Asian stock markets are predominantly on the rise this Friday, drawing strength from the positive trends on Wall Street overnight. Notable gains have been observed in markets such as New Zealand, Taiwan, South Korea, Australia, and Japan. Investors are motivated by the robust earnings and revenue performance of AI frontrunner, Nvidia. However, geopolitical tensions persist, influenced by the ongoing conflict between Russia and Ukraine, which continues to impact market sentiment. On Thursday, the Asian markets had largely seen declines.
In Australia, the stock market demonstrated a significant uptick on Friday, recovering from losses experienced during the prior two sessions. This correction followed the generally positive leads from Wall Street. The S&P/ASX 200 is currently trading above the 8,400 mark, with significant contributions from mining, financial, and energy sectors. Specifically, the S&P/ASX 200 Index has risen by 88.30 points, or 1.06%, reaching 8,411.30, after hitting a high of 8,411.80 earlier. Meanwhile, the broader All Ordinaries Index has increased by 86.70 points, or 1.01%, to 8,653.70. On Thursday, Australian markets had ended slightly lower.
Leading miners such as BHP Group, Fortescue Metals, and Rio Tinto have each seen nearly a 1% gain, with Mineral Resources advancing more than 4%. In the oil sector, Woodside Energy has seen a rise of over 2%, Origin Energy over 1%, while Beach Energy and Santos are both adding nearly 2% each.
In the technology sector, Block, the parent company of Afterpay, has advanced almost 3%, while Zip is up nearly 1%, and Xero has increased 0.2%. However, Appen has fallen over 2%, and WiseTech Global has seen a drop exceeding 9% after the logistics software company adjusted its annual earnings and revenue forecasts. Among the major banks, Commonwealth Bank, Westpac, and National Australia Bank each gained nearly 1%, with ANZ Banking up 0.4%.
Gold miners are generally on the rise, with Evolution Mining and Resolute Mining each up 0.5%, Newmont and Northern Star Resources are gaining over 1% each, and Gold Road Resources approaching a 1% rise.
Elsewhere, shares in Megaport declined by almost 11%, despite the company reiterating its annual earnings guidance. Conversely, a2 Milk Co. shares jumped nearly 14% following a boost in its annual revenue forecast and the announcement of upcoming dividend payments.
In economic news, Australia's manufacturing sector continued to contract in November, though at a reduced pace. Judo Bank's latest survey reported a manufacturing PMI of 49.4, improved from 47.3 in October but still below the threshold marking expansion at 50. Additionally, the services PMI decreased to 49.6 from 51.0 the previous month, while the composite PMI slipped to 49.4 in November from 50.2 in October.
In the currency market, the Australian dollar is trading at $0.652 on Friday.
Reversing declines from the previous two sessions, the Japanese stock market showed substantial gains on Friday, also following positive U.S. market cues. The Nikkei 225 index surpassed the 38,400 level, with broad sectoral gains, particularly in key index constituents and technology stocks.
The Nikkei 225 Index concluded the morning session at 38,415.32, rising by 389.15 points or 1.02%, after reaching a morning high of 38,420.63. This follows a significant drop on Thursday.
Market heavyweight SoftBank Group rose almost 1%, with Fast Retailing, the operator of Uniqlo, climbing by more than 1%. Among automakers, Honda gained nearly 2%, and Toyota added almost 1%.
In the tech sector, Advantest saw gains exceeding 1%, Screen Holdings neared a 1% rise, and Tokyo Electron advanced almost 2%.
In banking, Mitsubishi UFJ Financial gained over 1%, Sumitomo Mitsui Financial rose nearly 2%, while Mizuho Financial slipped slightly by 0.4%.
Major exporters showed modest gains, with Mitsubishi Electric and Sony each increasing between 0.1% to 0.4%, whereas Canon gained more than 1%, and Panasonic increased nearly 1%.
Significant gainers included Mitsui Chemicals and Yokogawa Electric, both surging more than 5%, while Credit Saison, Taiheiyo Cement, Obayashi, and NTT Data each advanced over 3%. ENEOS Holdings and Recruit Holdings gained nearly 3% each. Conversely, DeNA witnessed a near 5% decline.
On the economic front, Japan's consumer prices rose 2.3% year-over-year in October, as reported by the Ministry of Internal Affairs and Communications, aligning with expectations and slightly down from September's 2.5%.Inflation on a seasonally adjusted monthly basis rose by 0.4 percent, surpassing the forecasted 0.2 percent increase, following a 0.3 percent decline in the previous month. The Core Consumer Price Index (CPI), which excludes the unpredictable food prices, increased by 2.3 percent year-on-year, slightly higher than the predicted 2.2 percent but consistent with the 2.3 percent rise observed a month earlier.
According to the latest data from Jibun Bank, Japan's manufacturing sector saw a quicker contraction in November, as indicated by a manufacturing PMI of 49.0, down from October's 49.2. This score remains below the critical 50 mark that distinguishes expansion from contraction. Meanwhile, the services PMI showed improvement, rising to 50.2 from 49.7 in the prior month. The composite PMI edged up to 49.8 in November from October's 49.6.
In the currency markets, the U.S. dollar is currently trading at the lower end of the 154 yen range as of Friday.
Elsewhere in Asia, markets showed varied movements. New Zealand surged by 2.1 percent, Taiwan increased by 1.4 percent, and South Korea added 1.0 percent. Meanwhile, Singapore, Malaysia, and Indonesia posted gains ranging between 0.2 and 0.8 percent each. In contrast, China and Hong Kong saw declines of 0.6 percent and 0.3 percent, respectively.
On Wall Street, stocks exhibited significant volatility at the start of Thursday's session but trended mostly upward as the trading day progressed. The major indices concluded the day in positive territory, with the Dow Jones Industrial Average making a notable ascent.
The Dow advanced by 461.88 points, or 1.1 percent, to close at 43,870.35. The S&P 500 rose by 31.60 points, or 0.5 percent, to end at 5,948.71. Meanwhile, the Nasdaq Composite recorded a more modest increase, inching up by 6.28 points, or less than 0.1 percent, to 18,972.42.
European markets also experienced gains on the same day. France's CAC 40 Index ticked up by 0.2 percent, while both Germany's DAX Index and the U.K.'s FTSE 100 Index rose by 0.7 percent and 0.8 percent, respectively.
Crude oil prices softened on Wednesday amid concerns over weak demand and reports indicating an increase in U.S. crude inventories last week. West Texas Intermediate crude oil futures for December delivery slipped by $0.52, or 0.75 percent, settling at $68.87 a barrel.
