Asian Markets Trading Mixed

(RTTNews) - Asian stock markets are trading mixed on Tuesday, following the broadly positive cues from global markets overnight, on renewed optimism over the outlook for interest rates, with traders growing increasingly confident about a rate cut in the coming months and largely eliminating short-lived concerns the US Fed might actually consider raising rates. Asian markets closed mostly higher on Monday.

According to CME Group's FedWatch Tool, the possibility of a rate cut in September is at 83.5 percent.

Adding to the gains in the previous three sessions, the Australian stock market is notably higher on Tuesday, following the broadly positive cues from global markets overnight. The benchmark S&P/ASX 200 is moving above the 7,700 level, with gains across most sectors led by technology stocks as well as mining and energy stocks amid firmer commodity prices.

The benchmark S&P/ASX 200 Index is gaining 35.10 points or 0.46 percent to 7,717.50, after touching a high of 7,741.80 earlier. The broader All Ordinaries Index is up 38.60 points or 0.49 percent to 7,990.90. Australian stocks closed significantly higher on Monday.

Among the major miners, Rio Tinto is gaining almost 2 percent, while Fortescue Metals, Mineral Resources and BHP Group are adding more than 1 percent each.

Oil stocks are mostly higher. Woodside Energy is gaining almost 1 percent and Origin Energy is adding almost 2 percent. Beach energy and Santos are flat.

Among tech stocks, WiseTech Global and Xero are gaining more than 1 percent each, while Zip is adding more than 4 percent and Afterpay owner Block is advancing almost 5 percent. Appen is flat.

Gold miners are mostly higher. Gold Road Resources, Newmont and Northern Star resources are adding more than 1 percent each, while Evolution Mining is gaining almost 1 percent and Resolute Mining is advancing more than 2 percent.

Among the big four banks, Commonwealth Bank is gaining almost 1 percent, Westpac is adding more than 1 percent and National Australia Bank is edging up 0.3 percent, while ANZ Banking is losing 1.5 percent.

In other news, shares in Sims slumped more than 9 percent after the metal recycler issued a major profit warning and reportedly set to miss guidance by 90 percent.

Shares in HMC Capital rallied almost 9 percent after the alternative asset manager said in a Macquarie conference presentation that it's operating earnings per share for financial year 2024 was tracking 21 percent higher at 40 cents.

In economic news, the value of retail sales in Australia was down a seasonally adjusted 0.4 percent on month in March, the Australian Bureau of Statistics said on Tuesday - coming in at A$35.663 billion. That missed forecasts for a decline of 0.2 percent following the 0.2 percent increase in February. For the first quarter of 2024, retail sales volume sank 0.4 percent on quarter after rising 0.4 percent in the three months prior.

Meanwhile, the Reserve Bank of Australia will wrap up its monetary policy meeting and then announce its decision on interest rates. The RBA is widely expected to keep its benchmark lending rate unchanged at 4.35 percent.

In the currency market, the Aussie dollar is trading at $0.662 on Tuesday.

Recouping the losses in the previous two sessions, the Japanese stock market is significantly higher in post-holiday trading on Tuesday, with the Nikkei 225 moving well above the 38,600 level, following the broadly positive cues from global markets overnight, with gains across most sectors led by Index heavyweights and technology stocks.

The benchmark Nikkei 225 Index closed the morning session at 38,688.66, up 452.59 points or 1.18 percent, after touching a high of 38,863.14 earlier. Japanese shares ended slightly lower on Thursday prior to the holidays on Friday and Monday.

Market heavyweight SoftBank Group is gaining almost 3 percent and Uniqlo operator Fast Retailing is advancing more than 3 percent. Among automakers, Honda is losing almost 1 percent and Toyota is edging down 0.1 percent.

In the tech space, Advantest is gaining almost 2 percent, Tokyo Electron is advancing almost 4 percent and Screen Holdings is adding more than 4 percent.

In the banking sector, Sumitomo Mitsui Financial is edging up 0.2 percent, while Mitsubishi UFJ Financial and Mizuho Financial are edging down 0.2 to 0.5 percent each.

The major exporters are mixed. Panasonic is losing almost 1 percent and Sony is declining more than 3 percent, while Mitsubishi Electric is gaining almost 1 percent and Canon is adding more than 1 percent. Among the other major gainers, Fujikura and Disco are surging more than 5 percent each, while Rakuten Group, Nomura Holdings and ZOZO are gaining almost 5 percent each. Fuji Electric, CyberAgent, Lasertec, NEXON and Isetan Mitsukoshi are adding almost 4 percent each. TDK and Minebea Mitsumi are advancing more than 3 percent each.

Conversely, Mitsubishi, Daiichi Sankyo and Sumitomo Pharma are losing more than 3 percent each.

In economic news, the services sector in Japan continued to expand in April, and at a faster pace, the latest survey from Jibun Bank revealed on Tuesday with a services PMI score of 54.3. That's up from 54.1 in March, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.

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

Elsewhere in Asia, South Korea is up 1.9 percent, while Singapore, Malaysia and Taiwan are higher by between 0.1 and 0.4 percent each. New Zealand and Hong Kong are down 0.3 and 0.5 percent, respectively. China and Indonesia are relatively flat.

On Wall Street, stocks showed a strong move to the upside during trading on Monday, extending the rally seen to close out the previous week. With the continued advance, the major averages reached their best closing levels in almost a month.

The Nasdaq and the S&P 500 reached new highs for the session going into the close of trading, The Nasdaq surged 192.92 points or 1.2 percent to 16,349.25, the S&P 500 jumped 52.95 points or 1.0 percent to 5,180.74 and the Dow climbed 176.59 points or 0.5 percent to 38,862.27.

The major European markets also moved to the upside on the day. While the German DAX Index jumped by 1.0 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index both rose by 0.5 percent.

Crude oil prices settled modestly higher on Monday following Saudi Arabia's decision to hike its selling price for the European and Asian markets. West Texas Intermediate Crude oil futures for June ended higher by $0.37 or 0.47 percent at $78.48 a barrel.