Day: September 2, 2024

Asian stock markets are trading mostly lower on Monday, despite the broadly positive cues from Wall Street on Friday, as traders react to downbeat factory activity data from China for the fourth straight month in August. They also remain optimistic over the outlook for interest rates after a report showing US consumer prices increased in line with estimates in July, while the annual rate of price growth was unexpectedly flat. Asian markets closed mostly higher on Friday.

While the US data has reinforced expectations of an interest rate cut by the Fed this month, traders expressed uncertainty about the pace of rate cuts, leading to some volatility in the markets.

According to CME Group’s FedWatch Tool, there is a 69.5 percent chance of a quarter-point rate cut next month and a 30.5 percent chance of a half-point rate cut.

The Australian stock market is currently trading modestly lower on Monday, reversing the gains in the previous session, despite the broadly positive cues from Wall Street on Friday. The benchmark S&P/ASX 200 index is falling below the 8,100.00 level, with weakness is mining stocks amid tumbling metal prices. Traders also reacted to data that showed domestic manufacturing sector extended its slump in August.

The benchmark S&P/ASX 200 Index is losing 17.90 points or 0.22 percent to 8,074.00, after hitting a low of 8,041.30 earlier. The broader All Ordinaries Index is down 22.90 points or 0.28 percent to 8,293.80. Australian stocks closed notably higher on Friday.

Among the major miners, Rio Tinto is losing almost 1 percent and BHP Group is edging down 0.4 percent, while Mineral Resources is adding more than 1 percent and Fortescue Metals is edging up 0.3 percent.

Oil stocks are mostly higher. Santos is edging up 0.2 percent and Woodside Energy is gaining almost 1 percent, while Origin Energy is edging down 0.3 percent. Beach energy is flat.

Among tech stocks, Xero and WiseTech Global are edging up 0.2 to 0.3 percent each, while Afterpay owner Block and Zip are losing almost 1 percent each. Appen is surging 5.5 percent.

Gold miners are mostly lower. Evolution Mining is losing more than 2 percent, Resolute Mining is declining almost 4 percent, Northern Star Resources is down almost 2 percent and Gold Road Resources is slipping more than 1 percent. Newmont is edging up 0.4 percent.

Among the big four banks, Commonwealth Bank, National Australia Bank, ANZ Banking and Westpac are edging up 0.2 to 0.4 percent each.

In other news, shares in Imugene are skyrocketing more than 27 percent after medical developer released promising results from a trial of its cancer treatment in 10 patients. it reported a net loss near $150 million in the 2024 financial year.

Shares in REA Group have been halted minutes before the commencement of trading this morning after the online real estate platform confirmed its mulling a bid for UK-listed Rightmove.

Shares in Star Entertainment have been suspended from trading for not publishing its full-year result last week.

In economic news, the manufacturing sector in Australia continued to contract in August, albeit at a slower rate, the latest survey from Judo Bank revealed on Monday with a manufacturing PMI score of 48.5. That’s up from 47.5 in July, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction.

The total number of building permits issued in Australia was up a seasonally adjusted 10.4 percent on month in July, the Australian Bureau of Statistics said on Monday – coming in at 14,797. That beat forecasts for an increase of 2.4 percent following the 6.5 percent contraction in June. Permits for private sector houses rose 0.6 percent on month to 9,252, while permits for private sector dwellings excluding houses surged 32.1 percent to 5,234. The value of total residential building rose 9.0 percent to A$8.49 billion, while the value of non-residential building added 3.2 percent to A$4.69 billion.

Meanwhile, company gross operating profits in Australia were down a seasonally adjusted 5.3 percent on quarter in the second quarter of 2024, the Australian Bureau of Statistics said on Monday. That missed expectations for a decline of 0.6 percent following the 2.5 percent drop in the three months prior. Profits were down 3.9 percent on year. Manufacturing sales rose 0.3 percent on quarter and 0.7 percent on year, while inventories rose 0.1 percent on quarter and 1.5 percent on year and wages added 0.7 percent on quarter and 5.3 percent on year.

In the currency market, the Aussie dollar is trading at $0.676 on Monday.

The Japanese stock market is trading modestly higher on Monday, adding to the gains in the previous session. The benchmark S&P/ASX 200 is moving above the 38,700 level, following the broadly positive cues from Wall Street on Friday, with gains across most sectors lead by index heavyweights and technology stocks.

The benchmark Nikkei 225 Index closed the morning session at 38,709.88, up 62.13 or 0.16 percent, after hitting a low of 38,670.66 earlier. Japanese shares ended notably higher on Friday.

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

In the tech space, Screen Holdings is gaining almost 1 percent, Advantest is advancing more than 3 percent and Tokyo Electron is adding more than 1 percent.

In the banking sector, Sumitomo Mitsui Financial is edging up 0.5 percent, while Mitsubishi UFJ Financial and Mizuho Financial are gaining more than 1 percent each.

The major exporters are mostly higher. Canon and Mitsubishi Electric are gaining almost 1 percent each, while Panasonic is adding more than 2 percent. Sony is losing 1.5 percent.

Among other major gainers, IHI and Kawasaki Heavy Industries are gaining almost 5 percent each, while Yaskawa Electric and Tokyo Electric Power are adding almost 4 percent each. Credit Saison, Murata Manufacturing, TDK and Daiwa Securities are gaining more than 3 percent each, while Takashimaya, Sumco, Mitsubishi Chemical Group and NEC are advancing almost 3 percent each.

Conversely, Sumitomo Pharma is plunging almost 7 percent and Chugai Pharmaceutical is sliding almost 5 percent, while Toto and ZOZO are slipping more than 3 percent each. Nitori Holdings and Sapporo Holdings are losing almost 3 percent each.

In economic news, the manufacturing sector in Japan continued to contract in August, albeit at a slower rate, the latest survey from Jibun Bank revealed on Monday with a manufacturing PMI score of 49.8. That’s up from 49.1 in July, although it remains beneath 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 146 yen-range on Monday.

Elsewhere in Asia, Hong Kong is down 1.6 percent, while New Zealand, China, Malaysia and Taiwan are lower by between 0.1 and 0.6 percent each. Singapore and Indonesia are up 0.5 percent each. South Korea is relatively flat.

On Wall Street, stocks fluctuated over the course of the trading session on Friday before eventually ending day sharply higher. The Dow closed higher for the fifth time in the past six sessions, reaching a new record closing high.

The major averages reached new highs for the session going into the close of trading. The Nasdaq surged 197.19 points or 1.1 percent to 17,713.62, the S&P 500 jumped 56.44 points or 1.0 percent to 5,648.40 and the Dow climbed 228.03 points or 0.6 percent to 41,563.08.

Meanwhile, the major European markets ended the day slightly lower. While the French CAC 40 Index edged down by 0.1 percent, the U.K.’s FTSE 100 Index and the German DAX Index both closed just below the unchanged line.

Crude oil prices showed a significant move to the downside on Friday on reports that OPEC is set to proceed with a planned oil output hike from October. West Texas Intermediate crude for October delivery plunged $2.36 or 3.1 percent to $73.55 a barrel.