Asian Markets Track Wall Street Lower

(RTTNews) - Asian stock markets are trading mostly lower on Monday, following the broadly negative cues from global markets on Friday, as traders react to softer inflation data from China. They also react to a report showing US employment rose by less than expected in the month of August and seem worried the US Fed may have waited too long to prevent the economy from slipping into a recession. Asian markets closed mostly lower on Friday.

Following the data, the chances of a 25-basis-point reduction by the Fed this month came down to 59% from about 70% a week earlier, while those of a bigger 50-bp reduction rose to 41% from 30% last week, according to the CME FedWatch tool.

The Australian stock market is currently trading significantly lower on Monday, reversing the gains in the previous two sessions, following the broadly negative cues from global markets on Friday. The benchmark S&P/ASX 200 index is falling well below the 8,000.00 mark, with weakness across most sectors led by gold miners, financial and energy stocks.

The benchmark S&P/ASX 200 Index is losing 58.50 points or 0.73 percent to 7,954.90, after hitting a low of 7,918.90 earlier. The broader All Ordinaries Index is down 57.00 points or 0.69 percent to 8,157.80. Australian stocks closed modestly higher on Friday.

Among the major miners, Rio Tinto is edging down 0.1 percent, while BHP Group, Fortescue Metals and Mineral Resources are edging up 0.3 to 0.5 percent each. Oil stocks are mostly lower. Santos, Origin Energy and Woodside Energy are losing almost 1 percent each, while Beach energy is declining almost 3 percent.

Among tech stocks, Afterpay owner Block is declining almost 4 percent and Xero is losing almost 2 percent, while Appen and WiseTech Global are edging up 0.2 to 0.5 percent each. Zip is flat.

Gold miners are mostly lower. Evolution Mining is losing more than 3 percent, Resolute Mining is declining almost 4 percent and Northern Star Resources is down more than 1 percent, while Newmont and Gold Road Resources are slipping almost 3 percent each.

Among the big four banks, Commonwealth Bank, ANZ Banking and National Australia Bank are losing more than 1 percent each, while Westpac is down 1.5 percent.

In the currency market, the Aussie dollar is trading at $0.668 on Monday.

The Japanese stock market is trading sharply lower on Monday, adding to the losses in the previous four sessions. The benchmark S&P/ASX 200 is falling more than 2 percent to well below the 35,700 level, following the broadly negative cues from global markets on Friday, with losses across most sectors lead by index heavyweights and technology stocks.

The benchmark Nikkei 225 Index closed the morning session at 35,613.32, down 778.15 or 2.14 percent, after hitting a low of 35,247.87 earlier. Japanese shares ended significantly lower on Friday.

Market heavyweight SoftBank Group is losing more than 2 percent and Uniqlo operator Fast Retailing is declining 2.5 percent. Among automakers, Honda is losing more than 3 percent, while Toyota is slipping almost 5 percent.

In the tech space, Screen Holdings is losing more than 5 percent, Advantest is declining almost 5 percent and Tokyo Electron is plunging almost 7 percent.

In the banking sector, Sumitomo Mitsui Financial is slipping almost 3 percent, while Mitsubishi UFJ Financial is losing more than 3 percent and Mizuho Financial is declining almost 4 percent.

The major exporters are mostly lower. Canon is losing more than 2 percent, Mitsubishi Electric is declining 2.5 percent, Panasonic is down almost 2 percent and Sony is slipping more than 3 percent.

Among other major losers, Renesas Electronics and Lasertec are plunging almost 8 percent each, while Tokyo Electric Power is sliding more than 6 percent. M3, Socionext and Resonac Holdings are slipping more than 5 percent each, while Aozora Bank, Fuji Electric, Murata Manufacturing and Yaskawa Electric are losing almost 5 percent each.

Conversely, Seven & I Holdings is losing almost 3 percent.

In economic news, Japan's gross domestic product expanded a seasonally adjusted 0.7 percent on quarter in the second quarter of 2024, the Cabinet Office said on Monday. That was shy of expectations for an increase of 0.8 percent, which would have been unchanged from the previous three months. On an annualized basis, GDP rose 2.9 percent - again missing forecasts for 3.1 percent, which again would have been unchanged. The GDP price index was up 3.2 percent on year, topping forecasts for 3.0 percent, which would have been unchanged.

Meanwhile, overall bank lending in Japan was up 3.0 percent on year in August, the Bank of Japan said on Monday - coming in at 624.243 trillion yen. That was in line with expectations and down from the 3.2 percent increase in July.

Japan also posted a current account surplus of 3.193 trillion yen in July, the Ministry of Finance said on Monday - up 15.1 percent on year. That's up from the 1.533 trillion yen surplus in June. Imports were up 16.8 percent on year to 9.899 trillion yen, while exports rose an annual 9.4 percent to 9.417 trillion yen for a 4482.7 billion yen deficit. The capital account saw a deficit of 20.0 billion yen, while the financial account had a surplus of 2.332 trillion yen.

In the currency market, the U.S. dollar is trading in the higher 142 yen-range on Monday.

Elsewhere in Asia, Hong Kong and Taiwan are down 1.8 and 2.0 percent, respectively. New Zealand, China, South Korea and Malaysia are lower by between 0.3 and 1.0 percent each. Singapore is bucking the trend and is up 0.6 percent. Indonesia is flat.

On Wall Street, stocks moved sharply lower during trading on Friday with traders reacting negatively the monthly jobs report. The major averages all showed significant moves to the downside on the day, with the tech-heavy Nasdaq tumbling to its lowest closing level in almost a month.

The major averages finished the day near their lows of the session. The Nasdaq plummeted 436.83 points or 2.6 percent to 16,690.83, the S&P 500 plunged 94.99 points or 1.7 percent to 5,408.42 and the Dow slumped 410.34 points or 1.0 percent to 40,345.41.

The major European markets have also moved to the downside on the day. While the German DAX Index tumbled 1.5 percent, the French CAC 40 Index slumped by 1.1 percent and the U.K.'s FTSE 100 Index slid by 0.7 percent.

Crude oil prices fell to an 18-month low on Friday, weighed down persisting concerns about the outlook for oil demand following the disappointing jobs report. West Texas Intermediate Crude oil futures for October ended down by $1.48 or 2.1 percent at $67.67 a barrel.