Asian stock markets exhibited mixed performances on Friday, reflecting the largely unfavorable global market trends observed the previous evening. Investors proceeded with caution, acutely aware of the burgeoning tensions in the Middle East which have led to a significant surge in crude oil prices. Furthermore, market participants hesitated to initiate major transactions pending the release of the U.S. monthly employment report anticipated later in the day. Thursday's trading concluded with varied outcomes across Asian markets.
The impending data release is poised to influence forecasts for the U.S. economy and shape expectations regarding the Federal Reserve's approach to adjusting interest rates. According to CME Group's FedWatch Tool, there is a 65.4% probability that the Fed will implement a quarter-point rate cut, while a 34.6% likelihood exists for a half-point reduction.
In Australia, the stock market experienced a notable downturn on Friday, reversing prior session's modest gains, impacted by the adverse global market signals. The benchmark S&P/ASX 200 Index has dropped closer to the 8,100 mark, with declines observed in most sectors, particularly among mining and technology stocks. Energy stocks, conversely, stood out as the lone strength amidst rising oil prices.
The S&P/ASX 200 Index has decreased by 59.40 points, or 0.72%, landing at 8,145.80, after previously touching a low of 8,107.60. Meanwhile, the All Ordinaries Index registered a fall of 59.20 points, or 0.70%, to 8,415.10. Thursday concluded with slight gains for the Australian markets.
Key mining players such as BHP Group, Fortescue Metals, and Rio Tinto have each suffered declines exceeding 2%, while Mineral Resources dropped nearly 2%.
In contrast, the majority of oil stocks showed upward movement. Woodside Energy increased by nearly 2%, Santos by over 1%, and Beach Energy by more than 2%, whereas Origin Energy slightly decreased by 0.2%.
Technology stocks presented mixed outcomes, with Block, the owner of Afterpay, rising nearly 2%. In contrast, Zip fell by 1.5%, WiseTech Global by nearly 2%, Xero by over 1%, and Appen by more than 4%.
Among the major banks, Commonwealth Bank fell by over 1%, Westpac by 1.5%, and both ANZ Banking and National Australia Bank declined nearly 1% each. In the gold mining sector, the majority reported losses: Evolution Mining fell by more than 1%, Northern Star Resources decreased by almost 1%, Newmont decreased by 1.5%, and Resolute Mining dropped over 2%, while Gold Road Resources edged up by 0.3%.
In currency markets, the Australian dollar was trading at $0.685 on Friday.
Despite the generally negative global market trends, the Japanese stock market saw modest gains on Friday, supported by favorable sentiment from the previous session's strong performance. The Nikkei 225 Index climbed above the 38,700 level, bolstered across most sectors, particularly financial stocks, as the potential for an imminent interest rate hike was downplayed by Prime Minister Ishiba and Bank of Japan Governor Kazuo Ueda.
By the close of the morning session, the Nikkei 225 Index increased by 180.35 points, or 0.47%, to reach 38,732.41, having peaked earlier at 38,735.29. Thursday witnessed Japanese stocks closing considerably higher.
Significant market figures like SoftBank Group marginally improved by 0.3%, and Fast Retailing, operator of Uniqlo, rose by over 1%. Among automakers, Honda slightly gained 0.3%, whereas Toyota fell by nearly 1%.
In the tech sector, Advantest rose by almost 1%, while Tokyo Electron decreased nearly 2%, and Screen Holdings fell by nearly 1%.
In banking, notable gains were seen with Mitsubishi UFJ Financial rising by more than 2%, Mizuho Financial by over 1%, and Sumitomo Mitsui Financial by over 1%.
Leading exporters Mitsubishi Electric, Canon, and Sony inched up between 0.3% and 0.5%, with Panasonic gaining nearly 1%.
Among significant gainers, M3 gained almost 4%, while Inpex and SMC each rose over 3%. Companies such as Mercari, Japan Steel Works, Sharp, ENEOS Holdings, JGC Holdings, and Tokyo Electric Power advanced by nearly 3% each.
Conversely, stocks like Kawasaki Kisen Kaisha and Nippon Yusen K.K. experienced downturns, plummeting by over 9% each, Mitsui O.S.K. Lines dropped nearly 7%, and Ebara declined by nearly 3%.
In currency markets, the U.S. dollar traded in the lower 146 yen range on Friday.
Elsewhere across Asia, Hong Kong advanced by 2.2%, South Korea grew by 0.7%, and Singapore increased by 0.2%. Meanwhile, New Zealand, Malaysia, and Indonesia saw declines between 0.2% and 0.6%, albeit Taiwan remained relatively stable. Markets in China continued their closure due to the National Day holiday.On Wall Street, stocks exhibited a volatile trading pattern on Thursday, echoing the subdued activity observed the previous day. The primary indices fluctuated around the unchanged line throughout the session.
Ultimately, the key indices closed the day with slight losses. The Nasdaq decreased by 6.65 points, representing less than 0.1%, settling at 17,918.48. Meanwhile, the S&P 500 dropped by 9.60 points, or 0.2%, ending at 5,699.94, and the Dow declined by 184.93 points, or 0.4%, closing at 42,011.59.
European markets mirrored this downward trend. The French CAC 40 Index fell by 1.3%, the German DAX Index declined by 0.8%, and the UK's FTSE 100 Index saw a minor dip of 0.1%.
In commodity markets, crude oil prices surged on Thursday, driven by escalating tensions in the Middle East—specifically, the conflict between Israel and Iran, which has sparked fears of potential supply disruptions. West Texas Intermediate Crude oil futures for November saw a significant rise, closing up $3.61, or 5.2%, at $73.71 per barrel.
