Asian stock markets are predominantly dipping today. This fall follows largely negative hints from Wall Street as traders cautiously await key economic data, including a US consumer price inflation report, which is a favored metric by the US Federal Reserve.
The forthcoming inflation data could dramatically sway the outlook for interest rates. Federal officials have stated they need more substantial assurance that inflation is decelerating before instigating rate cuts.
Following slight gains in the previous session, the Australian stock market contracted modestly. The benchmark S&P/ASX 200 index remains above the 7,600 level. This dip results mainly from weaknesses spanning most sectors, primarily led by technology and mining stocks.
Notable decreases came from major miners including Fortescue Metals, Rio Tinto, BHP Group and Mineral Resources. Whereas, oil stocks and tech shares experienced a mixed pattern. Santos and Woodside Energy saw a marginal rise, while Origin Energy and Beach Energy suffered over 1% losses each.
However, some big four banks such as Commonwealth Bank, National Australia Bank, and ANZ Banking saw slight increases, contrasting with Westpac's minor downturn. In other news, Alumina shares plummeted over 7% with the takeover target switching to a net loss for the year and withholding its final dividend.
Japanese markets also modestly fell today following overnight signals from Wall Street, coupled with the latest domestic data showing a drop in inflation, the lowest since March 2022. This drop in stock market followed a recent revelation that Japan's economy had slipped into a technical recession in the fourth quarter.
Major contributors to the market included SoftBank Group and Fast Retailing, with gains exceeding 2%. The banking sector also saw positive performance, with Sumitomo Mitsui Financial and Mizuho Financial gaining over 2% each.
However, on a brighter note, the Australian dollar is trading at $0.653, and shares in Reece Group rose above 12% following a robust profit report for the first half, and the declaration of an interim dividend. Furthermore, Japan's January consumer prices rose 2.2% year-on-year, while core consumer prices, excluding unstable food costs, rose 2% for the same period. This growth exceeded expectations and slightly fell from the 2.3% recorded the previous month.
Among the significant gainers, Hitachi Zosen saw a rise of about 6 percent while both Fukuoka Financial and Otsuka Holdings achieved over a 4 percent increase. Other companies like Osaka Gas, Kobe Steel, JFE Holdings, Daiwa Securities, Kawasaki Heavy Industries, Tokyo Gas, and Nippon Steel noticed over a 3 percent rise each. Nomura Holdings, Mitsubishi Heavy Industries, Concordia Financial, Shizuoka Financial, and IHI also experienced a surge of around 3 percent each.
In contrast, Rakuten Group observed a drop of more than 3 percent, while both Sumitomo Realty & Development and Mercari experienced a near 3 percent decline.
The U.S. dollar was observed to be trading in the mid-150 yen-range on Tuesday. Meanwhile, in other parts of Asia, New Zealand, Hong Kong, Singapore, South Korea, Indonesia, and Taiwan saw a decline between 0.2 and 1.0 percent each, whereas China and Malaysia both saw a 0.3 percent increase.
Wall street stocks concluded Monday on a negative note. The major averages slipped into the red after a modestly positive start, mainly due to investors choosing to be cautious ahead of some pivotal economic data which included reports on consumption expenditure.
In terms of major averages, the Dow ended lower by 62.30 points or 0.16 percent at 39,069.23. The S&P 500 concluded with a 19.27 points loss or 0.38 percent at 5,069.53. The Nasdaq, despite experiencing a tumultuous session, ended down 20.57 points or 0.13 percent at 15,976.25.
Major European markets also saw diminish on the day. The U.K.'s FTSE 100 slipped down 0.29 percent, France's CAC 40 fell by 0.46 percent, while Germany's DAX slightly rose by 0.02 percent.
The Crude oil prices recovered from early losses and climbed higher on Monday, as continued aggression by Houthi militants on the Red Sea route led to concerns about supply disruption. West Texas Intemediate Crude oil futures for April ended higher by $1.09 or 1.4 percent at $77.58 a barrel.
