Asian Markets Show Mixed Trend

Asian stock markets are trading mixed on Tuesday, following the lack of cues from Wall Street overnight due to a holiday, on a continued spike in crude oil prices and a firm trend in European markets. Traders also digested Chinese GDP data that showed a stronger than expected pace of expansion of the Chinese economy, which will bode well for the region and for a global economy recovery. Asian stocks ended mixed on Monday.

Investors also continued to track updates about the surge in coronavirus cases across the world, and reacted to earnings reports and other corporate news. The risk sentiment improved following a reduction in the key interest rate by the People’s Bank of China.

The Australian stock market is trading slightly higher in choppy trading on Tuesday, extending the gains in the previous session, with the benchmark S&P/ASX 200 above the 7,400 level, despite the lack of cues from Wall Street overnight, on higher crude oil prices and as traders digested data showing a stronger than expected pace of expansion of the Chinese economy.

Meanwhile, traders remain concerned over the domestic Covid-19 cases, though the daily new cases are on a slight decline, but deaths are increasing. New South Wales reported 29,830 new cases and 36 deaths on Monday and Victoria also reported 20,180 new cases and 22 deaths. Queensland recorded 15,962 new cases and 16 deaths and Tasmania reported 1,310 new cases.

The benchmark S&P/ASX 200 Index is gaining 11.40 points or 0.15 percent to 7,428.70, after touching a high of 7,445.10 earlier. The broader All Ordinaries Index is up 18.00 points or 0.23 percent to 7,757.30. Australian stocks closed modestly higher on Monday.

Among the major miners, OZ Minerals is gaining almost 1 percent, Rio Tinto is edging up 0.4 percent, BHP Group is adding 1.5 percent and Fortescue Metals is advancing more than 1 percent, while Mineral Resources is losing more than 1 percent.

Rio Tinto posted a 5.4% drop in its fourth-quarter iron ore shipments, partly hit by lower demand from its top consumer China.

Oil stocks are mixed. Woodside Petroleum is flat, Santos is edging down 0.4 percent and Origin Energy is losing more than 1 percent, while Beach energy is gaining more than 1 percent.

Among the big four banks, National Australia Bank, Westpac and Commonwealth Bank are edging down 0.2 percent each, while ANZ Banking is flat.

Among tech stocks, Xero is gaining more than 2 percent, Appen is surging 4.5 percent and Afterpay is edging up 0.3 percent, while Zip is losing more than 1 percent and WiseTech Global is edging down 0.2 percent.

Gold miners are mixed. Resolute Mining is losing more than 1 percent and Evolution Mining is edging down 0.3 percent, while Gold Road Resources and Northern Star Resources are adding almost 1 percent each. Newcrest Mining is edging up 0.2 percent.

In the currency market, the Aussie dollar is trading at $0.722 on Tuesday.

The Japanese stock market is significantly higher on Tuesday, extending the gains in the previous session, with the benchmark Nikkei index staying below the 28,600 level, despite the lack of cues from Wall Street overnight, as traders digested data showing a stronger than expected pace of expansion of the Chinese economy. Traders are also awaiting fresh policy signals from the central bank meeting.

Meanwhile, the upside is limited amid the rapid spread of the coronavirus omicron variant. Japan has reported more than 20,000 new daily cases for the fourth straight day, with the nation considering placing 11 prefectures, including Tokyo and its surrounding area, under a COVID-19 quasi-state of emergency to curb the rapid spread.

The benchmark Nikkei 225 Index closed the morning session at 28,574.15, up 240.63 points or 0.85 percent, after touching a high of 28,598.21 earlier. Japanese shares closed notably higher on Monday.

Market heavyweight SoftBank Group is gaining almost 1 percent and Uniqlo operator Fast Retailing is adding almost 4 percent. Among automakers, Honda is edging up 0.1 percent and Toyota is gaining almost 2 percent.

In the tech space, Advantest and Tokyo Electron are gaining almost 1 percent, while Screen Holdings is down almost 1 percent. In the banking sector, Mitsubishi UFJ Financial is edging up 0.5 percent, Sumitomo Mitsui Financial is adding almost 1 percent and Mizuho Financial is gaining more than 1 percent.

The major exporters are higher. Panasonic and Mitsubishi Electric are edging up 0.4 percent each, while Sony is gaining almost 1 percent and Canon is adding almost 2 percent.

Among the other major gainers, Hitachi Construction Machinery is gaining almost 3 percent, while Kawasaki Heavy Industries, Recruit Holdings, Shimizu and Isetan Mitsukoshi are adding more than 2 percent each.

Conversely, Nippon Steel is losing almost 6 percent, while JFE Holdings and Kobe Steel are declining more than 5 percent each.

In economic news, the Bank of Japan will wrap up its monetary policy meeting on Tuesday and then announce its decision on interest rates. The BoJ is widely expected to keep its benchmark lending rate unchanged at -0.10 percent.

In the currency market, the U.S. dollar is trading in the higher 114 yen-range on Tuesday.

Elsewhere in Asia, China, Hong Kong, Singapore and Taiwan are higher by between 0.1 and 0.8 percent each, while New Zealand, South Korea and Indonesia are lower by between 0.1 and 0.2 percent each. The markets in Malaysia are closed in observance of Thaipusam.

On Wall Street, the markets were off on Monday for the Martin Luther King Jr. holiday and will return to action on Tuesday.

Meanwhile, the major European markets closed on a firm note on the day. The U.K.’s FTSE 100 surged up 0.91 percent, Germany’s DAX advanced 0.32 percent and France’s CAC 40 gained 0.82 percent.

Crude oil prices moved modestly higher on Tuesday, with the upside capped by news that the Trans Mountain pipeline returned to normal operations following a two-month disruption. West Texas Intermediate crude for February delivery added $0.48 or 0.57 percent to $84.30 per barrel.