Asian Markets Mixed Amid Cautious Trades

Asian stock markets are trading mixed on Wednesday, following the mixed cues from Wall Street overnight, as traders remain cautious ahead to the key US inflation report and the latest US Fed interest rate decision later in the day. While the Fed is widely expected to leave interest rates unchanged, traders are likely to pay close attention to the accompanying statement for cues on the outlook for interest rates. Asian markets closed mostly lower on Tuesday.

Australian shares are trading notably lower on Wednesday, adding to the losses in the previous session, with the benchmark S&P/ASX 200 falling to near the 7,700 level, following the mixed cues from Wall Street overnight, with weakness in mining and financial stocks. Technology and energy stocks were mixed.

The benchmark S&P/ASX 200 Index is losing 41.60 points or 0.54 percent to 7,713.80, after hitting a low of 7,699.20 earlier. The broader All Ordinaries Index is down 44.00 points or 0.55 percent to 7,961.90. Australian stocks ended sharply lower on Tuesday.

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

Oil stocks are mixed. Santos is gaining almost 1 percent and Woodside Energy is adding more than 1 percent, while Beach energy and Origin Energy are edging down 0.5 percent each.

In the tech space, Afterpay owner Block is edging down 0.3 percent, Xero is down almost 1 percent and WiseTech Global is losing almost 2 percent, while Zip is adding more than 2 percent and Appen is gaining more than 1 percent.

Among the big four banks, Commonwealth Bank, ANZ Banking and National Australia Bank are losing almost 1 percent each, while Westpac is edging down 0.4 percent.

Among gold miners, Newmont, Northern Star Resources, Gold Road Resources and Evolution Mining are edging down 0.1 to 0.3 percent each, while Resolute Mining is declining 1.5 percent.

In the currency market, the Aussie dollar is trading at $0.661 on Wednesday.

The Japanese stock market is significantly lower on Wednesday, giving up some of the gains in the previous two sessions, following the mixed cues from Wall Street overnight. The Nikkei 225 is falling to near the 38,800 level, with losses exporters, auto makers and financial stocks. Traders remain cautious ahead of the cautious ahead of the Bank of Japan’s policy decision later in the week.

The benchmark Nikkei 225 Index closed the morning session at 38,826.33, down 308.46 points or 0.79 percent, after hitting a low of 38,809.36 earlier. Japanese stocks ended modestly higher on Tuesday.

Market heavyweight SoftBank Group is edging up 0.2 percent, while Uniqlo operator Fast Retailing is losing 2.5 percent. Among automakers, Honda is edging down 0.2 percent and Toyota is down 1.5 percent.

In the tech space, Advantest is edging up 0.4 percent, while Tokyo and Screen Holdings are edging down 0.1 to 0.3 percent each.

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

Among the major exporters, Canon and Panasonic are losing almost 1 percent each, while Sony is declining almost 3 percent. Mitsubishi Electric is edging up 0.1 percent.

Among other major losers, Toho is losing almost 6 percent, while Japan Steel Works and Daiichi Sankyo are down more than 3 percent each. Recruit Holdings, Mitsubishi Estate, West Japan Railway, East Japan Railway and Keyence are declining almost 3 percent each.

Conversely, TDK is gaining more than 4 percent and Taiyo Yuden is adding almost 3 percent.

In economic news, producer prices in Japan were up 0.7 percent on month in May, the Bank of Japan said on Wednesday. That exceeded expectations for an increase of 0.4 percent and was up from the upwardly revised 0.5 percent gain in April (originally 0.3 percent).

On a yearly basis, producer prices climbed 2.4 percent – again topping forecasts for 2.0 percent and accelerating from the upwardly revised 1.1 percent gain in the previous month (originally 0.9 percent).

The export price index rose 0.1 percent on month, the bank said, while the import price index rose 0.9 percent.

In the currency market, the U.S. dollar is trading in the lower 157 yen-range on Wednesday.

Elsewhere in Asia, Hong Kong is down 1.7 percent, while Singapore and Indonesia are down 0.2 and 0.1 percent, respectively. New Zealand, South Korea, Malaysia and Taiwan are higher by between 0.1 and 0.5 percent each. China is relatively flat.

On the Wall Street, stock indexes all moved to the downside in early trading on Tuesday but turned mixed over the course of the session. While the Nasdaq and the S&P 500 recovered from the early weakness to reach new record closing highs, the narrower Dow climbed off its worst levels but spent the rest of the day in negative territory.

The Nasdaq jumped 151.07 points or 0.9 percent to 17,343.55 and the S&P 500 rose 14.53 points or 0.3 percent to 5,375.32, but the Dow fell 120.62 points or 0.3 percent to 38,747.42.

Meanwhile, the major European markets all moved to the downside on the day. While the French CAC 40 Index tumbled 1.3 percent, the U.K.’s FTSE 100 Index slumped by 1.0 percent and the German DAX Index fell by 0.7 percent.

Crude oil prices settled slightly higher Tuesday as caution reigned ahead of inventory data and the Federal Reserve’s monetary policy announcement. West Texas Intermediate crude oil futures for July ended up by $0.16 at $77.90 a barrel.