Asian stock markets have predominantly taken a hit, following less than favorable influences from Wall Street. Traders are playing it safe, awaiting the testimony of Jerome Powell, the US Federal Reserve Chair, before the House Financial Services Committee and the Senate Banking Committee. His statements will offer insights into the probable trajectory of interest rates. Meanwhile, the upcoming U.S. employment report for February may also impact the interest rates scenario. In the recent trading session, Asian markets ended on a mixed note.
The Australian stock market, following the negative cue from Wall Street, displayed minor losses, as the fluctuations in the technology and mining stocks kept the market in a state of flux. The S&P/ASX 200 benchmark retreated slightly from all-time highs but stayed over the 7,700 level.
Major mining companies, Fortescue Metals and Rio Tinto saw gains of over 2%, and BHP Group increased by more than 1%. However, Mineral Resources faced a decline of almost 2%. The tech sector, led by WiseTech Global, Zip, Afterpay owner Block, and Xero also experienced losses while Appen noted a gain of nearly 3%.
The banking sector remained relatively stable with the Commonwealth Bank and ANZ Banking slightly down by 0.1% while Westpac edged up by the same percentage. National Australia Bank remained stagnant. The energy sector pronounced mixed results. Origin Energy gained close to 1%, Beach energy lost nearly 1%, and Woodside Energy dipped by 0.4%.
Healius shares jumped nearly 15%, following the announcement of Paul Anderson’s takeover as Chief Executive, replacing Maxine Jaquet. Australia's services sector noted an expansion in February, recording a PMI score of 53.1, an increase from the previous 49.1.
Australia logged a seasonally adjusted current account surplus of A$11.8 billion in the fourth quarter of 2023, surpassing the expected surplus of A$4.8 billion. The capital and financial account deficit stood at A$9.730 billion. The Aussie dollar was trading at $0.650.
The Japanese market also suffered losses with the Nikkei 225 benchmark falling below the 40,000 mark due to losses in-exporters and technology stocks. However, these were partially offset by gains in financial stocks. Market heavyweight SoftBank Group and Uniqlo operator Fast Retailing saw minor increments. Honda experienced a loss of 1%, while, Toyota edged up by 0.3%. Meanwhile, Advantest in the tech arena noted a 5% loss, and Screen Holdings declined by over 2%. On the brighter side, Sumitomo Mitsui Financial noted gains of almost 2%, with Mizuho Financial and Mitsubishi UFJ Financial adding 1.5% each.
On the other hand, Obayashi UBE's stock recorded a substantial increase of nearly 18 percent. Both Kajima and Taisei also saw significant rises, soaring 7.5 percent and surging over 6 percent, respectively. Shimizu's stock appreciated by 5.5 percent, Fujikura added close to 5 percent, and Nitori Holdings advanced nearly 3 percent.
In economic developments, Japan's services sector continued its expansion in February, although at a slower rate, as reflected in the latest survey data from Jibun Bank. Despite a drop in the services PMI score, from 53.1 in January to 52.9 in February, the score remained above the pivotal 50-mark, distinguishing growth from contraction.
In the foreign exchange market, the US dollar traded in the lower 150 yen-range this Tuesday.
Elsewhere in Asia, Hong Kong and Malaysia's stock markets depreciated by 2.3 and 1.1 percent respectively. Stock markets in New Zealand, Singapore, South Korea, and Indonesia also recorded slight drops between 0.1 and 0.6 percent. Meanwhile, stock markets in China and Taiwan experienced a mild upturn, rising by 0.2 and 0.5 percent.
On Wall Street, despite a brief positive turn in the final trading hour, stocks struggled to maintain an upward trajectory and ended with a slight decrease on Monday. The Dow Jones closed down by 97.55 points or 0.25 percent at 38,989.83, the S&P 500 experienced a loss of 6.13 points or 0.12 percent settling at 5,130.95, and the Nasdaq ended lower by 67.43 points or 0.41 percent at 16,207.51.
In Europe, most major stock markets ended in negative territory. Although the UK's FTSE 100 Index and the German DAX Index dropped by 0.55 percent and drifted down 0.11 percent respectively, France's CAC 40 Index managed to gain 0.28 percent.
Crude oil prices fell on Monday amid concerns about energy demand outlook following OPEC's decision to maintain its output cuts till the end of the second quarter. West Texas Intermediate Crude oil futures for April ended lower by $1.23 or 1.5 percent at $78.74 a barrel.
