Asian Markets Trade Mostly Higher

Asian stock markets are trading mostly higher on Friday, following the broadly positive cues from Wall Street overnight, fueled largely by strength in materials and energy stocks amid higher commodity prices. Technology stocks also gained to mirror their peers on the tech-heavy Nasdaq. Asian markets ended mostly lower on Thursday.

The markets also reflected optimism that the Federal Reserve could alter its plans to aggressively raise interest rates in the light of some weak US economic data, particularly disappointing private sector jobs data.

The Australian stock market is significantly higher on Friday, recouping the losses in the previous session, with the benchmark S&P/ASX 200 moving above the 7,200 level, following the broadly positive cues from Wall Street overnight, with strength in materials and energy stocks amid higher commodity prices. Technology stocks also gained to mirror their peers on the tech-heavy Nasdaq.

The benchmark S&P/ASX 200 Index is gaining 47.40 points or 0.66 percent to 7,223.30, after touching a high of 7,254.60 earlier. The broader All Ordinaries Index is up 57.90 points or 0.78 percent to 7,458.70. Australian markets ended significantly lower on Thursday.

Among major miners, Rio Tinto is gaining almost 3 percent, BHP Group is up more than 2 percent, OZ Minerals is adding almost 4 percent, Fortescue Metals is rising 3.5 percent and Mineral Resources is advancing almost 5 percent.

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

Among tech stocks, WiseTech Global is adding more than 5 percent, Xero is up more than 3 percent and Afterpay owner Block is advancing 4.5 percent, while Appen and Zip are gaining almost 2 percent each.

Among the big four banks, Commonwealth Bank, ANZ Banking, Westpac and National Australia Bank are edging up 0.3 to 0.5 percent each.

Gold miners are higher. Northern Star Resources and Evolution Mining are gaining 3.5 percent each, while Resolute Mining is adding 2.5 percent, Gold Road Resources is advancing 5.5 percent and Newcrest Mining is up more than 2 percent.

In economic news, the services sector in Australia continued to expand in May, albeit at a slower pace, the latest survey from S&P Global revealed on Friday with a services PMI score of 53.2. That’s down from 56.1 in April, although it remains above the boom-or-bust line of 50. This marked the fourth consecutive month in which business activity in the Australia service sector rose, albeit at the slowest pace in the current sequence. The survey also showed that the composite index fell to 52.9 in May from 55.9 in April.

In the currency market, the Aussie dollar is trading at $0.726 on Friday.

The Japanese stock market is significantly higher on Friday, recouping the losses in the previous session, with the benchmark Nikkei 225 moving above the 27,700 level, following the broadly positive cues from Wall Street overnight, with gains across most sectors as Japan takes gradual steps toward a wider reopening of its borders, with the country looking to raise daily entry cap on the number of visitor arrivals to 30,000 in July after opening up to tourists from June 10.

The benchmark Nikkei 225 Index closed the morning session at 27,713.23, up 299.35 points or 1.09 percent, after touching a high of 27,776.33 earlier. Japanese shares closed slightly lower on Thursday.

Market heavyweight SoftBank Group is gaining almost 3 percent and Uniqlo operator Fast Retailing is surging more than 6 percent. Among automakers, Honda is losing almost 1 percent and Toyota is declining almost 2 percent.

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

In the banking sector, Mitsubishi UFJ Financial is gaining almost 1 percent, Mizuho Financial is edging up 0.2 percent and Sumitomo Mitsui Financial is flat.

Among major exporters, Sony is gaining more than 1 percent and Panasonic is adding almost 1 percent, while Canon and Mitsubishi Electric are edging down 0.1 to 0.2 percent each.

Among the other major gainers, Pacific Metals is soaring almost 6 percent and Tokai Carbon is gaining almost 4 percent, while Showa Denko K.K. and Sumitomo Metal Mining is adding almost 3 percent each.

Conversely, Tosoh is losing more than 3 percent and Denso is down more than 2 percent.

In economic news, the services sector in Japan continued to expand in May, and at a faster rate, the latest survey from Jibun Bank revealed on Friday with a services PMI score of 52.6. That’s up from 50.7 in April, and it moves further above the boom-or-bust line of 50. The survey also showed that the composite index rose to 52.3 in May from 51.1 in April.

In the currency market, the U.S. dollar is trading in the higher 129 yen-range on Friday.

Elsewhere in Asia, New Zealand, Singapore, South Korea and Indonesia are higher by between 0.1 to 0.9 percent each. Malaysia is bucking the trend and is edging down 0.3 percent. Markets in China, Hong Kong and Taiwan are closed for the Dragon Boat Festival.

On Wall Street, stocks showed a substantial turnaround over the course of the trading session on Thursday. The rally on the day more than offset the pullback seen over the two previous sessions, with the major averages reaching their best closing levels in almost a month.

The major averages recovered from early weakness to end the day sharply higher. The Dow jumped 435.05 points or 1.3 percent to 33,248.28, the Nasdaq spiked 322.44 points or 2.7 percent to 12,316.90 and the S&P 500 surged 75.59 points or 1.8 percent to 4,176.82.

The major European markets also all moved to the upside on the day, with the markets in London closed for the Queen’s Platinum Jubilee. The French CAC 40 Index jumped by 1.3 percent and the German DAX Index shot up by 1 percent.

Crude oil moved notably higher on Thursday after the Energy Information Administration released a report showing a much bigger than expected weekly decrease in U.S. crude oil inventories last week. Crude for July delivery jumped $1.61 or 1.4 percent to $116.87 a barrel.

Business News