Asian Markets Track Wall Street Higher

Asian stock markets are trading mostly higher on Friday, following the broadly positive cues from Wall Street overnight, amid strong gains in New Zealand, Taiwan, South Korea, Australia and Japan as traders tracked the upbeat earnings and revenue performance of AI darling Nvidia. Escalating geopolitical tensions due to the ongoing war between Russia and Ukraine continued to weigh on market sentiment. Asian markets ended mostly lower on Thursday.

The Australian stock market is significantly higher on Friday, recouping the losses in the previous two sessions, following the broadly positive cues from Wall Street overnight. The benchmark S&P/ASX 200 is moving above the 8,400 level, with gains across most sectors led by mining, financial and energy stocks.

The benchmark S&P/ASX 200 Index is gaining 88.30 points or 1.06 percent to 8,411.30, after touching a high of 8,411.80 earlier. The broader All Ordinaries Index is up 86.70 points or 1.01 percent to 8,653.70. Australian markets ended slightly lower on Thursday.

Among major miners, BHP Group, Fortescue Metals and Rio Tinto are gaining almost 1 percent each, while Mineral Resources is advancing more than 4 percent.

Oil stocks are mostly higher. Woodside Energy is gaining more than 2 percent and Origin Energy is up more than 1 percent, while Beach energy and Santos are adding almost 2 percent each.

Among tech stocks, Afterpay-owner Block is advancing almost 3 percent, Zip is adding almost 1 percent and Xero is edging up 0.2 percent, while Appen is losing more than 2 percent and WiseTech Global is tumbling more than 9 percent after the logistics software maker trimmed its annual earnings and revenue forecast.

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

Gold miners are mostly higher. Evolution Mining and Resolute Mining are edging up 0.5 percent each, while Newmont and Northern Star Resources are adding more than 1 percent each. Gold Road Resources is gaining almost 1 percent.

In other news, shares in Megaport are slipping almost 11 percent even though the software company reaffirmed its annual earnings guidance.

Shares in a2 Milk Co. are jumping almost 14 percent after it raised its revenue annual guidance and announced it would start paying dividends.

In economic news, the manufacturing sector in Australia continued to contract in November, albeit at a slower pace, the latest survey from Judo Bank revealed on Friday with a manufacturing PMI score of 49.4. That’s up from 47.3 in October, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction. The survey also showed that the services PMI fell to 49.6 from 51.0 in the previous month. The composite PMI fell to 49.4 in November from 50.2 on October.

In the currency market, the Aussie dollar is trading at $0.652 on Friday.

Reversing the losses in the previous two sessions, the Japanese stock market is significantly higher on Friday, following the broadly positive cues from Wall Street overnight. The benchmark Nikkei 225 is moving above the 38,400 level, with gains across most sectors led by in index heavyweights and technology stocks.

The benchmark Nikkei 225 Index closed the morning session at 38,415.32, up 389.15 points or 1.02 percent, after touching a high of 38,420.63 earlier. Japanese stocks closed significantly lower on Thursday.

Market heavyweight SoftBank Group is gaining almost 1 percent and Uniqlo operator Fast Retailing is adding more than 1 percent. Among automakers, Honda is gaining almost 2 percent and Toyota is adding almost 1 percent.

In the tech space, Advantest is gaining more than 1 percent, Screen Holdings is adding almost 1 percent and Tokyo Electron is advancing almost 2 percent.

In the banking sector, Mitsubishi UFJ Financial is gaining more than 1 percent and Sumitomo Mitsui Financial is adding almost 2 percent, while Mizuho Financial is edging down 0.4 percent.

Among major exporters, Mitsubishi Electric and Sony are edging up 0.1 to 0.4 percent each, while Canon is gaining more than 1 percent and Panasonic is adding almost 1 percent.

Among other major gainers, Mitsui Chemicals and Yokogawa Electric are surging more than 5 percent each, while Credit Saison, Taiheiyo Cement, Obayashi and NTT Data are advancing more than 3 percent each. ENEOS Holdings and Recruit Holdings are gaining almost 3 percent each.

Conversely, DeNA is losing almost 5 percent.

In economic news, overall consumer prices in Japan were up 2.3 percent on year in October, the Ministry of Internal Affairs and Communications said on Friday. That was in line with expectations and down from 2.5 percent in September.

On a seasonally adjusted monthly basis, overall inflation was up 0.4 percent – exceeding forecasts for 0.2 percent following the 0.3 percent decline in the previous month. Core CPI, which excludes the volatile prices of foods, rose 2.3 percent on year – above forecasts for 2.2 percent but down from 2.3 percent a month earlier.

The latest survey from Jibun Bank revealed that the manufacturing sector in Japan continued to contract in November, and at a faster pace, with a manufacturing PMI score of 49.0. That’s down from 49.2 in October, although it moves further beneath the boom-or-bust line of 50 that separates expansion from contraction. The survey also showed that the services PMI improved to 50.2 from 49.7 in the previous month. The composite PMI rose to 49.8 in November from 49.6 on October.

In the currency market, the U.S. dollar is trading in the lower 154 yen-range on Friday.

Elsewhere in Asia, New Zealand is surging 2.1 percent, Taiwan is up 1.4 percent and South Korea is adding 1.0 percent, while Singapore, Malaysia and Indonesia are higher by between 0.2 and 0.8 percent each. China and Hong Kong are down 0.6 and 0.3 percent, respectively.

On Wall Street, stocks saw considerable volatility early in the session on Thursday but moved mostly higher over the course of the trading day. The major averages all finished the day in positive territory, with the Dow posting a standout gain.

The Dow jumped 461.88 points or 1.1 percent to 43,870.35 and the S&P 500 climbed 31.60 points or 0.5 percent to 5,948.71, while the tech-heavy Nasdaq posted a much more modest gain, inching up 6.28 points or less than a tenth of a percent to 18,972.42.

The major European markets also moved to the upside on the day. While the French CAC 40 Index edged up by 0.2 percent, the German DAX Index and the U.K.’s FTSE 100 Index advanced by 0.7 percent and 0.8 percent, respectively.

Crude oil prices drifted lower on Wednesday on weak demand concerns and data showing an increase in U.S. crude inventories last week. West Texas Intermediate crude oil futures for December slipped $0.52 or 0.75 percent at $68.87 a barrel.