Asian Markets Track Global Markets Higher

Asian stock markets are trading mostly higher on Wednesday, following the broadly positive cues from global markets overnight, reflected a positive reaction to the highly anticipated report on US cons...

RTT Staff Writer•Wednesday, March 13, 2024•3 min read

Asian stock markets are trading mostly higher on Wednesday, following the broadly positive cues from global markets overnight, reflected a positive reaction to the highly anticipated report on US consumer price inflation in February, which showed a slowdown in U.S. core price growth and raised optimism about the US Fed cutting interest rates in June. Asian markets closed mixed on Tuesday.

A separate report on US producer price inflation for February is scheduled to be released later in the day.

Australian shares are trading modestly higher on Wednesday, adding to the slight gains in the previous session, with the benchmark S&P/ASX 200 staying above the 7,700 level, following the broadly positive cues from global markets overnight, with gains in index heavyweights and financial stocks partially offset by losses in technology stocks.

The benchmark S&P/ASX 200 Index is gaining 18.40 points or 0.24 percent to 7,730.90, after touching a high of 7,741.80 earlier. The broader All Ordinaries Index is up 18.50 points or 0.23 percent to 7,991.50. Australian stocks ended slightly higher on Tuesday.

Among major miners, Mineral Resources is edging up 0.2 percent and Rio Tinto is gaining more than 1 percent, while Fortescue Metals is edging down 0.4 percent and BHP Group is declining almost 1 percent.

Oil stocks are mostly lower. Santos is edging up 0.1 percent, while Origin Energy and Woodside Energy are edging down 0.2 to 0.3 percent each. Beach energy is flat.

In the tech space, Afterpay owner Block and WiseTech Global are losing almost 1 percent each, while Zip is declining almost 2 percent and Appen is plummeting almost 9 percent after it said it had been approached by a US tech rival about a potential takeover. Xero is flat.

Among the big four banks, National Australia Bank is gaining almost 1 percent, while ANZ Banking and Westpac are adding more than 1 percent each. Commonwealth Bank is flat.

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

In other news, shares in Liontown Resources are jumping more than 11 percent after it agreed to a $550 million debt funding facility with banks including Commonwealth Bank and National Australia Bank, for lithium project expansions.

In the currency market, the Aussie dollar is trading at $0.661 on Wednesday.

The Japanese stock market is modestly lower on Wednesday after opening in the green, extending the losses in the previous two sessions, despite the broadly positive cues from global markets overnight. The Nikkei 225 is falling below the 38,800 level, with losses in index heavyweights and exporters.

The benchmark Nikkei 225 Index closed the morning session at 38,636.12, down 161.39 points or 0.42 percent, after touching a high of 39,147.80 earlier. Japanese stocks ended slightly lower on Tuesday.

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

In the tech space, Advantest is edging down 0.5 percent, while Screen Holdings is edging up 0.2 percent and Tokyo Electron is gaining almost 1 percent.

In the banking sector, Mizuho Financial is edging down 0.3 percent, while Sumitomo Mitsui Financial is gaining almost 1 percent and Mitsubishi UFJ Financial is edging up 0.1 percent.

Among the major exporters, Sony is edging up 0.5 percent, while Canon is losing almost 1 percent, Panasonic is declining almost 2 percent and Mitsubishi Electric is down more than 1 percent.

Among other major losers, Kawasaki Kisen Kaisha and Credit Saison are losing more than 3 percent each, while BANDAI NAMCO, Daiichi Sankyo, Mercari and Nippon Yusen K.K. are declining almost 3 percent each.

Conversely, Furukawa Electric is gaining almost 3 percent.

In the currency market, the U.S. dollar is trading in the lower 147 yen-range on Wednesday.

Elsewhere in Asia, Singapore, Hong Kong, South Korea, Indonesia, and Taiwan are higher by between 0.1 and 0.6 percent each. Malaysia is down 1.1 percent, while New Zealand and China are down 0.2 and 0.5 percent, respectively.

On the Wall Street, stocks showed a strong move back to the upside during trading on Tuesday after moving mostly lower over the two previous sessions. The major averages fluctuated over the course of the session but finished the day firmly in positive territory.

The tech-heavy Nasdaq helped lead the way higher on the day, surging 246.36 points or 1.5 percent to 16,265.63. The S&P 500 also jumped 57.33 points or 1.1 percent to 5,175.27, while the narrower Dow climbed 235.83 points or 0.6 percent to 39,005.49.

The major European markets all also moved to the upside on the day. While the French CAC 40 Index advanced by 0.8 percent, the U.K.’s FTSE 100 Index and the German DAX Index jumped by 1.0 percent and 1.2 percent, respectively.

Crude oil prices settled lower again on Tuesday on the U.S. inflation data and persisting worries about the outlook for demand. West Texas Intermediate Crude oil futures for April sank $0.37 at $77.56 a barrel.