Asian stock markets are showing mixed performance on Tuesday, influenced by varied cues from Wall Street overnight. Traders are cautious ahead of key US inflation data expected later today and tomorrow, which could affect interest rate forecasts. Most Asian markets finished Monday on a positive note.
There's optimism about a potential interest rate cut by the US Federal Reserve in September. The CME Group's FedWatch Tool indicates a 51.5% probability for a 25 basis points cut and a 48.5% chance for a 50 basis points cut.
The Australian stock market is continuing its upward trend for the third consecutive session. Despite starting in the red, it has turned slightly higher, bolstered by mixed Wall Street cues. The benchmark S&P/ASX 200 remains above the 7,800 level, with gains across most sectors, particularly gold miners and technology stocks.
The S&P/ASX 200 Index has risen by 8.90 points, or 0.11%, to 7,822.60, reaching a high of 7,828.60 and a low of 7,801.60. The All Ordinaries Index has climbed 10.00 points, or 0.13%, to 8,038.50. Australian stocks ended notably higher on Monday.
Among major miners, BHP Group and Rio Tinto are slightly up by 0.1 to 0.2 percent each, while Mineral Resources is down by almost 3 percent. Fortescue Metals remains unchanged.
Oil stocks are mostly advancing, with Woodside Energy and Origin Energy edging up by 0.4 percent each. Beach Energy is up more than 1 percent, and Santos has added almost 1 percent.
In the tech sector, Appen has edged up by 0.4 percent, Xero has gained nearly 1 percent, while Zip has dropped nearly 1 percent. Block, the owner of Afterpay, is down more than 1 percent, and WiseTech Global has slipped almost 3 percent. Gold miners are generally higher, with Gold Road Resources up by 3.5 percent, Northern Star Resources adding almost 3 percent, and Resolute Mining surging nearly 5 percent. Evolution Mining and Newmont are both up by more than 2 percent each.
Among the big four banks, Commonwealth Bank and National Australia Bank have edged up by 0.3 to 0.4 percent each, while Westpac and ANZ Banking have both gained nearly 1 percent.
Temple & Webster shares have skyrocketed by more than 23 percent following record revenues for the 2024 financial year, up 26 percent from the previous year. Conversely, Seek shares have plummeted by over 9 percent due to a decline in job ads affecting their bottom line.
The Australian dollar is trading at $0.659 on Tuesday.
In post-holiday trading, the Japanese stock market is significantly higher, with the Nikkei 225 surging over 2.5 percent to above the 35,900 level, driven by strong gains across all sectors, especially index heavyweights and technology stocks.
The Nikkei 225 Index closed the morning session at 35,785.55, up by 760.55 points or 2.17 percent, after reaching a high of 36,025.92. Japanese shares ended considerably higher last Friday before the holiday on Monday.
Notable gainers include SoftBank Group, which is up by more than 4 percent, and Fast Retailing, which has added almost 1 percent. Among automakers, Honda has gained nearly 2 percent, and Toyota has added over 3 percent.
In the technology sector, Advantest and Tokyo Electron are both up by almost 6 percent, while Screen Holdings has advanced more than 6 percent.
In banking, Mitsubishi UFJ Financial has gained more than 1 percent, and Mizuho Financial has advanced almost 4 percent, while Sumitomo Mitsui Financial remains flat.
Leading exporters are mostly up; Panasonic is down by 0.2 percent, while Sony is up by over 5 percent. Mitsubishi Electric has added more than 4 percent, and Canon is up by almost 1 percent.
Significant gainers include Rakuten Group, soaring more than 9 percent, and Trend Micro, up by more than 8 percent. Ebara and Sompo Holdings have both surged by more than 7 percent, while Keyence, Tokio Marine, and Odakyu Electric Railway are up nearly 7 percent. Nitto Denko, Kawasaki Kisen Kaisha, TDK, and IHI have all added over 6 percent each, while Socionext and Kawasaki Heavy Industries are up almost 6 percent.
Conversely, Sharp has plummeted by over 6 percent, while Yamato Holdings and Meiji Holdings have each dropped more than 4 percent. Nippon Express is down by nearly 4 percent.
The U.S. dollar is trading in the lower 147 yen-range on Tuesday.
Elsewhere in Asia, markets in China, South Korea, Malaysia, and Taiwan are up by between 0.1 and 0.3 percent each. New Zealand, Singapore, and Indonesia have gained between 0.2 and 0.9 percent each. Hong Kong remains relatively flat.On Wall Street, stocks experienced fluctuations throughout Monday's trading session, ultimately closing with minimal changes. The major indices oscillated around the unchanged line, concluding the day with mixed results.
Specifically, the Dow Jones Industrial Average dipped by 140.53 points, or 0.4%, to settle at 39,357.01. Meanwhile, the S&P 500 edged up by a marginal 0.23 points, less than 0.1%, to finish at 5,344.39. The Nasdaq Composite, however, gained 35.31 points, or 0.2%, closing at 16,780.61.
In Europe, the major markets delivered a similarly mixed performance. The French CAC 40 Index declined by 0.3%, while the German DAX Index remained virtually unchanged, and the U.K.'s FTSE 100 Index rose by 0.5%.
Crude oil prices surged on Monday, driven by concerns over potential supply disruptions stemming from escalating tensions in the Middle East. This overshadowed OPEC's latest monthly report, which revised down the demand forecast for 2024. West Texas Intermediate crude oil futures for September concluded the session up $3.22, or approximately 4.2%, at $80.06 per barrel.
