Asian stock markets are demonstrating a mixed performance on Monday, influenced by the positive indicators from global markets last Friday. The optimism partly stems from the increasing likelihood of a US Federal Reserve interest rate cut as early as September, following June data that revealed an unexpected decline in US consumer price inflation. Traders are also seizing opportunities to buy stocks at lower prices after the recent market slump. Notably, Asian markets had a mixed closure on Friday.
In Australia, the stock market is experiencing significant gains on Monday, building upon the advances made over the past two sessions, supported by the encouraging signals from global markets on Friday. The S&P/ASX 200 index has exceeded the 8,000 mark, reaching an all-time high, with significant contributions from the financial and technology sectors. The S&P/ASX 200 Index is up by 68.60 points, or 0.86%, at 8,027.90, reaching an all-time high of 8,037.30 earlier. Meanwhile, the broader All Ordinaries Index has increased by 65.90 points, or 0.80%, to 8,272.00. Australian stocks also marked a significant rise on Friday.
In the mining sector, Rio Tinto and Mineral Resources are inching up 0.3 to 0.5%, BHP Group is climbing nearly 1%, and Fortescue Metals is advancing over 1%. The oil sector also shows strength, with Beach Energy and Santos gaining nearly 1% each, Woodside Energy up almost 2%, and Origin Energy adding more than 1%.
Tech stocks are performing well; Appen and WiseTech Global are increasing by nearly 1% each, Block (Afterpay's parent) is advancing 3.5%, and Xero is up more than 1%, while Zip is experiencing a loss of more than 5%.
Gold miners are largely down; Newmont, Gold Road Resources, and Northern Star Resources are edging up by 0.3 to 0.4%, while Evolution Mining is edging down by 0.4% and Resolute Mining is gaining nearly 2%.
The major banks are also seeing gains, with Commonwealth Bank, ANZ Banking, and Westpac rising almost 1% each, while National Australia Bank advances over 1%.
In other news, shares in Lifestyle Communities are plunging by nearly 10%, following a report from the Australian Broadcasting Corp. highlighting residents' accusations against the land lease company of unethical conduct. Conversely, Aussie Broadband's shares are down by almost 17% after the telco reduced its earnings forecast for FY 2025.
In the currency market, the Australian dollar is trading at $0.677 on Monday.
The Japanese stock market is closed on Monday for the Marine Day holiday. Japanese shares ended sharply lower on Friday. In currency trading, the U.S. dollar is ranging in the lower 158 yen on Monday.
Elsewhere in Asia, markets in China, New Zealand, Singapore, and Malaysia show slight gains between 0.1 and 0.2%, while markets in Hong Kong, South Korea, Taiwan, and Indonesia register declines between 0.2 and 0.6%.
On Wall Street, stocks rebounded on Friday after a substantial downturn in the previous session. The Dow Jones and the S&P 500 reached new record intraday highs during the day. Despite giving back some gains towards the close, the indices remained firmly positive. The Dow Jones rose by 247.15 points, or 0.6%, to 40,000.90, the Nasdaq climbed 115.04 points, or 0.6%, to 18,398.45, and the S&P 500 increased by 30.81 points, or 0.6%, to 5,615.35.
European markets also trended upwards. The French CAC 40 Index surged by 1.3%, the German DAX Index rose by 1.1%, and the UK's FTSE 100 Index increased by 0.4%.
Crude oil prices settled lower on Friday, pressured by data showing a larger-than-expected rise in U.S. producer prices in June. West Texas Intermediate Crude oil futures for August fell by $0.41, closing at $82.21 per barrel.
