Asian Markets Track Wall Street Higher

(RTTNews) - Asian stock markets are trading mostly higher on Friday, following the positive cues from Wall Street overnight, with markets in China, Hong Kong and Taiwan closed for Lunar New Year. The markets are also reacting positively to some domestic economic data from Japan and Australia. The markets are gaining from heavy buying in the tech space and firm metal prices that are pushing up mining stocks. Asian markets ended mostly higher on Thursday.

The Australian stock market is trading modestly higher on Friday, extending the gains in the previous two sessions, following the broadly positive cues from Wall Street overnight. The benchmark S&P/ASX 200 is moving well above the 8,500 level after hitting all-time highs, with gains is mining and technology stocks partially offset by weakness in financial stocks.

The benchmark S&P/ASX 200 Index is gaining 32.90 points or 0.39 percent to 8,526.60, after touching an all-time high of 8,566.90 earlier. The broader All Ordinaries Index is up 39.20 points or 0.44 percent to 8,785.10. Australian stocks closed notably higher on Thursday.

Among major miners, BHP Group is adding more than 1 percent, Rio Tinto is gaining almost 1 percent and Fortescue Metals is edging up 0.4 percent, while Mineral Resources is losing almost 1 percent.

Oil stocks are mixed. Origin Energy is losing almost 6 percent and Santos is edging down 0.2 percent, while Woodside Energy and Beach energy are edging up 0.3 to 0.5 percent each.

Among tech stocks, WiseTech Global is adding almost 1 percent, Xero is advancing more than 2 percent and Zip is rising more than 1 percent. Afterpay-owner Block is in a trading halt. Appen is soaring more than 13 percent after reporting upbeat quarterly results.

Among the big four banks, Commonwealth Bank and Westpac are edging down 0.1 to 0.2 percent each, while ANZ Banking are losing almost 1 percent. National Australia Bank is edging up 0.1 percent. Gold miners are mostly higher. Evolution Mining and Northern Star Resources are advancing almost 3 percent each, while Resolute Mining is gaining more than 1 percent and Newmont is adding almost 4 percent. Gold Road Resources is flat.

In economic news, final demand producer prices in Australia were up 0.8 percent on quarter in the fourth quarter of 2024, the Australian Bureau of Statistics said on Friday. That was shy of expectations for 1.0 percent and down from 0.9 percent in the third quarter. On a yearly basis, producer prices climbed 3.7 percent - easing from 3.9 percent in the three months prior.

Meanwhile, private sector credit in Australia was up a seasonally adjusted 0.6 percent on month in December, the Reserve Bank of Australia said on Friday - unchanged from the previous month and exceeding expectations for 0.5 percent. On a yearly basis, private sector credit was up 8.6 percent.

In the currency market, the Aussie dollar is trading at $0.621 on Friday.

Adding to the gains in the previous two sessions, the Japanese market is slightly higher on Friday, following the broadly positive cues from Wall Street overnight. The Nikkei 225 is staying well above the 39,500 level, as traders react positively to some upbeat domestic economic data, with retail sales exceeded expectations and unemployment rate dropping.

The benchmark Nikkei 225 Index closed the morning session at 39,540.37, up 26.40 points or 0.07 percent, after touching a high of 39,648.34 earlier. Japanese shares ended modestly higher on Thursday.

Market heavyweight SoftBank Group is edging up 0.5 percent, while Uniqlo operator Fast Retailing is flat. Among automakers, Toyota is edging up 0.2 percent, while Honda is edging down 0.1 percent.

In the tech space, Advantest is edging up 0.1 percent and Tokyo Electron is gaining more than 2 percent, while Screen Holdings is edging down 0.3 percent.

In the banking sector, Sumitomo Mitsui Financial is edging down 0.1 percent, while Mitsubishi UFJ Financial is edging up 0.1 percent. Mizuho Financial is flat.

Among the major exporters, Sony is losing almost 1 percent and Canon is edging down 0.4 percent, while Mitsubishi Electric and Panasonic are flat.

Among other major gainers, NEC is skyrocketing almost 15 percent, Nomura Research Institute is soaring almost 7 percent, Chugai Pharmaceutical is surging more than 6 percent, Fujikura is gaining more than 5 percent and Hitachi is adding more than 4 percent, while Sumitomo Electric Industries, Furukawa Electric and Fujitsu are advancing almost 3 percent each.

Conversely, Hino Motors is plunging almost 10 percent, Oriental Land is losing more than 4 percent and Mercari is declining more than 3 percent, while Terumo and Sharp are down almost 3 percent each.

In economic news, the value of retail sales in Japan was up 3.7 percent on year in December, the Ministry of Internal Affairs and Communications said on Friday - coming in at 16.123 trillion yen. That beat forecasts for an increase of 3.4 percent and was up from 2.8 percent in November. On a seasonally adjusted monthly basis, sales fell 0.7 percent after adding 1.9 percent in the previous month. For the fourth quarter of 2024, retail sales were down 0.3 percent on quarter and up 2.6 percent on year at 44.160 trillion yen. For all of 2024, retail sales were up 2.5 percent to 167.179 trillion yen

Meanwhile, industrial production in Japan was up a seasonally adjusted 0.3 percent on month in December, the Ministry of Economy and Trade said in Friday's preliminary report. That beat forecasts for a decline of 0.1 percent following the 2.2 percent contraction in November. On a yearly basis, production sank 1.1 percent. Upon the release of the data, the METI maintained its assessment of industrial production, saying that it continues to fluctuate indecisively. According to the METI's forecast of industrial production, output is expected to rise 1.0 percent in January and 1.2 percent in February.

The unemployment rate in Japan came in at a seasonally adjusted 2.4 percent in December, the Ministry of Internal Affairs and Communications said on Friday. That was beneath expectations for 2.5 percent, which would have been unchanged from November. The jobs-to-applicant ratio was 1.25, in line with forecasts and unchanged from the previous month. The participation rate came in at 63.4 percent, shy of expectations for 63.5 percent - which would have been unchanged from the November reading.

In the currency market, the U.S. dollar is trading in the lower 154 yen-range on Friday.

Elsewhere in Asia, Singapore and Indonesia are up 1.9 and 1.0 percent, respectively, while New Zealand and Malaysia up 0.3 and 0.1 percent, respectively. South Korea is down 1.2 percent. China, Hong Kong and Taiwan remain closed for the Lunar New Year holidays.

On Wall Street, stocks saw considerable volatility over the course of the trading session on Thursday, with the major averages showing wild swings back and forth across the unchanged line before eventually closing in positive territory.

The Dow climbed 168.61 points or 0.4 percent to 44,882.13, ending the day within striking distance of the record closing high set in early December. The S&P 500 also advanced 31.86 points or 0.5 percent to 6,071.17, while the Nasdaq rose 49.43 points or 0.3 percent to 19,681.75.

The major European markets also moved to the upside on the day. While the U.K.'s FTSE 100 Index jumped by 1.0 percent, the French CAC 40 Index advanced by 0.9 percent and the German DAX Index increased by 0.4 percent.

Crude oil prices settled marginally higher on Thursday on a likely drop in supplies amid a potential tariff on Canadian and Mexican goods, while a weaker dollar also provided support. West Texas Intermediate crude oil futures for March rose $0.11 or 0.15 percent at $72.73 a barrel.