Asian Markets Track Global Markets Lower

Asian stock markets are trading mostly lower on Wednesday, following the broadly negative cues from global markets overnight, as some traders continued to cash in on recent strength in the markets by booking profits. They are also cautious ahead of the US Fed Chair Jerome Powell’s congressional testimony later in the day, which could provide clues about the outlook for interest rate moves. Asian markets closed mixed on Tuesday.

The Australian stock market is modestly lower on Wednesday, snapping the seven-session winning streak, with the benchmark S&P/ASX 200 staying above the 7,300 level, following the broadly negative cues from global markets overnight, with losses in materials and energy stocks amid tumbling commodity prices, partially offset by strength in technology stocks.

The benchmark S&P/ASX 200 Index is losing 22.40 points or 0.30 percent to 7,335.40, after hitting a low of 7,332.90 earlier. The broader All Ordinaries Index is down 24.20 points or 0.32 percent to 7,524.30. Australian stocks ended significantly higher on Tuesday.

Among major miners, Fortescue Metals is losing more than 3 percent and BHP Group is declining almost 2 percent, while Mineral Resources and Rio Tinto are down almost 1 percent each.

Oil stocks are mostly lower. Santos and Beach energy are down almost 1 percent each, while Woodside Energy is losing more than 1 percent and Origin Energy is edging down 0.1 percent.

In the tech space, Afterpay owner Block is gaining more than 2 percent, Xero is up almost 1 percent and Appen is advancing 1.5 percent, while WiseTech Global and Zip are adding more than 1 percent each.

Among the big four banks, ANZ Banking and Westpac are edging down 0.2 to 0.3 percent each, while National Australia Bank and Commonwealth Bank are gaining almost 1 percent.

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

In other news, shares in TPG Telecom shares are slipping almost 9 percent on news the Australian Competition Tribunal has blocked its regional network sharing arrangement with Telstra.

Shares in Rex Airlines are also plunging more than 15 percent after it revealed that it no longer expects to make a profit for the full-year 2023 and will swing to an operational loss of $35 million.

In the currency market, the Aussie dollar is trading at $0.679 on Wednesday.

The Japanese stock market is modestly higher on Wednesday after opening well in the red, extending the gains in the previous session, with the Nikkei 225 moving above the 33,500 level, despite the broadly negative cues from global markets overnight, with gains in technology and financial stocks.

The benchmark Nikkei 225 Index closed the morning session at 33,523.53, up 134.62 points or 0.40 percent, after touching a high of 33,533.09 and a low of 33,154.68 earlier. Japanese stocks ended slightly higher on Tuesday.

Market heavyweight SoftBank Group is gaining almost 4 percent and Uniqlo operator Fast Retailing is flat. Among automakers, Honda is gaining more than 1 percent, while Toyota is losing more than 1 percent.

In the tech space, Screen Holdings is edging up 0.3 percent, Advantest is gaining more than 1 percent and Tokyo Electron is edging up 0.5 percent.

In the banking sector, Sumitomo Mitsui Financial and Mitsubishi UFJ Financial are edging up 0.2 to 0.3 percent each, while Mizuho Financial is flat.

Among the major exporters, Sony is losing more than 1 percent and Canon is edging down 0.2 percent, while Mitsubishi Electric and Panasonic are gaining almost 1 percent each.

Among other major gainers, CyberAgent is gaining almost 5 percent, while Shiseido, Japan Airlines, Kobe Steel and T&D Holdings are adding more than 3 percent each. Japan Steel Works, Sompo Holdings, Keisei Electric Railway, Nissui and Taiheiyo Cement are up almost 3 percent each.

Conversely, NEXON is losing almost 3 percent.

In economic news, members of the Bank of Japan’s Monetary Policy Board said that the country’s economy remains on an upward trend, minutes from its monetary policy meeting on April 27 and 28 revealed on Wednesday. At the meeting, the bank’s Policy Board unanimously decided to maintain a negative interest rate of -0.1 percent on current accounts that financial institutions maintain at the central bank. The BoJ also unanimously decided to keep its yield curve control policy unchanged.

The country’s economy is expected to fully recover from the pandemic stresses by around mid-fiscal 2023, the members added – although some uncertainties continue to cloud the outlook. The bank also is aiming to achieve its price stability target of 2 percent.

In the currency market, the U.S. dollar is trading in the higher 141 yen-range on Wednesday.

Elsewhere in Asia, Hong Kong is down 1.6 percent, while New Zealand, China, South Korea and Taiwan are lower by between 0.1 and 0.4 percent each. Singapore is up 0.2 percent. Malaysia and Indonesia are relatively flat.

On Wall Street, stocks regained some ground over the course of the trading day on Tuesday after coming under pressure early in the session, but still closed mostly lower. The major averages extended the pullback seen late in last Friday’s session.

The major averages all finished the day in negative territory. The Dow slid 245.25 points or 0.7 percent to 34,053.87, the S&P 500 fell 20.88 points or 0.5 percent to 4,388.71 and the Nasdaq dipped 22.28 points or 0.2 percent to 13,667.29.

The major European markets also moved to the downside on the day. While the German DAX Index slid by 0.6 percent, the French CAC 40 Index and the U.K.’s FTSE 100 Index both fell by 0.3 percent.

Crude oil prices fell on Tuesday amid concerns that further tightening by the Federal Reserve and other central banks may impact global economic growth and weighed on oil prices. West Texas Intermediate Crude oil futures for August ended down $0.74 at $71.19 a barrel.