Asian Markets Track Global Markets Higher

Asian stock markets are trading mostly higher on Monday, following the broadly positive cues from global markets on Friday, as traders react positively to the resolution of the U.S. debt ceiling crisis after it was signed into law by US President Joe Biden. They also reacted to solid U.S. employment data and easing fears of recession. Asian markets closed mostly higher on Friday.

The Australian stock market is sharply higher on Monday, extending the gains in the previous two sessions, with the benchmark S&P/ASX 200 moving above the 7,200 level, following the broadly positive cues from global markets on Friday, with gains across all sectors, led by iron ore miners and energy stocks.

The benchmark S&P/ASX 200 Index is gaining 75.40 points or 1.06 percent to 7,220.50, after touching a high of 7,232.30 earlier. The broader All Ordinaries Index is up 74.70 points or 1.02 percent to 7,405.90. Australian stocks closed notably higher on Friday.

Among the major miners, BHP Group is gaining more than 2 percent, Mineral Resources is adding more than 3 percent, Fortescue Metals is advancing almost 3 percent and Rio Tinto is up almost 2 percent.

Oil stocks are mostly higher. Santos is advancing almost 3 percent, Woodside Energy is gaining almost 2 percent and Beach energy is up more than 1 percent, while Origin Energy is edging down 0.1 percent.

Among tech stocks, Zip is gaining almost 2 percent, Appen is edging up 0.3 percent, Afterpay owner Block is adding 2.5 percent and WiseTech Global is up almost 1 percent, while Xero losing almost 1 percent.

Gold miners are mostly lower. Gold Road Resources is losing more than 2 percent, Resolute Mining is sliding almost 5 percent, Newcrest Mining is declining almost 3 percent and Northern Star Resources is down more than 1 percent, while Evolution Mining is gaining almost 3 percent.

Among the big four banks, , Westpac and National Australia Bank are gaining more than 1 percent each, while ANZ Banking is up 1.5 percent and Commonwealth Bank is adding almost 1 percent.

In economic news, the services sector in Australia continued to expand in May, albeit at a slower pace, the latest survey from Judo Bank revealed on Monday with a services PMI score of 52.1. That’s down from 53.7 in April, although it remains above the boom-or-bust line of 50 that separates expansion from contraction. The survey also showed that the composite index slipped to 51.6 in May from 53.0 in April.

Company gross operating profits in Australia were up 0.5 percent on quarter I the first quarter of 2023, the Australian Bureau of Statistics said on Monday. That was shy of expectations for an increase of 1.5 percent following the upwardly revised 12.7 percent jump in the previous three months (originally 10.6 percent). Company profits pre-tax tumbled 7.5 percent on quarter after surging 22.2 percent in the previous quarter.

Business inventories were up 1.2 percent on quarter, exceeding expectations for a gain of 0.5 percent following the upwardly revised 0.3 percent gain in the three months prior (originally -0.2 percent).

In the currency market, the Aussie dollar is trading at $0.660 on Monday.

The Japanese stock market is sharply higher on Monday, extending the gains in the previous two sessions, with the Nikkei 225 moving above the 32,000 mark to fresh 33-year highs, following the broadly positive cues from global markets on Friday, with gains across all sectors, led by market heavy weights.

The benchmark Nikkei 225 Index closed the morning session at 32,045.83, up 521.61 or 1.65 percent, after touching a high of 30,993.38 earlier. Japanese shares ended sharply higher on Friday.

Market heavyweight SoftBank Group is gaining more than 2 percent and Uniqlo operator Fast Retailing is adding almost 2 percent. Among automakers, Honda is gaining almost 3 percent, while Toyota is adding more than 1 percent.

In the tech space, Screen Holdings and Advantest are gaining almost 1 percent each, while Tokyo Electron is edging down 0.2 percent.

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

The major exporters are higher. Canon is gaining almost 1 percent, Mitsubishi Electric is adding more than 2 percent and Sony is advancing almost 2 percent. Panasonic is up more than 4 percent.

Among the other major gainers, Hitachi Construction Machinery is surging more than 6 percent, while JGC Holdings and Komatsu are advancing almost 6 percent. Resonac Holdings and Kawasaki Heavy Industries are gaining more than 5 percent each, while IHI is up almost 5 percent. Sharp is adding more than 4 percent. Tokai Carbon, Toto, JFE Holdings, Kobe Steel, Mitsubishi Heavy Industries and Toray Industries are rising almost 4 percent, while Mazda Motor is adding more than 3 percent.

Conversely, there are no major losers.

In economic news, the services sector in Japan continued to expand in May, and at a faster pace, the latest survey from Jibun Bank showed on Monday with a services PMI of 55.9. That’s up from 55.4 in April, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction. The survey also showed that the composite index grew from 52.9 in April to 54.3 in May.

In the currency market, the U.S. dollar is trading in the lower 140 yen-range on Monday.

Elsewhere in Asia, China, Singapore, Hong Kong, South Korea, Indonesia and Taiwan are higher by between 0.1 and 0.8 percent each. New Zealand is closed for Queen’s Birthday holiday and Malaysia is closed for Agong’s Birthday holiday.

On Wall Street, stocks moved sharply higher over the course of the trading day on Friday, adding to the strong gains posted in Thursday’s session. With the continued upward move, the Nasdaq reached its best closing level in well over a year, while the S&P 500 set a new nine-month closing high.

The major averages pulled back off their best levels going into the close but still posted strong gains. The Dow spiked 701.19 points or 2.1 percent to 33,762.76, the Nasdaq jumped 139.78 points or 1.1 percent to 13,240.77 and the S&P 500 surged 61.35 points or 1.5 percent to 4,282.37.

The major European markets have also moved to the upside on the day. While the French CAC 40 Index spiked by 1.9 percent, the U.K.’s FTSE 100 Index surged by 1.6 percent and the German DAX Index jumped by 1.3 percent.

Crude oil prices rallied on Friday, extending gains from the previous session following the passage of the debt ceiling bill and amid speculation OPEC may announce a cut in production. West Texas Intermediate Crude oil futures for July ended higher by $1.64 or 2.3 percent at $71.74 a barrel.

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