Asian Markets Mostly Higher

Asian stock markets are trading mostly higher on Monday, following the mixed cues from global markets on Friday, as traders seem reluctant to make significant moves ahead of the US Fed’s highly anticipated monetary policy meeting this week. With the Fed widely expected to raise interest rates by another 25 basis point, traders are likely to pay close attention to the accompanying statement for clues about the outlook for rates. Asian markets closed mostly lower on Friday.

Traders also looked ahead to central bank meetings in Europe and Japan this week for further clues on the rate outlook.

The Australian stock market is slightly higher in choppy trading on Monday, recouping some of the losses in the previous session, with the benchmark S&P/ASX 200 staying above the 7,300 level, following the mixed cues from global markets on Friday, with gains in energy stocks amid a spike in crude oil prices. Traders are not making any significant moves ahead of the domestic inflation data out on Wednesday.

The benchmark S&P/ASX 200 Index is gaining 6.30 points or 0.09 percent to 7,320.20, after touching a high of 7,333.20 earlier. The broader All Ordinaries Index is up 6.10 points or 0.08 percent to 7,532.90. Australian stocks closed modestly lower on Friday.

Among the major miners, BHP Group is edging down 0.1 percent and Mineral Resources is losing more than 1 percent, while Fortescue Metals and Rio Tinto are flat.

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

Among tech stocks, WiseTech Global is gaining more than 1 percent, Appen is edging up 0.5 percent and Afterpay owner Block is advancing almost 1 percent, while Xero is losing more than 1 percent. Zip is flat.

Gold miners are mixed. Gold Road Resources is gaining almost 1 percent, Evolution Mining is edging up 0.1 percent and Newcrest Mining is adding more than 1 percent, while Northern Star Resources is edging down 0.2 percent and Resolute Mining is losing almost 2 percent.

Among the big four banks, Commonwealth Bank, Westpac and National Australia Bank are edging up 0.1 percent each, while ANZ Banking is edging down 0.2 percent.

In other news, shares in Core Lithium are plunging almost 13 percent after the release of its activity report that showed output levels came in below expectations due to inclement weather.

In economic news, the manufacturing sector in Australia continued to contract in July, albeit at a slower pace, the latest survey from Judo Bank revealed on Monday with a manufacturing PMI score of 49.6. That’s up from 48.2 in June, 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 from 50.3 in June to 48.0 in July, and the composite index slipped from 50.1 in June to 48.3 in July.

In the currency market, the Aussie dollar is trading at $0.673 on Monday.

The Japanese stock market is sharply higher on Monday, recouping the losses in the previous two sessions, with the Nikkei 225 moving a tad above the 32,700 level, following the mixed cues from global markets on Friday, with gains in most index heavyweights, exporters and technology stocks partially offset by weakness in financial stocks.

The benchmark Nikkei 225 Index closed the morning session at 32,700.71, up 396.46 or 1.23 percent, after touching a high of 32,756.62 earlier. Japanese shares ended notably lower on Friday.

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

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

In the banking sector, Sumitomo Mitsui Financial is losing almost 1 percent, Mitsubishi UFJ Financial is declining almost 2 percent and Mizuho Financial is down almost 1 percent.

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

Among other major gainers, Mitsubishi Motors is surging more than 7 percent and Mazda Motor is gaining almost 4 percent, while Hitachi Construction Machinery and Kobe Steel are adding more than 3 percent each. Furukawa Electric, Subaru, Nissan Motor, JFE Holdings, Japan Steel Works and Tokyu Fudosan Holdings are up almost 3 percent each.

Conversely, there are no other major losers.

In economic news, the manufacturing sector in Japan continued to contract in July, and at a faster pace, the latest survey from Jibun Bank revealed on Monday with a manufacturing PMI score of 49.4. That’s down from 49.8 in June, and it moves further beneath the boom-or-bust line of 50 that separates expansion from contraction. The survey also showed that the services PMI fell from 54.0 in June to 53.9 in July.

In the currency market, the U.S. dollar is trading in the lower 141 yen-range on Monday.

Elsewhere in Asia, South Korea is up 0.9 percent, while New Zealand, China, Malaysia, Taiwan and Indonesia are higher by between 0.1 and 0.4 percent each. Hong Kong and Singapore are down 1.2 and 0.6 percent, respectively.

On Wall Street, stocks showed a lack of direction throughout much of the trading day on Friday following the mixed performance seen during Thursday’s session. The major averages spent the day bouncing back and forth across the unchanged line.

The major averages eventually ended the day narrowly mixed. While the Nasdaq slipped 30.50 points or 0.2 percent to 14,032.81, the Dow inched up 2.51 points or less than a tenth of a percent to 35,227.69 and the S&P 500 crept up 1.47 points or less than a tenth of a percent to 4,536.34.

The major European markets also finished the day mixed. While the German DAX Index edged down 0.2 percent, the U.K.’s FTSE 100 Index rose 0.2 percent and the French CAC 40 Index climbed 0.7 percent.

Crude oil prices settled higher on Friday, lifted by data showing a drop in U.S. crude inventories and recent announcements by Saudi Arabia and Russia about crude output reductions. West Texas Intermediate Crude oil futures for September rose $1.42 or 1.9 percent at 77.07 a barrel. WTI Crude futures gained 2.3 percent in the week.

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