Asian stock markets exhibited a mixed performance on Monday, reflecting the uncertain signals from Wall Street on Friday. This fluctuation was largely influenced by the sharp decline in the South Korean market due to the ongoing political unrest in the nation, alongside persistent tensions in the Middle East and the conflict involving Russia and Ukraine. Investors remain hopeful regarding interest rate projections following the latest set of U.S. economic indicators, which include employment numbers and consumer sentiment data. Asian markets had closed on a mixed note on Friday.
In Australia, the stock market is experiencing a moderate decline this Monday, continuing the downward trend from the previous session, influenced by mixed signals from Wall Street. The S&P/ASX 200 index has dropped below 8,400, with most sectors, particularly mining and energy stocks, showing weakness. However, technology stocks have emerged as the only area of growth.
Traders are approaching the Reserve Bank of Australia’s board meeting with caution, particularly in anticipation of the cash rate decision expected on Tuesday, where the RBA is predicted to maintain the current rates.
Currently, the S&P/ASX 200 Index has decreased by 17.90 points or 0.21% to 8,403.00, having earlier hit a low of 8,371.10. Meanwhile, the All Ordinaries Index has dipped 19.20 points or 0.22% to 8,670.10. Australian stocks had notably declined by the close on Friday.
Among leading mining companies, BHP Group and Rio Tinto have each lost over 1%, Fortescue Metals has fallen over 3%, and Mineral Resources is down nearly 1%. In the oil sector, most stocks are on a downward trend. Woodside Energy is down more than 2%, Origin Energy has edged lower by 0.5%, Santos is down nearly 2%, and Beach Energy is slipping over 6%.
In technology, Afterpay's parent company, Block, has risen over 2%, while Xero, WiseTech Global, and Zip have each edged up by 0.2% to 0.5%. Appen, however, has dropped more than 1%.
Gold mining stocks are largely declining. Evolution Mining is down more than 1%, and Resolute Mining has plunged nearly 6%. Northern Star Resources, Gold Road Resources, and Newmont have all edged down by 0.2% to 0.3%.
Regarding banks, Westpac and National Australia Bank have each fallen by nearly 1%, ANZ Banking has declined almost 3%, and Commonwealth Bank has edged down by 0.1%.
In corporate developments, shares in Platinum Asset Management have plummeted nearly 17% after Regal Partners ceased takeover discussions with the fund manager, with no new agreement reached.
In currency markets, the Australian dollar is trading at $0.640 on Monday.
Turning to Japan, the stock market displayed modest gains after initially slipping into negative territory, reversing previous session losses. The benchmark Nikkei 225 Index is close to the 39,200 level, drawing from mixed Wall Street cues, with gains in some major companies and automakers being partially counterbalanced by losses in technology stocks.
The Nikkei 225 Index closed the morning session at 39,197.57, up by 106.40 points or 0.27%, after reaching a peak of 39,332.55 earlier. Japanese shares had ended significantly lower on Friday.
Key players such as SoftBank Group have risen by over 2%, and Uniqlo’s operator, Fast Retailing, has added over 1%. Among automakers, Honda has gained nearly 1%, and Toyota has moved up by 0.3%.
In the technology sector, Screen Holdings is down 1.5%, and Advantest has decreased by nearly 5%. Tokyo Electron has edged lower by 0.2%.
In banking, Sumitomo Mitsui Financial has risen by almost 1%, although Mitsubishi UFJ Financial has edged down by 0.2%. Mizuho Financial remains unchanged.
Major exporters are posting mixed results. Panasonic and Sony have each gained nearly 2%, with Canon edging up by 0.5%. Mitsubishi Electric has declined by almost 1%.
Among other significant gainers, Rakuten Group is surging by over 7%, while Yamato Holdings and Nomura Research Institute have each risen by almost 5%. BANDAI NAMCO, Recruit Holdings, and NEXON have advanced by nearly 3% each.
Conversely, ZOZO has decreased by almost 3%.
In economic developments, Japan’s gross domestic product (GDP) expanded by a seasonally adjusted 0.3% quarter-on-quarter in the third quarter of 2024, as reported by the Cabinet Office on Monday, surpassing expectations of a 0.2% increase following the revised 0.5% increase in the previous quarter (initially reported as 0.2%). On an annual basis, GDP rose by 1.2%, exceeding the forecasted 0.9% increase. Capital expenditure fell by 0.1% quarter-on-quarter, better than forecasts of a 0.2% decline. External demand was down 0.1% quarter-on-quarter, while the GDP price index climbed by an annual rate of 2.4%, and private consumption increased by 0.7% quarter-on-quarter.In the currency exchange arena, the U.S. dollar is currently trading in the upper region of the 149-yen bracket as of Monday.
Across the Asian markets, modest gains were observed with New Zealand, China, Hong Kong, Taiwan, and Indonesia all advancing by 0.1 to 0.5 percent. However, South Korea experienced a downturn, decreasing by 1.8 percent, while Singapore and Malaysia saw declines of 0.2 and 0.3 percent, respectively.
Meanwhile, on Wall Street, stock indices initially moved upwards during early trading on Friday, but results were mixed by the end of the day. While the Nasdaq and S&P 500 maintained positive momentum, setting new record closing highs, the Dow Jones Industrial Average retracted into negative territory.
In terms of performance: the Nasdaq, characterized by its technology focus, concluded the session near its peak, rising by 159.05 points, or 0.8 percent, to close at 19,859.77. The S&P 500 increased by 15.16 points, or 0.3 percent, to finish at 6,090.27. Conversely, the Dow decreased by 123.19 points, or 0.3 percent, to settle at 44,642.52.
The major European stock markets also delivered varied outcomes. France's CAC 40 Index saw a notable rise of 1.3 percent, and Germany's DAX Index experienced a slight uptick of 0.1 percent, whereas the U.K.'s FTSE 100 Index declined by 0.5 percent.
On the commodities front, crude oil prices tumbled on Friday, impacted by concerns of oversupply. West Texas Intermediate (WTI) Crude oil futures for January decreased by $1.10, or 1.61 percent, ending at $67.20 per barrel. WTI futures experienced an overall loss of nearly 1 percent over the week.
