Asian stock markets are mostly trending downward on Wednesday, influenced by mixed signals from Wall Street overnight. Investors are showing caution ahead of the upcoming U.S. presidential election and the Federal Reserve's monetary policy decision. Additionally, geopolitical tensions in the Middle East are exerting downward pressure on the markets. Most Asian markets had closed in positive territory on Tuesday.
Traders are also anticipating key U.S. economic data releases and earnings reports from major tech companies to guide their trading decisions.
In Australia, stocks are marginally lower on Wednesday, surrendering some of the gains made over the previous three sessions. The S&P/ASX 200 index has dipped below the 8,200 mark, impacted by weaknesses in the energy and financial sectors, despite some strength in the iron ore mining sector. The S&P/ASX 200 is down 64.30 points or 0.78 percent to 8,184.90, having hit a low of 8,182.20 earlier. Similarly, the All Ordinaries index decreased by 61.80 points or 0.73 percent to 8,444.10, following a modestly higher close on Tuesday.
Within the major mining segment, Rio Tinto and Mineral Resources are each up nearly 1 percent, Fortescue Metals is gaining over 1 percent, and BHP Group is up by 1.5 percent.
Oil stocks are mostly in decline, with Origin Energy and Woodside Energy dropping by 0.2 to 0.3 percent, Beach Energy down by over 1 percent, and Santos declining almost 1 percent. In the tech sector, Block, which owns Afterpay, is down by more than 1 percent, Zip decreasing by almost 1 percent, and Xero edging lower by 0.1 percent. Meanwhile, Appen has surged almost 6 percent and WiseTech Global is slightly up by 0.4 percent.
Among the major banks, Commonwealth Bank, National Australia Bank, and ANZ Banking are each losing nearly 1 percent, while Westpac is slightly down by 0.3 percent.
In the gold mining segment, Evolution Mining and Northern Star Resources are each up by more than 1 percent, with Gold Road Resources gaining 0.4 percent. However, Newmont is down by almost 2 percent and Resolute Mining is down by nearly 1 percent.
On the economic front, the Australian Bureau of Statistics reported that consumer prices in Australia increased by a seasonally adjusted 0.2 percent in the third quarter of 2024. This was below the anticipated 0.3 percent rise and a decrease from the previous quarter's 1.0 percent increase.
Year-on-year, inflation rose by 2.8 percent, exceeding forecasted growth of 2.3 percent but lower than the second quarter's 3.8 percent. The trimmed mean saw a quarterly rise of 0.8 percent and an annual rise of 3.5 percent, while the weighted mean increased by 0.9 percent quarterly and 3.8 percent annually.
On the currency front, the Australian dollar is trading at $0.656 on Wednesday.
The Japanese stock market is notably higher on Wednesday, extending gains from the past two sessions, despite mixed cues from Wall Street overnight. The Nikkei 225 index is climbing, approaching the 39,300 level, buoyed by gains across various sectors led by index heavyweights, financial, and technology stocks.
The Nikkei 225 closed the morning session at the day's peak of 39,390.49, up by 486.81 points or 1.25 percent, maintaining the momentum from Tuesday’s strong close.
SoftBank Group, a market heavyweight, is up by more than 2 percent, while Fast Retailing, the operator of Uniqlo, remains flat. Among automakers, Honda is slightly down by 0.2 percent, while Toyota sees an increase of nearly 1 percent.
In the technology sector, Advantest is up by nearly 3 percent, Tokyo Electron gaining about 1 percent, and Screen Holdings rising over 2 percent.
In banking, Sumitomo Mitsui Financial and Mitsubishi UFJ Financial are each up by 0.5 percent, while Mizuho Financial remains flat.
Among major exporters, Sony is increasing by almost 2 percent and Panasonic is up by 0.2 percent, with Mitsubishi Electric and Canon each climbing by nearly 1 percent.
Notable gainers include Disco, jumping by nearly 11 percent, and Fujikura, surging by more than 5 percent, with Lasertech, Keyence, and Tokyo Electric Power all rising over 4 percent each. Furukawa Electric, Kansai Electric Power, Nikon, Renesas Electronics, and SMC are each seeing gains of more than 3 percent, with Chubu Electric Power, Hoya, Toppan Holdings, and Daiichi Sankyo all up by nearly 3 percent.
In contrast, Hino Motors is plunging more than 11 percent.
On the currency market, the U.S. dollar is trading in the lower 153 yen range as of Wednesday.Across Asia, markets showed a downward trend, with New Zealand, China, Hong Kong, Singapore, South Korea, Malaysia, and Indonesia each experiencing declines ranging from 0.1% to 1.0%. In contrast, Taiwan diverged from this pattern with an increase of 0.3%.
On Wall Street, stocks saw a rise on Monday, although the following day brought a return to the mixed performance characterizing the end of the previous week. Notably, the tech-focused Nasdaq made significant gains, achieving a new record closing high. Meanwhile, the Dow experienced a decline for the sixth time in seven sessions.
Specifically, the Nasdaq advanced by 145.56 points, or 0.8%, reaching 18,712.75 and marking a four-day winning streak. The S&P 500 saw a modest rise of 9.40 points, or 0.2%, closing at 5,832.92. Conversely, the Dow Jones Industrial Average fell by 154.52 points, or 0.4%, to 42,233.05.
In Europe, all major markets closed lower. The UK's FTSE 100 Index dropped by 0.8%, France's CAC 40 Index declined by 0.6%, and Germany's DAX Index decreased by 0.3%.
Additionally, crude oil prices continued to fall on Tuesday, driven by concerns over an oversupply in the near term relative to demand. West Texas Intermediate Crude for December delivery settled at $67.21 per barrel, down $0.17 or approximately 0.25%.
