Asian Markets Trade Mixed
(RTTNews) - Asian stock markets are trading mixed on Friday, following the broadly negative cues from global markets overnight, as traders remain cautious and keep an eye on developments in the Middle East, where an escalating conflict has contributed to a sharp increase in the price of crude oil. They also seemed reluctant to make significant moves ahead of the highly anticipated US monthly jobs report later in the day. Asian markets ended mixed on Thursday.
The data could impact the outlook for the U.S. economy as well as expectations regarding how aggressively the Federal Reserve will lower interest rates. CME Group's FedWatch Tool is currently indicating a 65.4 percent chance the Fed will lower rates by a quarter point and a 34.6 percent chance of another half point rate cut.
The Australian stock market is significantly lower on Friday, reversing the slight gains in the previous session, following the broadly negative cues from global markets overnight. The benchmark S&P/ASX 200 is falling to near the 8,100 level, with weakness across most sectors led by mining and technology stocks. Energy stocks were the only bright spot amid spiking crude oil prices.
The benchmark S&P/ASX 200 Index is losing 59.40 points or 0.72 percent to 8,145.80, after hitting a low of 8,107.60 earlier. The broader All Ordinaries Index is down 59.20 points or 0.70 percent to 8,415.10. Australian markets ended slightly higher on Thursday.
Among major miners, BHP Group, Fortescue Metals and Rio Tinto are losing more than 2 percent each, while Mineral Resources is declining almost 2 percent.
Oil stocks are mostly higher. Woodside Energy is advancing almost 2 percent, Santos is adding more than 1 percent and Beach energy is gaining more than 2 percent, while Origin Energy is edging down 0.2 percent.
Among tech stocks, Afterpay owner Block is advancing almost 2 percent, while Zip is losing 1.5 percent, WiseTech Global is declining almost 2 percent, Xero is down more than 1 percent and Appen is slipping more than 4 percent.
Among the big four banks, Commonwealth Bank is losing more than 1 percent and Westpac is down 1.5 percent, while ANZ Banking and National Australia Bank are declining almost 1 percent each. Gold miners are mostly lower. Evolution Mining is losing more than 1 percent, Northern Star Resources is down almost 1 percent, Newmont is declining 1.5 percent and Resolute Mining is slipping more than 2 percent, while Gold Road Resources is edging up 0.3 percent.
In the currency market, the Aussie dollar is trading at $0.685 on Friday.
Extending the strong gains in the previous session, the Japanese stock market is modestly higher on Friday, despite the broadly negative cues from global markets overnight. The benchmark Nikkei 225 is moving above the 38,700 level, with gains across most sectors led by financial stocks as Prime Minister Ishiba and Bank of Japan Governor Kazuo Ueda downplayed the likelihood of an interest rate hike soon.
The benchmark Nikkei 225 Index closed the morning session at 38,732.41, up 180.35 points or 0.47 percent, after touching a high of 38,735.29 earlier. Japanese stocks closed sharply higher on Thursday.
Market heavyweight SoftBank Group is edging up 0.3 percent and Uniqlo operator Fast Retailing is gaining more than 1 percent. Among automakers, Honda is edging up 0.3 percent, while Toyota is declining almost 1 percent.
In the tech space, Advantest is gaining almost 1 percent, while Tokyo Electron is losing almost 2 percent and Screen Holdings is down almost 1 percent.
In the banking sector, Mitsubishi UFJ Financial is gaining more than 2 percent, Mizuho Financial is adding more than 1 percent and Sumitomo Mitsui Financial is up more than 1 percent.
Among major exporters, Mitsubishi Electric, Canon and Sony are edging up 0.3 to 0.5 percent each, while Panasonic is gaining almost 1 percent.
Among other major gainers, M3 is gaining almost 4 percent, while Inpex and SMC are adding more than 3 percent each. Mercari, Japan Steel Works, Sharp, ENEOS Holdings, JGC Holdings and Tokyo Electric Power are advancing almost 3 percent each.
Conversely, Kawasaki Kisen Kaisha and Nippon Yusen K.K. are plummeting more than 9 percent each, while Mitsui O.S.K. Lines is plunging almost 7 percent and Ebara is declining almost 3 percent.
In the currency market, the U.S. dollar is trading in the lower 146 yen-range on Friday.
Elsewhere in Asia, Hong Kong is up 2.2 percent, while South Korea and Singapore are up 0.7 and 0.2 percent, respectively. New Zealand, Malaysia and Indonesia are lower by between 0.2 and 0.6 percent each. Taiwan is relatively flat. China remains closed for the National Day holiday.
On Wall Street, stocks continued to experience choppy trading during Thursday's session following the lackluster performance seen during trading on Wednesday. The major averages once again spent the day bouncing back and forth across the unchanged line.
The major averages eventually finished the day modestly lower. While the Nasdaq edged down 6.65 points or less than a tenth of a percent to 17,918.48, the S&P 500 slipped 9.60 points or 0.2 percent to 5,699.94 and the narrower Dow fell 184.93 points or 0.4 percent to 42,011.59.
The major European markets also moved to the downside on the day. While the French CAC 40 Index slumped 1.3 percent, the German DAX Index slid by 0.8 percent and the U.K.'s FTSE 100 Index edged down by 0.1 percent.
Crude oil prices moved up sharply on Thursday thanks to tensions in the Middle East, with the war between Israel and Iran raising concerns about supply disruptions. West Texas Intermediate Crude oil futures for November ended up $3.61 or 5.2 percent at $73.71 a barrel.