Asian Markets Mixed Amid Cautious Trades

Asian stock markets are trading mixed on Wednesday, following the broadly positive cues from Wall Street overnight, as traders remain cautious amid lingering worries of a global trade war and geopolitical issues as they tracking reports from Ukraine peace talks. A meeting between Russian and U.S. officials raised hopes of an end to the three-year war in Ukraine. Asian markets closed mixed on Tuesday.

US President Donald Trump has earlier in the day threatened to impose tariffs of around 25 percent on automobile, semiconductor and pharmaceutical imports, which could affect most Asian regions.

The Australian stock market is trading notably lower on Wednesday, extending the losses in the previous two sessions, with the benchmark S&P/ASX 200 falling to near the 8,400 level, despite the broadly positive cues from Wall Street overnight, with weakness in financial, energy stocks and technology stocks partially offset by gains in mining stocks.

The benchmark S&P/ASX 200 Index is losing 54.50 points or 0.64 percent to 8,426.50, after hitting a low of 8,389.40 earlier. The broader All Ordinaries Index is down 48.50 points or 0.55 percent to 8,708.20. Australian stocks ended significantly lower on Tuesday.

Among major miners, BHP Group is edging up 0.4 percent, while Rio Tinto and Fortescue Metals are adding more than 1 percent each. Mineral Resources is tumbling almost 15 percent after reporting downbeat half-yearly results.

Oil stocks are mostly lower. Woodside Energy is losing almost 1 percent, Beach Energy is down almost 2 percent and Santos is declining almost 2 percent, while Origin Energy is gaining almost 1 percent.

In the tech space, Appen is losing more than 1 percent, WiseTech Global is down almost 1 percent and Xero is edging down 0.1 percent, while Afterpay owner Block is gaining almost 1 percent and Zip is gaining almost 2 percent.

Among the big four banks, Commonwealth Bank is declining more than 2 percent, Westpac is edging down 0.4 percent, ANZ Banking is losing more than 1 percent and National Australia Bank is slipping almost 7 percent after profitability eroded over the December quarter, due to higher funding costs and continued competition for loans and deposits.

Among gold miners, Newmont and Northern Star Resources are adding more than 1 percent each, while Gold Road Resources and Evolution Mining are advancing almost 2 percent each. Resolute Mining is gaining 3.5 percent.

In other news, shares in Ventia Services are surging more than 6 percent after reporting a 16 percent rise in annual net profit that came in ahead of guidance.

Shares in Corporate Travel are climbing almost 10 percent, despite reporting that first-half profit dropped by a third, due to issues with its European division’s travel booking and accommodation business.

In economic news, Australia’s wage price index was up 0.7 percent on quarter in the fourth quarter of 2024, the Australian Bureau of Statistics said on Wednesday. That missed expectations for an increase of0.8 percent, which would have been unchanged from the previous quarter. On a yearly basis, wages climbed 3.2 percent – matching forecasts and slowing from the 3.5 percent in the three months prior.

In the currency market, the Aussie dollar is trading at $0.635 on Wednesday.

The Japanese stock market is modestly lower on Wednesday, giving up some of the gains in the previous two sessions, despite the broadly positive cues from Wall Street overnight. The Nikkei 225 is falling to near the 39,100 level, with weakness in index heavyweights, exporters and automaker stocks nearly offset by gains in technology and financial stocks.

The benchmark Nikkei 225 Index closed the morning session at 39,108.88, down 161.52 points or 0.41 percent, after hitting a low of 38,994.70 earlier. Japanese shares ended modestly higher on Tuesday.

Market heavyweight SoftBank Group is losing more than 1 percent and Uniqlo operator Fast Retailing is also down more than 1 percent. Among automakers, Honda is losing almost 1 percent and Toyota is also down almost 1 percent.

In the tech space, Advantest is gaining almost 1 percent, Tokyo Electron is advancing more than 2 percent and Screen Holdings is surging more than 5 percent.

In the banking sector, Sumitomo Mitsui Financial is gaining 2.5 percent, Mizuho Financial is adding 1.5 percent and Mitsubishi UFJ Financial is up almost 1 percent.

Among the major exporters, Panasonic is declining more than 2 percent and Mitsubishi Electric is losing more than 1 percent, while Sony and Canon are flat.

Among other major losers, there are no other major losers.

Conversely, Sapporo Holdings and Sumco are surging more than 5 percent, while Shizuoka Financial is gaining more than 4 percent. Taisei, Yokogawa Electric and Nidec are adding almost 4 percent each, while Oji Holdings is up more than 3 percent. M3, Concordia Financial, Sumitomo Chemical, AGC and Kubota are advancing almost 3 percent each.

In economic news, Japan posted a merchandise trade deficit of 2.758 trillion yen in January, the Ministry of Finance said on Wednesday. That missed forecasts for a shortfall of 2.104 trillion yen following the 132.5 billion yen surplus in December.

Exports gained 7.2 percent on year to 7.863 trillion yen, shy of expectations for an increase of 7.9 percent following the 2.8 percent gain in the previous month. Imports surged an annual 16.7 percent to 10.622 trillion yen versus forecasts for an increase of 9.7 percent and up from 1.7 percent a month earlier.

Meanwhile, the total value of core machinery orders in Japan was down a seasonally adjusted 1.2 percent on month in December, the Cabinet Office said on Wednesday – coming in at 889.3 billion yen. That missed forecasts for an increase of 0.4 percent following the 3.4 percent gain in November. On a yearly basis, orders rose 4.3 percent – again shy of expectations for an increase of 5.9 percent following the 10.3 percent spike in the previous month.

For the fourth quarter of 2024, core machinery orders improved 2.9 percent on quarter and 6.6 percent on year at 2.658 trillion yen. For the first quarter of 2025, orders are forecast to sink 2.3 percent on quarter and gain 0.4 percent on year at 2.598 trillion yen.

In the currency market, the U.S. dollar is trading in the higher 151 yen-range on Wednesday.

Elsewhere in Asia, South Korea is up 1.8 percent, while New Zealand, China and Singapore are higher by between 0.1 and 0.7 percent each. Hong Kong, Malaysia, Taiwan and Indonesia are lower by between 0.2 and 0.4 percent each.

On the Wall Street, stocks showed a lack of direction throughout much of the trading session on Tuesday, extending the lackluster performance seen during last Friday’s session. The major averages moved to the upside going into end the day, however, with the S&P 500 reaching a new record closing high.

The major averages all posted modest gains on the day. The S&P 500 rose 14.95 points or 0.2 percent to 6,129.58, the Nasdaq inched up 14.49 points or 0.1 percent to 20,041.26 and the Dow crept up 10.26 points or less than a tenth of a percent to 44,556.34.

The major European markets all also moved to the upside on the day. While the German DAX Index and the French CAC 40 Index both rose by 0.2 percent, U.K.’s FTSE 100 Index ended the day nearly unchanged.

Crude oil prices moved higher on Tuesday on supply concerns after Ukraine launched a drone attack on an export pipeline in Russia. West Texas Intermediate Crude oil futures for March settled at $71.85 a barrel, gaining $1.11, or 1.57 percent.

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