.66, up 36.67 points or 0.12 percent, after touching a high of 29,787.66 in early trades. Japanese shares ended lower on Wednesday.

Market heavyweight SoftBank Group is gaining almost 2 percent and Uniqlo operator Fast Retailing is edging up 0.4 percent. Among automakers, Honda is adding almost 2 percent and Toyota is gaining almost 1 percent.

In the tech space, Advantest is losing almost 2 percent, Screen Holdings is declining more than 2 percent and Tokyo Electron is down more than 1 percent. In the banking sector, Mitsubishi UFJ Financial and Sumitomo Mitsui Financial are gaining more than 2 percent each.

The major exporters are mostly higher. Mitsubishi Electric and Sony are gaining almost 1 percent each, while Canon is edging up 0.2 percent and Panasonic is adding almost 2 percent.

Among the other major gainers, Nippon Yusen is adding more than 5 percent, while Seven & I Holdings and Sumitomo Metal Mining are up almost 4 percent each. Kawasaki Kisen Kaisha is gaining almost 4 percent, while Mitsui Mining & Smelting and Nippon Steel are adding more than 3 percent each.

Conversely, J. Front Retailing is losing almost 3 percent, while CyberAgent and Casio Computer are down more than 2 percent each.

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

Elsewhere in Asia, Shanghai is losing 1 percent, while New Zealand and Hong Kong by about 0.7 percent each. Malaysia, Taiwan, Singapore, Indonesia and South Korea are all advancing between 0.1 and 0.1 percent each.

On Wall Street, stocks came under pressure over the course of the trading day on Wednesday after moving to the upside early in the session, as the sharp sell-off in the largest bitcoin exchange Coinbase offset mostly positive earnings from the likes of Goldman Sachs, Wells Fargo and JPMorgan Chase on the first day of the earnings season.

The Nasdaq slumped 138.26 points or 1 percent to 13,857.84 and the S&P 500 also slid 16.93 points or 0.4 percent to 4,124.66 after reaching a new record intraday high in early trading. On the other hand, the Dow pulled back well off its best levels of the day but still closed up 53.62 points or 0.2 percent at 33,730.89.

Most European stocks also moved to the upside on the day. The U.K.’s FTSE 100 Index advanced by 0.7 percent and the French CAC 40 Index rose by 0.4 percent, while the German DAX Index bucked the uptrend and dipped by 0.2 percent.

Crude oil futures spiked on Wednesday, buoyed by an upward revision in the global oil demand forecast by the International Energy Agency. West Texas Intermediate Crude oil futures for May jumped $2.97 or 4.9 percent at $63.15 a barrel, the highest settlement in four weeks.

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