Asian Markets Trading Mostly Lower

(RTTNews) - Asian stock markets are trading mostly lower on Tuesday, following the mixed cues from Wall Street overnight, as traders book some profits and remain cautious ahead of a report on US consumer confidence in the month of August later in the day and more closely watched US inflation data later in the week. Asian markets closed mostly higher on Monday.

US Fed Chair Jerome Powell recently signaled imminent interest rate cuts at the monetary policy meeting in September. However, traders may feel the rate cut is already priced into the markets.

According to CME Group's FedWatch Tool, there is a 69.5 percent chance of a quarter point rate cut at the September 17-18 meeting and a 30.5 percent chance of a half point rate cut.

Giving up some of the gains in the previous session, the Australian stock market is trading slightly lower on Tuesday after opening in the green, following the mixed cues from Wall Street overnight. The benchmark S&P/ASX 200 is staying below the 8,100 level, with weakness in gold miners and technology stocks partially offset by gains in iron ore miners and energy stocks amid spiking commodity prices.

The benchmark S&P/ASX 200 Index is losing 7.70 points or 0.10 percent to 8,076.80, after hitting a low of 8,074.30 and a high of 8,107.30 and a low of 7,801.60 earlier. The broader All Ordinaries Index is down 10.50 points or 0.13 percent to 8,301.00. Australian stocks closed significantly higher on Monday.

Among the major miners, BHP Group is gaining more than 2 percent and Rio Tinto is edging up 0.5 percent, while Fortescue Metals and Mineral Resources are adding almost 1 percent each.

Oil stocks are mostly higher. Woodside Energy is gaining more than 3 percent and Origin Energy is edging up 0.3 percent, while Beach energy and Santos are adding almost 2 percent each.

Among tech stocks, Appen is edging up 0.4 percent and WiseTech Global is adding almost 1 percent, while Xero is losing more than 1 percent and Afterpay owner Block is edging down 0.2 percent. Zip is plunging almost 10 percent despite a sharp lift in the value of transactions as more US consumers adopt its short-term credit app. Gold miners are mixed. Gold Road Resources is losing almost 1 percent and Evolution Mining is edging down 0.2 percent, while Resolute Mining is edging up 0.5 percent. Northern Star resources and Newmont are flat.

Among the big four banks, Commonwealth Bank is edging down 0.5 percent each, while Westpac, ANZ Banking and National Australia Bank are edging up 0.1 to 0.3 percent each.

In other news, shares in Johns Lyng Group are plummeting 31 percent after the building services provider reported a decline in full-year revenue and earnings.

In the currency market, the Aussie dollar is trading at $0.678 on Tuesday.

Extending the losses in the previous session, the Japanese stock market is slightly lower on Tuesday, with the Nikkei 225 falling well below the 38,100 level, following the mixed cues from Wall Street overnight, with weakness in index heavyweights and technology stocks.

The benchmark Nikkei 225 Index closed the morning session at 38,055.62, down 54.60 points or 0.14 percent, after hitting a low of 37,911.32 earlier. Japanese shares ended significantly lower on Monday.

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

In the tech space, Advantest and Tokyo Electron are losing more than 2 percent each, while Screen Holdings is declining more than 1 percent.

In the banking sector, Mitsubishi UFJ Financial is gaining almost 1 percent and Mizuho Financial is edging up 0.2 percent, while Sumitomo Mitsui Financial is edging down 0.2 percent.

The major exporters are mostly higher. Panasonic and Canon are edging up 0.4 to 0.5 percent each, while Sony is gaining almost 2 percent. Mitsubishi Electric is edging down 0.2 percent.

Among the other major losers, Lasertec is losing more than 4 percent and Disco is declining more than 3 percent, while Hitachi and Sumitomo Pharma are down almost 3 percent each.

Conversely, JTEKT is gaining more than 4 percent and Yokogawa Electric is adding almost 4 percent, while Nissui and Marui Group are up more than 3 percent each. Aozora Bank, Credit Saison, Seven & I Holdings, Mitsui O.S.K. Lines and Dai-ichi Life are advancing almost 3 percent each.

In economic news, producer prices in Japan were up 2.8 percent on year in July, the Bank of Japan said on Tuesday. That was beneath expectations for an increase of 2.9 percent and down from the upwardly revised 3.1 percent gain in June (originally 3.0 percent). On a monthly basis, producer prices rose 0.3 percent - up from 0.1 percent in the previous month. Excluding international transportation, producer prices were up 0.3 percent on month and 2.7 percent on year.

In the currency market, the U.S. dollar is trading in the higher 144 yen-range on Tuesday.

Elsewhere in Asia, New Zealand, China, Hong Kong, Singapore, South Korea, Indonesia and Taiwan are lower by between 0.1and 0.7 percent each. Malaysia is bucking the trend and is up 0.5 percent.

On Wall Street, stocks turned in a mixed performance during trading on Monday, with the Dow reaching a new record closing high, while the tech-heavy Nasdaq saw a notable pullback after posting a strong gain last week.

The Dow pulled back well off its best levels of the session and briefly dipped into negative territory but ended the day up 65.44 points or 0.2 percent at 41,240.52. Meanwhile, the Nasdaq slid 152.03 points or 0.9 percent to 17,725.77 and the S&P 500 fell 17.77 points or 0.3 percent at 5,616.84.

The major European markets also finished the day narrowly mixed, with the U.K. markets closed for a holiday. While the French CAC 40 Index rose by 0.2 percent, the German DAX Index edged down by 0.1 percent.

Crude oil prices moved sharply higher on Monday, extending recent gains amid renewed geopolitical concerns after Hezbollah and Israeli forces exchanged attacks across the Lebanon-Israel border. West Texas Intermediate crude for October delivery shot up $2.36 or 3.2 percent to $77.19 a barrel.