Bargain Hunting Pushes Asian Markets Mostly Higher

Asian stock markets are mostly higher on Wednesday, following the mixed cues overnight from Wall Street, as some traders looked to pick up stocks at reduced levels after the recent sell-off in global markets. Traders also are wary about persistent inflation, higher interest rates and the outlook for the global economy. Asian Markets closed mixed mostly lower on Tuesday.

Traders remain cautious ahead of the release of inflation data from the U.S. and China. The latest snapshot of inflation could impact expectations regarding how aggressively the Federal Reserve plans to raise interest rates.

The Australian stock market is slightly lower on Wednesday, extending the losses in the previous three sessions, with the benchmark S&P/ASX 200 staying above the 7,000 mark, following the mixed cues overnight from Wall Street, with traders remaining cautious ahead of the release of inflation data from the U.S. and China. Rising interest rates, persistent inflation and fears of a global economic slowdown are also weighing on market sentiment.

The benchmark S&P/ASX 200 Index is losing 8.10 points or 0.12 percent to 7,043.10, after hitting a low of 6,991.80 earlier. The broader All Ordinaries Index is down 5.10 points or 0.07 percent to 7,280.10. Australian stocks ended significantly lower on Tuesday.

Among major miners, OZ Minerals is losing almost 2 percent and Rio Tinto is down almost 1 percent, while Fortescue Metals, Mineral Resources and BHP Group are slipping more than 1 percent each.

Oil stocks are mostly lower. Woodside Petroleum is losing more than 1 percent, Origin Energy is edging down 0.2 percent and Santos is slipping almost 1 percent, while Beach energy is gaining almost 1 percent.

In the tech space, WiseTech Global is losing more than 1 percent, Xero is declining 2.5 percent, Zip is slipping almost 2 percent, Appen is sliding more than 3 percent and Afterpay owner Block is down almost 1 percent.

Among the big four banks, ANZ Banking is edging down 0.3 percent, National Australia Bank is declining more than 3 percent and Westpac is edging down 0.5 percent. Commonwealth Bank is flat.

Among gold miners, Gold Road Resources is losing 1.5 percent, Newcrest Mining is declining almost 2 percent and Resolute Mining is plunging more than 6 percent, while Evolution Mining and Northern Star Resources are down more than 2 percent each.

In the currency market, the Aussie dollar is trading at $0.695 on Wednesday.

The Japanese stock market is modestly higher on Wednesday after being in the red in most of the morning session, recouping the losses in the previous two sessions, with the Nikkei 225 staying above the 27,200 level, following the mixed cues overnight from Wall Street, as some traders looked to pick up stocks at reduced levels after the recent sell-off, even as concerns of rising interest rates, persistent inflation and fears of a global economic slowdown remain.

The benchmark Nikkei 225 Index closed the morning session at 26,249.83, up 82.73 points or 0.32 percent, after hitting a low of 26,003.26 earlier. Japanese stocks closed modestly lower on Tuesday.

Market heavyweight SoftBank Group is losing almost 2 percent, while Uniqlo operator Fast Retailing is adding almost 1 percent. Among automakers, Honda is losing more than 1 percent and Toyota is edging down 0.5 percent.

In the tech space, Screen Holdings and Advantest are edging up 0.5 percent each, while Tokyo Electron is gaining more than 1 percent.

In the banking sector, Mizuho Financial is losing more than 2 percent, Sumitomo Mitsui Financial is declining almost 2 percent and Mitsubishi UFJ Financial is down more than 2 percent.

Among the major exporters, Mitsubishi Electric and Panasonic are losing more than 1 percent each, while Sony is gaining more than 1 percent and Canon is adding almost 2 percent.

Among the other major losers, DeNA and Sumitomo Metal Mining are plunging almost 7 percent each, while Shizuoka Bank and NSK are slipping almost 6 percent each. Toho Zinc and T&D Holdings are losing more than 5 percent each, while Taiyo Yuden, Resona Holdings, Fujikura, Idemitsu Kosan and Dai-ichi Life are down more than 4 percent each. Tokuyama and Sumitomo are sliding almost 4 percent each, while Chiba Bank and Nippon Paper Industries are declining more than 3 percent each.

Conversely, Yokogawa Electric is soaring more than 15 percent, IHI is surging more than 10 percent, Nippon Steel is advancing almost 7 percent and Ricoh is gaining more than 6 percent, while Kyowa Kirin and Mitsubishi Motors are up more than 4 percent each. Nippon Yusen K.K. and Daikin Industries are adding almost 4 percent each.

In the currency market, the U.S. dollar is trading in the lower 130 yen-range on Wednesday.

Elsewhere in Asia, China, Hong Kong and Indonesia are higher by between 1.0 and 1.4 percent each, while New Zealand and Malaysia are up 0.4 and 0.1 percent, respectively. Singapore South Korea and Taiwan are lower by between 0.2 and 0.6 percent each.

On Wall Street, stocks went on a rollercoaster ride over the course of the trading day on Tuesday after moving sharply lower over the three previous sessions. The major averages swung wildly back and forth across the unchanged line before ending the session mixed.

The tech-heavy Nasdaq jumped 114.42 points or 1 percent to 11,737.67 and the S&P 500 rose 9.81 points or 0.3 percent to 4,001.05, while the narrower Dow fell 84.96 points or 0.3 percent to 32,160.74, ending the session at its lowest closing level in over a year.

Meanwhile, the major European markets moved back to the upside following recent weakness. While the German DAX Index jumped by 1.2 percent, the French CAC 40 Index and the U.K.’s FTSE 100 Index rose by 0.5 percent and 0.4 percent, respectively.

Crude oil prices fell sharply on Tuesday, extending losses from the previous session amid concerns over a likely drop in energy demand. A stronger dollar weighed as well on oil prices. West Texas Intermediate Crude oil futures for June ended lower by $3.33 or 3.2 percent at $99.76 a barrel, a two-week low.

Business News