Asian Markets Track Wall Street Higher

Asian stock markets are trading mostly higher on Friday, following the broadly positive cues from global markets overnight, as traders are upbeat about the rising prospects of an interest rate cut by the US Fed next week, and probability of a series of interest rate cuts before the end of the year, in the wake of recent data on US inflation. Asian markets ended mostly higher on Thursday.

While the data has seemingly reduced the likelihood the Fed will cut rates by 50 basis points next week, rates are still expected to be notably lower by the end of the year. CME Group’s FedWatch Tool currently suggests rates will be lower by at least a full percentage point following the Fed’s December meeting.

The Australian stock market is modestly higher on Friday, adding to the gains in the previous session, following the broadly positive cues from global markets overnight. The benchmark S&P/ASX 200 is moving a tad above the 8,100 level to near all-time highs, with gains across most sectors led by miners and energy stocks amid spiking commodity prices.

The benchmark S&P/ASX 200 Index is gaining 27.90 points or 0.35 percent to 8,103.60, after touching a high of 8,143.60 earlier. The broader All Ordinaries Index is up 33.60 points or 0.41 percent to 8,326.70. Australian markets ended significantly higher on Thursday.

Among major miners, BHP Group and Rio Tinto are gaining more than 1 percent each, while Mineral Resources is edging up 0.3 percent and Fortescue Metals is adding almost 2 percent.

Oil stocks are mostly higher. Woodside Energy is advancing 2.5 percent, Santos is adding more than 1 percent and Beach energy is gaining almost 1 percent, while Origin Energy is edging down 0.3 percent.

Among tech stocks, Afterpay owner Block is edging down 0.4 percent, while Zip is surging more than 5 percent, WiseTech Global is gaining almost 1 percent, Xero is edging up 0.4 percent and Appen is advancing more than 3 percent.

Among the big four banks, Commonwealth Bank, ANZ Banking and Westpac are edging up 0.4 to 0.5 percent each, while National Australia Bank is gaining almost 1 percent.

Gold miners are mostly higher. Evolution Mining is surging almost 6 percent, Northern Star Resources is gaining more than 4 percent, Newmont is advancing almost 4 percent, Gold Road Resources is adding almost 5 percent and Resolute Mining is up more than 2 percent.

In the currency market, the Aussie dollar is trading at $0.672 on Friday.

Giving up some of the strong gains in the previous session, the Japanese stock market is notably lower in choppy trading on Friday, despite the broadly positive cues from global markets overnight. The benchmark Nikkei 225 is falling to a tad near the 36,500 level, as traders react to Bank of Japan board’s comment that the central bank must push up short-term rates to at least around 1% through fiscal 2026 to stably achieve the 2% inflation target.

The benchmark Nikkei 225 Index closed the morning session at 36,507.10, down 326.17 points or 0.89 percent, after hitting a low of 36,502.27 earlier. Japanese stocks closed sharply higher on Thursday.

Market heavyweight SoftBank Group is losing almost 1 percent and Uniqlo operator Fast Retailing is edging down 0.2 percent. Among automakers, Honda is losing almost 1 percent and Toyota is declining almost 2 percent.

In the tech space, Advantest is gaining more than 1 percent and Tokyo Electron is edging up 0.5 percent, while Screen Holdings is edging down 0.3 percent.

In the banking sector, Mitsubishi UFJ Financial is flat, while Mizuho Financial and Sumitomo Mitsui Financial are edging up 0.1 to 0.2 percent each.

Among major exporters, Mitsubishi Electric is gaining almost 1 percent, while Sony is declining almost 1 percent, Canon is losing more than 2 percent and Panasonic is slipping more than 1 percent.

Among other major losers, Astellas Pharma and NEXON are declining more than 3 percent each, while CyberAgent, Konami Group, NEC, Ajinomoto and Minebea Mitsumi are losing almost 3 percent each.

Conversely, Kawasaki Heavy Industries is surging more than 8 percent, Isetan Mitsukoshi is gaining almost 4 percent and Ebara is adding more than 3 percent, while Socionext, Shiseido and Disco are advancing almost 3 percent each.

In the currency market, the U.S. dollar is trading in the higher 140 yen-range on Friday.

Elsewhere in Asia, Hong Kong is up 1.7 percent, while China, Singapore, Malaysia, Taiwan and Indonesia are higher by between 0.2 and 0.4 percent each. New Zealand is bucking the trend and is down 0.3 percent. South Korea is relatively flat.

On Wall Street, stocks moved notably higher over the course of the trading day on Thursday after turning in a lackluster performance early in the session. The Nasdaq and the S&P 500 added to strong gains posted in Wednesday’s session, closing higher for the fourth straight day.

The major averages all finished the day firmly in positive territory. The Nasdaq jumped 174.15 points or 1.0 percent to 17,569.68, the S&P 500 advanced 41.63 points or 0.8 percent to 5,595.76 and the Dow climbed 235.06 points or 0.6 percent to 41,096.77.

The major European markets also moved to the upside on the day. While the German DAX Index jumped by 1.0 percent, the U.K.’s FTSE 100 Index and the French CAC 40 Index climbed by 0.6 percent and 0.5 percent, respectively.

Crude oil prices climbed higher on Thursday amid reports of supply cuts in facilities along the Gulf of Mexico due to the impact of Hurricane Francine, despite the International Energy Agency lowering its oil demand forecast for the year. West Texas Intermediate Crude oil futures for October ended up by $1.66 or nearly 2.5 percent at $68.97 a barrel.