Asian Markets Track Global Markets 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 data showing much stronger than expected US job growth in the month of May and also an unexpected uptick in the unemployment rate. The data faded hopes of a rate cut by the US Fed in September. Asian markets closed mixed on Friday.

Traders also cautiously await the Fed's latest monetary policy decision later in the week. With the central bank widely expected to leave interest rates unchanged, more attention is likely to be paid to a report on consumer price inflation, also coming this week.

The Japanese stock market is trading notably higher on Monday, reversing to the slight losses in the previous session. The benchmark S&P/ASX 200 is moving to near the 38,900 level, despite the broadly negative cues from global markets on Friday, with gains across most sectors led by index heavyweights and financial stocks after Japan's annualized GDP fell less than expected in the first quarter.

The benchmark Nikkei 225 Index closed the morning session at 38,872.19, up 188.26 or 0.49 percent, after touching a high of 38,911.09 earlier. Japanese shares ended slightly lower on Friday.

Market heavyweight SoftBank Group is gaining 1.5 percent and Uniqlo operator Fast Retailing is adding almost 1 percent. Among automakers, Honda is advancing almost 2 percent and Toyota is also gaining almost 2 percent.

In the tech space, Screen Holdings is gaining almost 1 percent and Advantest is edging up 0.3 percent, while Tokyo Electron is edging down 0.2 percent.

In the banking sector, Sumitomo Mitsui Financial is gaining 1.5 percent, while Mizuho Financial and Mitsubishi UFJ Financial are adding more than 1 percent each.

The major exporters are higher. Sony is edging down 0.4 percent, while Mitsubishi Electric is adding almost 1 percent and Panasonic is gaining almost 2 percent. Canon is flat.

Among other major gainers, Socionext and Sharp are gaining more than 4 percent each, while Hitachi, Sumitomo Pharma and ENEOS are adding more than 3 percent each. Dai-ichi Life, Sompo Holdings, Fujitsu, Sumitomo Electric Industries and Tokyo Gas are advancing almost 3 percent each.

Conversely, Kao is losing almost 5 percent and M3 is declining almost 3 percent.

In economic news, Japan's gross domestic product contracted a seasonally adjusted 0.5 percent on quarter in the first quarter of 2024, the Cabinet Office said on Monday - matching forecasts and unrevised from last month's advance estimate. GDP was up 0.1 percent on quarter in the fourth quarter of 2023. On an annualized basis, GDP was revised up to -1.8 percent from the estimate of -2.0 percent. GDP was up 0.2 percent on year in the three months prior.

In the currency market, the U.S. dollar is trading in the higher 156 yen-range on Monday.

The Australian stock market is closed for King's Birthday on Monday. Australian stocks closed notably higher on Friday.

In the currency market, the Aussie dollar is trading at $0.658 on Monday.

Elsewhere in Asia, New Zealand, South Korea, Singapore and Indonesia are lower by between 0.1 and 0.7 percent each. Malaysia is relatively flat. Markets in Taiwan, China and Hong Kong are closed for the Dragon Boat Festival.

On Wall Street, stock showed a lack of direction over the course of the trading day on Friday, extending the lackluster performance seen during Thursday's session. The major averages spent the day bouncing back and forth across the unchanged line before closing modestly lower. After reaching a new record intraday high in early afternoon trading, the S&P 500 ended the day down 5.97 points or 0.1 percent at 5,346.99. The Dow also dipped 87.18 points or 0.2 percent to 38,798.99, while the Nasdaq slipped 39.99 points or 0.2 percent to 17,133.13.

The major European markets all also moved to the downside on the day. The German DAX Index, the French CAC 40 Index and the U.K.'s FTSE 100 Index all fell by 0.5 percent.

Crude oil prices settled flat on Friday on concerns the Federal Reserve may hold interest rates higher for longer following the stronger than expected U.S. non-farm payroll report for May. West Texas Intermediate Crude oil futures for July ended at $75.53 a barrel, down $0.02. WTI crude futures shed about 2 percent in the week.