Asian Markets Track Wall Street Higher

Asian stock markets are trading mostly higher on Monday, following the broadly positive cues from Wall Street on Friday, as traders react to stronger than expected US jobs growth data that eased concerns about the economic outlook, but dashed hopes of aggressive rate cuts in the coming months. However, escalating tensions in the Middle East is weighing on market sentiment. Asian markets closed mixed on Friday.

Following the jobs data, CME Group’s FedWatch Tool is indicating a 91.2% the Fed will lower rates by a quarter point in November and just a 8.8 percent chance of another half point rate cut.

The Australian stock market is currently trading modestly higher on Monday, reversing the losses in the previous session, following the broadly positive cues from Wall Street on Friday. The benchmark S&P/ASX 200 index is moving to near the 8,200.00 level, with gains in financial and technology stocks partially offset by weakness in gold miner stocks.

The benchmark S&P/ASX 200 Index is gaining 36.80 points or 0.45 percent to 8,186.80, after touching of 8,199.60 earlier. The broader All Ordinaries Index is up 43.30 points or 0.51 percent to 8,459.90. Australian stocks closed significantly lower on Friday.

Among the major miners, BHP Group is edging up 0.4 percent, Fortescue Metals is gaining more than 1 percent and Mineral Resources is advancing almost 4 percent, while Rio Tinto is edging down 0.5 percent.

Oil stocks are mixed. Origin Energy is losing more than 1 percent and Woodside Energy is edging down 0.1 percent each, while Beach energy is edging up 0.2 percent. Santos is flat.

Among tech stocks, Afterpay owner Block and Appen are gaining almost 3 percent each, while Xero is edging up 0.4 percent, WiseTech Global is adding almost 1 percent and Zip is advancing almost 5 percent.

Gold miners are mostly lower. Evolution Mining is losing almost 3 percent, Resolute Mining is declining almost 5 percent and Northern Star Resources is down almost 1 percent, while Newmont and Gold Road Resources are edging up 0.4 percent each.

Among the big four banks, Commonwealth Bank and National Australia Bank are gaining almost 1 percent each, while ANZ Banking is edging up 0.5 percent and Westpac is adding more than 1 percent.

In other news, shares in Arcadium Lithium are skyrocketing 44 percent after Rio Tinto confirmed it was considering buying Arcadium.

In the currency market, the Aussie dollar is trading at $0.681 on Monday.

The Japanese stock market is trading sharply higher on Monday, adding to the gains in the previous two sessions. The benchmark S&P/ASX 200 is moving above the 39,600 level, following the broadly positive cues from Wall Street on Friday, with losses across all sectors led by index heavyweights, financial and technology stocks.

The benchmark Nikkei 225 Index closed the morning session at 39,354.63, up 719.01 or 1.86 percent, after touching a high of 39,514.57 earlier. Japanese shares ended modestly higher on Friday.

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

In the tech space, Screen Holdings is gaining almost 4 percent, Advantest is adding 3.5 percent and Tokyo Electron is up almost 1 percent.

In the banking sector, Sumitomo Mitsui Financial is gaining almost 4 percent, Mitsubishi UFJ Financial is adding more than 4 percent and Mizuho Financial is advancing almost 5 percent.

The major exporters are mostly lower. Canon and Mitsubishi Electric are gaining almost 2 percent each, while Panasonic is up more than 1 percent and Sony is adding more than 4 percent.

Among other major gainers, Isetan Mitsukoshi is soaring more than 8 percent, Resona Holdings is surging almost 8 percent, Konami Group is gaining more than 6 percent and Recruit Holdings is adding more than 5 percent, while Nomura Holdings, J. Front Retailin, Chiba Bank, Nitto Denko, Hitachi, Sumitomo Electric Industries and MS&AD Insurance Group are rising more than 4 percent each.

Conversely, Disco is plunging more than 7 percent.

In the currency market, the U.S. dollar is trading in the lower 148 yen-range on Monday.

Elsewhere in Asia, Taiwan is up 1.1 percent, while Hong Kong, Singapore, South Korea and Malaysia are higher by between 0.3 and 0.8 percent each. New Zealand and Indonesia are down 0.5 and 0.3 percent, respectively. China remains closed for the National Day holiday.

On Wall Street, stocks rallied on Friday, lifting the major averages to a firm close, as upbeat non-farm payroll data helped offset concerns about Middle East tensions and prompted investors to indulge in some brisk buying at several counters from across various sectors.

The Dow settled at a fresh record high at 42,352.75, gaining 341.16 points or 0.81 percent, the S&P 500 closed up 51.13 points or 0.9 percent at 5,751.07, and the Nasdaq climbed 219.37 points or 1.22 percent to settle at 18,137.85.

Meanwhile, the major European markets were mixed on the day. Germany’s DAX and France’s CAC 40 gained 0.55 percent and 0.85 percent, respectively, while the U.K.’s FTSE 100 edged down slightly.

Crude oil prices settled higher on Friday on concerns about a possible attack on Iran’s oil facilities by Israel, while upbeat U.S. jobs data also supported oil prices. West Texas Intermediate Crude oil futures for November added $0.67 or 0.91 percent at $74.38 a barrel, a five-week high. WTI crude futures gained more than 9 percent in the week.

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