Asian stock markets are presenting a mixed trading outlook today, following the generally positive global market trends observed on Friday. This change comes after easing concerns about the US Federal Reserve (Fed) interest rates, attributed to a slowdown in US employment growth in April and an unexpected contraction in US service sector activity the same month. On Friday, most Asian markets closed on a higher note.
It's believed that the less than projected data combined with Fed Chair Jerome Powell's indications of no forthcoming rate hikes may prompt the Fed to lower interest rates later this year.
Today, the Australian stock market is performing notably well, building on gains made in the last two sessions. The S&P/ASX 200 benchmark index has climbed well above the 7,600.00 level, responding to the predominantly positive global market trends on Friday. Notable advancements have been seen across most sectors, particularly technology and financial stocks. However, a dip in the performance of gold miners partially offsets these gains.
The S&P/ASX 200 Index has risen by 45.10 points or 0.59 percent to 7,674.10, peaking at 7,679.30 earlier today, while the broader All Ordinaries Index stands at an upswing of 46.10 points or 0.58 percent to 7,943.60.
Major miners like Rio Tinto and Fortescue Metals have gained over 1 percent each, while BHP Group and Mineral Resources have risen by 0.5 and 2 percent, respectively. Most oil stocks are also gaining. In the technology sector, companies such as WiseTech Global and Zip have increased roughly 2 percent each, while Appen and Xero have grown by almost 1 and over 1 percent, respectively. Conversely, gold miners such as Gold Road Resources, Newmont, Northern Star Resources, and Evolution Mining are suffering losses.
Major banks, including Commonwealth Bank and ANZ Banking, are gaining close to 1 percent, while National Australia Bank and Westpac have seen gains of over 1 percent. The Australian dollar stands at $0.662 today.
Meanwhile, the Japanese stock market remains closed for Children's Day, following a slight dip on the last trading day, Thursday. The US dollar trades in the higher 153 yen-range currently.
Elsewhere in Asia, Taiwan has seen a 1.4 percent increase, while China, Singapore, and Malaysia have made gains ranging from 0.2 to 0.9 percent. New Zealand, Hong Kong, and Indonesia experienced a fall between 0.2 and 0.9 percent, and South Korea is closed for Children's Day.
On Wall Street, stocks made significant upward strides during Friday's trading, continuing Thursday's rally. Major European markets also saw increases, with the German DAX Index advancing by 0.6 percent, and the UK's FTSE 100 Index and the French CAC 40 Index both rising by 0.5 percent.
However, crude oil prices fell, experiencing the most considerable weekly decline in approximately three months due to concerns about the global oil demand outlook. West Texas Intermediate Crude oil futures for June ended down by $0.84 or 1.06 percent at $78.11 a barrel.
