**Asian Stock Markets Decline Amidst Anticipation of US Fed Decisions**
Asian stock markets are trading predominantly lower on Monday, influenced by the broadly negative cues from global markets on Friday. Investors reacted to data indicating a stronger-than-expected job growth in the US for May, paired with an unexpected increase in the unemployment rate. These figures diminished hopes for a rate cut by the US Federal Reserve in September. Asian markets had closed mixed on Friday.
Traders are now cautiously awaiting the Fed’s latest monetary policy decision later in the week. While the central bank is widely expected to maintain current interest rates, significant attention will be given to a forthcoming report on consumer price inflation.
**Japanese Market Performance**
Despite the negative global market trends on Friday, the Japanese stock market is trading notably higher on Monday, reversing slight losses from the previous session. The benchmark index, S&P/ASX 200, is approaching the 38,900 level, driven by gains across most sectors led by index heavyweights and financial stocks. This bullish sentiment follows Japan’s annualized GDP decline which was less severe than anticipated for Q1.
- **Nikkei 225 Index:** Ended the morning session at 38,872.19, up by 188.26 points or 0.49%.
**Key Performers in Japan**
- **SoftBank Group:** Increased by 1.5%.
- **Fast Retailing (Uniqlo):** Up by nearly 1%.
- **Automakers:** Honda and Toyota both advancing by nearly 2%.
- **Tech sector:** Screen Holdings gaining almost 1%, Advantest edging up 0.3%, while Tokyo Electron dipped by 0.2%.
- **Banking sector:** Sumitomo Mitsui Financial gaining 1.5%, Mizuho Financial and Mitsubishi UFJ Financial both increased by more than 1% each.
- **Exporters:** Sony slightly down by 0.4%, Mitsubishi Electric up by nearly 1%, Panasonic gaining nearly 2%, and Canon remained flat.
Other significant gainers include Socionext and Sharp, both increasing by more than 4%, while Hitachi, Sumitomo Pharma, and ENEOS posted gains of over 3%. Dai-ichi Life, Sompo Holdings, Fujitsu, Sumitomo Electric Industries, and Tokyo Gas each rose by nearly 3%. Conversely, Kao lost almost 5%, and M3 declined nearly 3%.
**Economic Indicators**
Japan’s GDP contracted by 0.5% in Q1 2024 on a seasonally adjusted basis, aligning with forecasts and unchanged from last month's advance estimate. Annually, GDP was revised to -1.8% from an estimated -2.0%.
**Currency Market**
- **USD/JPY:** The US dollar is trading in the higher 156 yen-range.
- **AUD/USD:** The Australian dollar is trading at $0.658.
**Other Asian Markets**
- **Australia:** Stock market closed for King’s Birthday.
- **New Zealand, South Korea, Singapore, and Indonesia:** Trading lower between 0.1% and 0.7%.
- **Malaysia:** Market relatively flat.
- **Taiwan, China, and Hong Kong:** Markets closed for the Dragon Boat Festival.
**Global Market Overview**
**US Markets**
Wall Street exhibited a lack of direction on Friday, extending the previous session’s lackluster performance. Major averages fluctuated around the unchanged line before closing modestly lower.
- **S&P 500:** Down by 5.97 points or 0.1% to 5,346.99.
- **Dow Jones:** Declined by 87.18 points or 0.2% to 38,798.99.
- **Nasdaq:** Fell by 39.99 points or 0.2% to 17,133.13.
**European Markets**
Major European markets moved downward on Friday:
- **DAX Index (Germany):** Fell by 0.5%.
- **CAC 40 Index (France):** Decreased by 0.5%.
- **FTSE 100 Index (UK):** Dropped by 0.5%.
**Commodities Market**
Crude oil prices remained flat on Friday amidst concerns that the Federal Reserve might maintain higher interest rates for a longer period following the robust U.S. non-farm payroll report for May.
- **WTI Crude (July futures):** Ended at $75.53 per barrel, down by $0.02, marking a 2% decline over the week.
