Asian Markets Track Global Markets Higher

Asian stock markets are mostly higher on Tuesday, following the broadly positive cues from global markets overnight, as traders picked up stocks at reduced levels after last week’s weakness. They also remain cautious and continued to refrain from creating fresh long positions ahead of the release of the closely watched report on US consumer price inflation later in the day. Asian markets closed mostly lower on Monday.

The inflation data could have a significant impact on the outlook for interest rates amid recent speculation the Federal Reserve may raise rates higher than anticipated.

The Australian stock market notably higher on Tuesday, recouping some of the losses in the previous three sessions, with the benchmark S&P/ASX 200 staying above the 7,400 level, despite the broadly positive cues from global markets overnight, boosted by gains in energy and technology stocks.

The benchmark S&P/ASX 200 Index is gaining 12.10 points or 0.16 percent to 7,429.90, after touching a high of 7,476.60 earlier. The broader All Ordinaries Index is up 13.70 points or 0.18 percent to 7,628.20. Australian stocks closed modestly lower on Monday.

Among the major miners, Mineral Resources is losing more than 1 percent, while Rio Tinto and Fortescue Metals are edging down 0.2 percent each. BHP Group is edging up 0.1 percent and OZ Minerals is flat.

Oil stocks are mostly higher. Santos is edging up 0.4 percent, Beach energy is adding more than 3 percent and Woodside Energy is up almost 1 percent. Origin Energy is losing more than 1 percent.

Among tech stocks, Afterpay owner Block is gaining almost 3 percent and Zip is edging up 0.5 percent, while WiseTech Global and Xero are adding more than 2 percent each. Appen is losing almost 5 percent.

Gold miners are mostly higher. Northern Star Resources and Newcrest Mining are edging up 0.4 to 0.5 percent each, while Resolute Mining is gaining more than 2 percent. Gold Road Resources and Evolution Mining are flat.

Among the big four banks, National Australia Bank, Westpac and ANZ Banking are edging up 0.1 to 0.4 percent, while Commonwealth Bank is flat.

In other news, shares in James Hardie are down almost 4 percent after the manufacturing company cut its profit guidance for the full year.

Shares in Ansell dropped almost 9 percent after it lowered its earnings per share guidance amid falling sales.

Shares in Temple & Webster are tumbling almost 22 percent after the online homewares outlet reported a 12 percent drop in sales for the half year. It also did not pay a dividend.

In the currency market, the Aussie dollar is trading at $0.696 on Tuesday.

The Japanese stock market is notably higher on Tuesday, recouping some of the losses in the previous session, with the Nikkei 225 falling below the 27,600 level, following the broadly positive cues from global markets overnight, driven by gains in technology and financial stocks.

The benchmark Nikkei 225 Index closed the morning session at 27,579.61, up 152.29 points or 0.56 percent, after touching a high of 27,721.82 earlier. Japanese shares ended significantly lower on Monday.

Market heavyweight SoftBank Group is edging up 0.3 percent and Uniqlo operator Fast Retailing is gaining almost 1 percent. Among automakers, Honda is flat and Toyota is also edging up 0.5 percent.

In the tech space, Advantest is gaining more than 1 percent, Tokyo Electron is adding more than 2 percent and Screen Holdings is up almost 1 percent.

In the banking sector, Mitsubishi UFJ Financial and Sumitomo Mitsui Financial are gaining more than 1 percent each, while Mizuho Financial is adding almost 1 percent.

The major exporters are mostly higher. Canon is gaining almost 1 percent, while Mitsubishi Electric and Sony are adding almost 1 percent each. Panasonic is edging down 0.5 percent.

Among the other major gainers, Mitsui E&S Holdings is surging almost 6 percent, Tokai Carbon is gaining almost 5 percent and Sumco is adding almost 3 percent.

Conversely, Japan Steel Works is plunging more than 6 percent and Recruit Holdings is declining more than 5 percent.

In economic news, Japan’s gross domestic product expanded a seasonally adjusted 0.2 percent on quarter in the fourth quarter of 2022, the Cabinet Office said on Tuesday. That was shy of expectations for an increase of 0.6 percent following the downwardly revised 0.3 percent contraction in the third quarter (originally -0.2 percent).

On an annualized basis, GDP added 0.6 percent – again missing forecasts for an increase of 2.0 percent following the downwardly revised 1.0 percent decline in the three months prior (originally -0.8 percent).

In the currency market, the U.S. dollar is trading in the 132 yen-range on Tuesday.

Elsewhere in Asia, New Zealand, South Korea, Malaysia, Taiwan and Indonesia are higher by between 0.3 and 0.7 percent each, while Hong Kong and Singapore are down 0.2 and 0.1 percent, respectively. China is relatively flat.

On the Wall Street, stocks showed a strong move to the upside during trading on Monday following the mixed performance seen in the previous sessions. The strength on Wall Street came as some traders looked to pick up stocks at relatively reduced levels following the weakness seen last week.

The Dow jumped 376.66 points or 1.1 percent to 34,245.93, the Nasdaq surged 173.67 points or 1.5 percent to 11,891.79 and the S&P 500 shot up 46.83 points or 1.1 percent to 4,137.29.

The major European markets also moved to the upside on the day. While the French CAC 40 Index jumped by 1.1 percent, the U.K.’s FTSE 100 Index advanced by 0.8 percent and the German DAX Index rose by 0.6 percent.

Crude oil prices slumped on Monday afternoon, unable to held early gains. West Texas Intermediate was down $0.43 or 0.54 percent to $79.29 per barrel, coming off a high of $80.62 earlier in the day.

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