Asian Markets Mostly Higher

Asian stock markets are trading mostly higher on Wednesday, following the broadly positive cues from global markets overnight, as traders react positively to comments from several US Fed officials suggesting the U.S. central bank is nearing the end of its rate-hiking cycle. Asian markets closed mostly higher on Tuesday.

Traders also cautiously await US consumer price inflation data later in the day that is likely to have a significant impact on the outlook for interest rates.

Ahead of the inflation data, CME Group’s FedWatch Tool is indicating a 92.4 percent chance of another quarter point rate hike at the next Fed meeting later this month.

The Australian stock market is notably higher on Wednesday, extending the gains in the previous session, with the benchmark S&P/ASX 200 staying above the 7,100 level, following the broadly positive cues from global markets overnight, with gains in mining and energy stocks amid a spike in commodity prices.

The benchmark S&P/ASX 200 Index is gaining 27.60 points or 0.39 percent to 7,136.50, after touching a high of 7,158.50 earlier. The broader All Ordinaries Index is up 28.20 points or 0.39 percent to 7,344.00. Australian stocks ended sharply higher on Tuesday.

Among major miners, Rio Tinto, BHP Group, Fortescue Metals and Mineral Resources are gaining more than 1 percent each.

Oil stocks are mostly higher. Woodside Energy is gaining 2.5 percent, Santos is adding almost 2 percent and Beach energy is up more than 2 percent, while Origin Energy is edging down 0.4 percent.

In the tech space, Afterpay owner Block is gaining almost 3 percent, Appen is advancing more than 2 percent and Zip is adding almost 2 percent, while Xero is edging down 0.2 percent. WiseTech Global is flat.

Among the big four banks, Commonwealth Bank, Westpac, ANZ Banking and National Australia Bank are edging up 0.3 to 0.5 percent each.

Among gold miners, Newcrest Mining is gaining almost 1 percent and Resolute Mining is adding more than 1 percent, while Gold Road Resources and Northern Star Resources are edging down 0.3 to 0.5 percent each. Evolution Mining is flat.

In the currency market, the Aussie dollar is trading at $0.673 on Wednesday.

The Japanese stock market is significantly lower on Wednesday, giving up the slight gains in the previous session, with the Nikkei 225 falling below the 32,000 mark, despite the broadly positive cues from global markets overnight, with losses in exporters and technology stocks.

The benchmark Nikkei 225 Index closed the morning session at 31,957.86, down 245.71 points or 0.76 percent, after hitting a low of 31,791.71 earlier. Japanese stocks ended slightly higher on Tuesday.

Market heavyweight SoftBank Group is edging down 0.2 percent, while Uniqlo operator Fast Retailing is edging up 0.2 percent. Among automakers, Honda is edging down 0.2 percent and Toyota is edging down 0.5 percent.

In the tech space, Screen Holdings is losing almost 4 percent, Advantest is down more than 2 percent each and Tokyo Electron is declining almost 3 percent.

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

Among the major exporters, Canon is edging down 0.5 percent, Sony is declining more than 2 percent and Panasonic is losing almost 1 percent. Mitsubishi Electric is flat.

Among the other major losers, Renesas Electronics is losing almost 4 percent, while Yaskawa Electric, Sumco, Eisai and Aeon are declining more than 3 percent. Trend Micro, Dai-ichi Life Holdings and Taiyo Yuden are down almost 3 percent each.

Conversely, there are no other major gainers.

In the currency market, the U.S. dollar is trading in the higher 139 yen-range on Wednesday.

Elsewhere in Asia, Hong Kong is up 1.3 percent, while Singapore, South Korea, Malaysia, Indonesia and Taiwan are higher by between 0.1 and 0.4 percent each. China is bucking the trend and is down 0.1 percent. New Zealand is relatively flat.

On the Wall Street, stocks moved mostly higher over the course of the trading day on Tuesday, adding to the modest gains posted in the previous session. The major averages all moved to the upside, further offsetting the pullback seen last week.

The major averages reached new highs for the session going into the close. The Dow jumped 317.02 points or 0.9 percent to 34,261.42, the Nasdaq rose 75.22 points or 0.6 percent to 13,760.70 and the S&P 500 climbed 29.73 points or 0.7 percent to 4,439.26.

The major European markets also moved to the upside on the day. While the French CAC 40 Index jumped by 1.1 percent, the German DAX Index advanced by 0.8 percent and the U.K.’s FTSE 100 Index inched up by 0.1 percent.

Crude oil futures settled higher on Tuesday, lifted by the Energy Information Administration’s forecast of a drop in oil production and the International Energy Agency’s forecast about increased demand from China. West Texas Intermediate Crude oil futures for August ended higher by $1.84 or about 2.52% at $74.83 a barrel.

Business News