Asian Markets Mostly Lower

Asian stock markets are trading mostly lower on Thursday, following the mostly negative cues from global markets overnight, as traders are nervous over the outlook for interest rates as the Bank of Canada once again raised interest rates after leaving rates unchanged for two straight meetings. Asian Markets closed mixed on Wednesday.

The US Federal Reserve is scheduled to announce its latest monetary policy decision next Wednesday, with the central bank widely expected to leave interest rates unchanged. CME Group’s FedWatch Tool is currently indicating 67.9 percent chance the Fed will leave rates unchanged next week but a 32.1 percent chance of another rate hike in July.

The Australian stock market is slightly lower on Thursday, extending the losses in the previous two sessions, with the benchmark S&P/ASX 200 staying above the 7,100 level, following the mostly negative cues from global markets overnight, with losses in gold miners and technology stocks, almost offset by gains in iron ore miners and energy stocks amid firmer commodity prices.

The benchmark S&P/ASX 200 Index is losing 7.20 points or 0.10 percent to 7,110.80, after hitting a low of 7,102.30 earlier. The broader All Ordinaries Index is down 12.80 points or 0.18 percent to 7,297.60. Australian stocks ended modestly lower on Wednesday.

Among major miners, BHP Group, Rio Tinto and Fortescue Metals are gaining more than 1 percent each, while Mineral Resources is edging down 0.5 percent.

Oil stocks are mostly higher. Santos and Woodside Energy are gaining more than 1 percent each, while Beach energy is advancing almost 3 percent and Origin Energy is edging up 0.1 percent.

In the tech space, Xero is declining almost 3 percent, Afterpay owner Block is edging down 0.3 percent, WiseTech Global is losing more than 1 percent and Appen is down 1.5 percent. Zip is in a trading halt.

Among the big four banks, National Australia Bank is edging up 0.3 percent and Westpac is gaining almost 1 percent, while ANZ Banking is edging down 0.3 percent. Commonwealth Bank is flat.

Among gold miners, Evolution Mining and Gold Road Resources are losing almost 2 percent each, while Northern Star Resources is slipping almost 3 percent, Newcrest Mining is down more than 1 percent and Resolute Mining is declining almost 4 percent.

In the currency market, the Aussie dollar is trading at $0.667 on Thursday.

The Japanese stock market is slightly lower in choppy trading on Thursday, extending the losses in the previous session, with the Nikkei 225 falling below the 31,900 level, following the mostly negative cues from global markets overnight, as traders reacted to GDP data released earlier in the day.

The benchmark Nikkei 225 Index closed the morning session at 31,871.23, down 42.51 points or 0.13 percent, after hitting a low of 31,848.52 and a high of 32,035.95 earlier. Japanese stocks closed sharply lower on Wednesday.

Market heavyweight SoftBank Group is edging up 0.5 percent and Uniqlo operator Fast Retailing is gaining more than 1 percent. Among automakers, Toyota is gaining more than 1 percent, while Honda is adding almost 1 percent.

In the tech space, Screen Holdings is gaining 1.5 percent, Tokyo Electron is edging up 0.5 percent and Advantest is adding almost 1 percent.

In the banking sector, Mitsubishi UFJ Financial, Sumitomo Mitsui Financial and Mizuho Financial are gaining almost 1 percent each.

Among the major exporters, Mitsubishi Electric is edging up 0.3 percent and Panasonic is advancing almost 2 percent, while Canon is edging down 0.4 percent and Sony is losing almost 1 percent.

Among the other major losers, Citizen Watch is losing almost 6 percent, NEXON is declining almost 5 percent and Hoya is down more than 3 percent.

Conversely, Eisai is soaring more than 9 percent, Tokyo Electric Power is gaining more than 5 percent and Kobe Steel is adding more than 3 percent, while Hitachi Construction Machinery, Kansai Electric Power, Kawasaki Kisen Kaisha, Central Japan Railway, Osaka Gas and Nippon Yusen K.K. are all advancing almost 3 percent each.

In other news, shares in Eisai are soaring more than 9 after the US FDA revealed that data from a late-stage trial of Eisai and Biogen’s Alzheimer’s disease drug suggests it offered a meaningful benefit to patients and could win a traditional approval without safety concerns hampering it.

In economic news, Japan’s gross domestic product expanded a seasonally adjusted 0.7 percent on quarter in the first three months of 2023, the Cabinet Office said on Thursday. That beat forecasts for an increase of 0.4 percent following the flat reading in the three months prior. On an annualized basis, GDP climbed 2.7 percent on year – also topping expectations for a gain of 1.6 percent following the 0.1 percent rise in the previous three months.

Overall bank lending in Japan was up 3.4 percent on year in May, the Bank of Japan said on Thursday – coming in at 602.335 trillion yen. That exceeded expectations for an increase of 3.1 percent and was up from 3.2 percent in April. Excluding trusts, lending climbed an annual 3.8 percent to 525.376 trillion yen – accelerating from 3.5 percent in the previous month.

In the currency market, the U.S. dollar is trading in the higher 139 yen-range on Thursday.

Elsewhere in Asia, New Zealand, China, Hong Kong, Singapore South Korea, Taiwan and Malaysia are lower by between 0.2 and 0.6 percent each, while Indonesia is bucking the trend and is up 0.1 percent.

On Wall Street, stock moved in opposite directions during trading on Wednesday following the lackluster performance to start the week. While the tech-heavy Nasdaq moved sharply lower, the Dow posted a modest gain.

The Nasdaq tumbled 171.52 points or 1.3 percent to 13,104.90 after ending Tuesday’s trading at its best closing level in well over a year. The S&P 500 also fell 16.33 points or 0.4 percent to 4,267.52, while the Dow rose 91.74 points or 0.3 percent to 33,665.02.

Meanwhile, the major European markets moved slightly lower on the day. While the German DAX Index dipped by 0.2 percent, the French CAC 40 Index and the U.K.’s FTSE 100 Index both edged down by 0.1 percent.

Crude oil prices climbed higher on Wednesday as Saudi Arabia’s recent decision to cut crude output outweighed concerns about demand, while data showing a drop in U.S. crude inventories last week also supported prices. West Texas Intermediate Crude oil futures for July ended higher by $0.79 or 1.1 percent at $72.53 a barrel.