Asian markets are seeing a downward trend on Thursday, influenced by negative signals from global markets overnight. This slump comes amid increasing bond yields and uncertainty surrounding the U.S. Federal Reserve's forthcoming interest-rate decisions, especially with key inflation data looming. On Wednesday, most Asian markets also closed in the negative.
A critical report on U.S. personal income and spending for April, set to release on Friday, includes preferred inflation metrics watched by the Fed. Concerns are mounting that elevated inflation readings could prompt the Fed to maintain higher interest rates at their next policy meeting on June 11-12.
In Australia, the market is significantly down, marking an eighth consecutive day of losses. The S&P/ASX 200 is approaching the 7,600 mark, with notable declines in sectors such as mining, energy, and technology. Currently, the S&P/ASX 200 is losing 39.20 points or 0.51 percent to 7,626.40, while the broader All Ordinaries Index is down 40.40 points or 0.51 percent to 7,895.30. On Wednesday, Australian stocks experienced a sharp decline.
Major mining stocks are underperforming: Rio Tinto is down nearly 1 percent, Fortescue Metals almost 2 percent, and BHP Group alongside Mineral Resources are both falling over 1 percent. The energy sector is also weak, with Woodside Energy, Beach Energy, and Santos each declining by more than 1 percent, and Origin Energy falling almost 1 percent.
In the tech sector, Afterpay owner Block is slightly down by 0.2 percent, Appen is dropping almost 2 percent, and WiseTech Global and Zip are both losing over 1 percent each. Xero, however, is seeing gains of more than 1 percent.
Among the big four banks, Commonwealth Bank and ANZ Banking are slightly down by 0.1 to 0.2 percent, while Westpac is up by 0.3 percent, and National Australia Bank remains flat. Gold miners such as Evolution Mining, Northern Star Resources, and Newmont are each down over 1 percent, with Gold Road Resources and Resolute Mining declining nearly 2 percent.
On a brighter note, shares in Catapult Sports surged 11 percent following a report of reduced net losses along with an 18.5 percent increase in sales for the twelve months ending March 31.
In the currency market, the Australian dollar is trading at $0.661 on Thursday. Similarly, Japan's market is sharply down, extending losses from the previous sessions. The Nikkei 225 has plummeted below the 37,000 mark, affected by significant weakness in tech stocks and other index-heavy sectors.
The Nikkei 225 Index closed the morning session at 37,974.47, down 582.40 points or 1.51 percent. Key players like SoftBank Group and Fast Retailing (Uniqlo) are down over 3 percent. In the automobile sector, Toyota is nearly 2 percent lower, and Honda over 1 percent down.
Japan's tech sector is witnessing steep declines: Advantest is down more than 6 percent, Tokyo Electron over 3 percent, and Screen Holdings by 1.5 percent. Major banks like Sumitomo Mitsui Financial, Mitsubishi UFJ Financial, and Mizuho Financial are each slightly down by 0.2 to 0.5 percent.
Among the major exporters, Canon and Mitsubishi Electric are experiencing significant losses, while others like Panasonic and Sony are marginally down. Terumo, Mitsubishi Electric, and Tokyo Electric Power are among the major losers, plunging over 5 percent each.
Conversely, notable gainers are absent.
In currency trading, the U.S. dollar is hovering in the lower 157 yen range on Thursday.
Other Asian markets are seeing declines as well: Indonesia is down 1.1 percent, while New Zealand, Hong Kong, Singapore, South Korea, Malaysia, and Taiwan are each down by 0.1 to 0.8 percent. China remains relatively flat.
On Wall Street, stock indexes dropped across the board on Wednesday. Following a mixed performance on Tuesday, the Dow plummeted to its lowest closing level in nearly a month. The Dow fell 411.32 points or 1.1 percent to 38,441.54, the S&P 500 slipped 39.09 points or 0.7 percent to 5,266.95, and the Nasdaq declined 99.30 points or 0.6 percent to 16,920.58.European markets experienced a downturn today. The French CAC 40 Index decreased by 1.5%, the German DAX Index declined by 1.1%, and the UK's FTSE 100 Index fell by 0.9%.
Crude oil prices dropped on Wednesday due to concerns about future interest rates and potential negative effects of high borrowing costs on energy demand. West Texas Intermediate Crude oil futures for July fell by $0.60 to $79.23 per barrel.
