Asian Markets Mostly Higher

Asian stock markets are mostly higher on Tuesday, following the mixed cues from global markets overnight, amid optimism about the outlook for interest rates as traders looked ahead to a slew of crucial economic data, including reports on consumer and producer price inflation, for more clarity about the US central bank’s interest rate moves. Asian markets closed mixed on Monday.

The inflation data could have a significant impact on the outlook for interest rates, with US Fed officials saying they need “greater confidence” that inflation is slowing before they consider cutting rates. However, the Fed is widely expected to leave rates unchanged at its monetary policy meeting next week.

Recouping some of the losses in the previous session, the Australian stock market is slightly higher on Tuesday, following the mixed cues from global markets overnight. The benchmark S&P/ASX 200 is staying a tad above the 7,700 level, with gains in gold miners, technology and financial stocks nearly offset by losses in major iron ore miners and energy stocks.

The benchmark S&P/ASX 200 Index is gaining 4.60 points or 0.06 percent to 7,708.80, after touching a high of 7,736.70 earlier. The broader All Ordinaries Index is up 4.20 points or 0.05 percent to 7,967.80. Australian stocks closed sharply lower on Monday.

Among the major miners, Fortescue Metals is losing almost 1 percent and BHP Group is declining more than 1 percent, while Mineral Resources is adding 1.5 percent and Rio Tinto is edging up 0.2 percent.

Oil stocks are lower. Origin Energy is edging down 0.5 percent, while Beach energy, Santos and Woodside Energy are losing almost 1 percent each.

Among tech stocks, WiseTech Global is edging up 0.4 percent, Zip is surging more than 6 percent, Afterpay owner Block is gaining almost 3 percent and Appen is skyrocketing more than 19 percent. Xero is flat.

Gold miners are higher. Evolution Mining is gaining more than 2 percent, Newmont is advancing almost 4 percent, Northern Star resources is adding almost 3 percent, Resolute Mining is up almost 2 percent and Gold Road Resources is rising more than 1 percent.

Among the big four banks, Commonwealth Bank and ANZ Banking are gaining almost 1 percent each, while Westpac is adding more than 1 percent and National Australia Bank is edging up 0.3 percent.

In other news, shares in Alumina are jumping almost 10 percent after US aluminum producer Alcoa’s $3.3 billion all-stock bid was formalized.

In the currency market, the Aussie dollar is trading at $0.662 on Tuesday.

Extending the strong losses in the previous session, the Japanese stock market is notably lower on Tuesday, with the Nikkei 225 retracting from recent all-time highs to fall below the 38,600 level, following the mixed cues from global markets overnight, with losses in index heavyweights, exporters and financial stocks.

The benchmark Nikkei 225 Index closed the morning session at 38,586.92, down 233.57 points or 0.60 percent, after hitting a low of 38,271.38 earlier. Japanese shares ended sharply lower on Monday.

Market heavyweight SoftBank Group is losing almost 2 percent and Uniqlo operator Fast Retailing is flat. Among automakers, Honda is losing more than 1 percent and Toyota is declining almost 3 percent.

In the tech space, Advantest is edging down 0.3 percent and Tokyo Electron is losing almost 3 percent, while Screen Holdings is edging up 0.2 percent.

In the banking sector, Sumitomo Mitsui Financial, Mitsubishi UFJ Financial and Mizuho Financial are losing more than 3 percent each.

The major exporters are weak. Panasonic is losing almost 2 percent, Canon is edging down 0.5 percent, Sony is down almost 1 percent and Mitsubishi Electric is declining almost 5 percent.

Among the other major losers, Renesas Electronics and Mitsui & Co. are losing almost 5 percent each, while MS&AD Insurance, Marubeni and Tokyo Gas are declining more than 4 percent each. Rakuten Group, Keisei Electric Railway, Omron, Itochu, T&D Holdings and Sumitomo are down almost 4 percent each, while Osaka Gas and Mitsubishi Corp. are slipping more than 3 percent each.

Conversely, there are no other major gainers.

In the currency market, the U.S. dollar is trading in the lower 147 yen-range on Tuesday.

Elsewhere in Asia, Hong Kong, Singapore, South Korea Malaysia and Taiwan are higher by between 0.2 and 0.9 percent each. New Zealand and China are down 0.5 and 0.6 percent, respectively. Indonesia remains closed in observance of the Hindi Saka New Year.

On Wall Street, stocks saw further downside in early trading on Monday after coming under pressure over the course of the previous session. The major averages regained ground over the course of the trading day, however, with the Dow closing modestly higher.

While the Dow inched up 46.97 points or 0.1 percent to 38,769.66 after falling nearly 240 points in early trading, the S&P 500 edged down 5.75 points or 0.1 percent to 5,117.94 and the Nasdaq fell 65.84 points or 0.4 percent to 16,019.27.

The major European markets also finished the day mixed. While the U.K.’s FTSE 100 Index inched up by 0.1 percent, the French CAC 40 Index edged down by 0.1 percent and the German DAX Index fell by 0.4 percent.

Crude oil prices settled lower on Monday amid concerns about the outlook for demand from China and on caution ahead key U.S. consumer price inflation data. West Texas Intermediate Crude oil futures for April ended down $0.08 or 0.1 percent at $77.93 a barrel, settling lower for the third consecutive session.

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