Markets

Asian Markets Show Mixed Trend

(RTTNews) - Asian stock markets are mixed on Wednesday, following the broadly positive cues overnight from Wall Street, as traders reacted positively to some upbeat earnings news from top U.S. firms and rising crude oil prices. Meanwhile, concerns about slowing growth amid supply chain bottlenecks are weighing on market sentiment. Asian Markets closed mostly higher on Tuesday.

Meanwhile, the International Monetary Fund on Tuesday slashed its 2021 economic growth outlook for Asia and warned that supply chain disruptions, inflation pressures and a looming fresh wave of COVID-19 infections pose downside risks. However, it raised the economic growth outlook for 2022.

The Australian stock market is significantly higher on Wednesday, recouping the slight loss in the previous session, with the benchmark S&P/ASX 200 above the 7,400 level, following the broadly positive cues overnight from Wall Street, with technology, financial and mining stocks providing the support.

Meanwhile, the domestic coronavirus situation continues to be a concern, particularly in Victoria, which is hindering economic activity. Victoria reported 1,841 new cases of COVID-19 and twelve deaths on Tuesday, with 22,598 total active cases across Victoria. NSW recorded 283 new local cases and seven deaths.

The benchmark S&P/ASX 200 Index is gaining 55.20 points or 0.75 percent to 7,430.10, after touching a high of 7,449.50 earlier. The broader All Ordinaries Index is up 55.10 points or 0.72 percent to 7,745.30. Australian stocks ended slightly lower on Tuesday.

Among major miners, BHP Group and OZ Minerals are gaining more than 2 percent each, while Fortescue Metals and Rio Tinto are adding almost 2 percent each. Mineral Resources is edging down 0.1 percent.

Oz Minerals has lifted its gold production guidance in its quarterly report.

BHP has raised its offer to buy Canadian nickel miner Noront Resources, trumping the latest bid from Australian billionaire Andrew "Twiggy" Forrest.

Oil stocks are mixed. Woodside Petroleum and Origin Energy are edging up 0.3 percent each, while Beach energy is losing more than 4 percent. Oil Search and Santos are edging down 0.3 percent.

In the tech space, WiseTech Global is gaining more than 2 percent and Afterpay is rising almost 2 percent, while Appen and Xero are adding more than 1 percent each. Among the big four banks, Westpac is gaining more than 1 percent and ANZ Banking is edging up 0.3 percent, while Commonwealth Bank and National Australia Bank are adding almost 1 percent each. Among gold miners, Evolution Mining, Newcrest Mining and Northern Star Resources are gaining almost 2 percent each, while Resolute Mining and Gold Road Resources are edging up 0.4 percent each. Shares in Kogan are soaring almost 9 percent after the online retailer told investors that it has overcome the stock issues which plagued it earlier this year after the business overestimated consumer demand.

In the currency market, the Aussie dollar is trading at $0.748 on Wednesday.

The Japanese stock market is marginally higher on Wednesday, extending the gains in the previous session, with the benchmark Nikkei index just below the 29,300 level, following the broadly positive cues overnight from Wall Street, with gains across most sectors, particularly financial and technology stocks.

The benchmark Nikkei 225 Index closed the morning session at 29,261.51, up 45.99 points or 0.16 percent, after touching a high of 29,489.11 earlier. Japanese stocks closed notably higher on Tuesday.

Market heavyweight SoftBank Group is gaining almost 2 percent and Uniqlo operator Fast Retailing is adding almost 1 percent. Among automakers, Honda is gaining almost 1 percent and Toyota is edging up 0.5 percent.

In the tech space, Screen Holdings is gaining more than 2 percent, Tokyo Electron is adding almost 1 percent and Advantest is up more than 1 percent.

In the banking sector, Sumitomo Mitsui Financial is gaining more than 1 percent, while Mizuho Financial and Mitsubishi UFJ Financial are adding more than 2 percent each.

Among the major exporters, Panasonic and Sony are gaining almost 1 percent each, while Mitsubishi Electric is adding more than 3 percent and Canon is rising almost 3 percent.

Among the other major gainers, Hitachi Construction Machinery is gaining more than 4 percent, while TDK and Mitsubishi Motors are adding more than 3 percent each. NSK, Nomura Holdings, Concordia Financial Group, Mitsubishi Motors, Tokyu, Keio, Keisei Electric Railway, Hitachi and Dai-ichi Life are all up almost 3 percent each. Conversely, Kawasaki Heavy Industries is losing more than 6 percent and Nintendo is down more than 3 percent, while Hitachi Zosen and Kawasaki Kisen Kaisha are declining more than 2 percent each. In economic news, Japan posted a merchandise trade deficit of 622.8 billion yen in September, the Ministry of Finance said on Wednesday. That missed forecasts for a shortfall of 519.2 billion yen following the downwardly revised 637.2 billion yen deficit in August (originally -635.4 billion yen). Exports climbed 13.0 percent on year, exceeding estimate for an increase of 11.0 percent following the 26.2 percent gain in the previous month. Imports were up an annual 38.6 percent versus expectations for a gain of 34.4 percent and slowing from 44.7 percent a month earlier.

In the currency market, the U.S. dollar is trading in the mid-114 yen-range on Wednesday.

Elsewhere in Asia, Hong Kong is gaining 1.1 percent, while New Zealand, Singapore and Taiwan are higher by between 0.1 and 0.5 percent each. China, South Korea and Malaysia are lower by between 0.1 and 0.2 percent each. Indonesia is closed on account of Mawlid holiday.

On Wall Street, stocks closed on a firm note on Tuesday and the major averages posted their best intraday levels in a month, as investors reacted positively to some upbeat earnings news from top name companies. Worries about slowing growth amid supply chain bottlenecks did weigh a bit and limit market's gains.

The major averages all ended with solid gains. The Dow ended higher by 198.70 points or 0.56 percent at 35,457.31. The S&P 500 surged up 33.17 points or 0.74 percent to settle at 4,519.63, while the tech-laden Nasdaq advanced 107.28 points or 0.71 percent to 15,129.09.

Meanwhile, the major European markets turned in a mixed performance on the day. While the U.K.'s FTSE 100 ended 0.19 percent up and Germany's DAX advanced 0.27 percent, France's CAC 40 edged down 0.05 percent. Crude oil prices climbed higher on Tuesday amid rising demand for fuel oil and diesel due to a severe energy crisis in China and several parts across Europe. West Texas Intermediate crude oil futures for November ended higher by $0.52 or 0.6 percent at $82.96 a barrel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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