Asian Markets Track Wall Street Lower

Asian stock markets are trading mostly lower on Wednesday, following the broadly negative cues from Wall Street overnight, as traders continued to move money out of relatively risky assets like stocks ahead of the release of key US inflation data later in the day that could have a significant impact on the outlook for interest rates. Asian markets closed mostly lower on Tuesday.

Fed Chair Jerome Powell had said following last week’s rate hike that the central bank would take a “data-dependent approach” to future monetary policy decisions.

There are also concerns after U.S. President Joe Biden and top lawmakers failed to break a deadlock on the US debt ceiling crisis that could result in default if not addressed.

The Australian stock market is modestly lower on Wednesday, extending the losses in the previous session, with the benchmark S&P/ASX 200 staying above the 7,200 mark, following the broadly negative cues from Wall Street overnight, dragged by losses in energy and financial stocks.

The benchmark S&P/ASX 200 Index is losing 11.70 points or 0.16 percent to 7,252.40, after hitting a low of 7,236.20 earlier. The broader All Ordinaries Index is down 8.10 points or 0.11 percent to 7,448.60. Australian stocks ended modestly lower on Tuesday.

Among major miners, BHP Group and Fortescue Metals are edging up 0.2 percent each, while Rio Tinto is edging down 0.3 percent and Mineral Resources is losing almost 1 percent.

Oil stocks are mostly lower. Santos and Beach energy are losing almost 1 percent each, while Woodside Energy and Origin Energy are edging down 0.2 percent each.

In the tech space, Afterpay owner Block is gaining more than 1 percent and WiseTech Global is edging up 0.1 percent, while Xero is edging down 0.2 percent. Zip is flat. Shares in Appen are plummeting almost 18 percent after it revealed that fiscal 2023 revenue will decline materially.

Among the big four banks, National Australia Bank and ANZ Banking are losing almost 1 percent each, while Commonwealth Bank and Westpac are edging down 0.3 to 0.4 percent each.

Among gold miners, Resolute Mining is gaining more than 1 percent, while Gold Road Resources, Evolution Mining and Northern Star Resources are advancing almost 1 percent each. Newcrest Mining is losing almost 1 percent.

In the currency market, the Aussie dollar is trading at $0.677 on Wednesday.

The Japanese stock market is notably lower on Wednesday, giving up some of the gains in the previous session, with the Nikkei 225 falling below the 29,200 level, following the broadly negative cues from Wall Street overnight, as traders indulge in cautious trades ahead of the release of key US inflation data later in the day that will provide cues on the outlook for interest rate.

The benchmark Nikkei 225 Index closed the morning session at 29,113.33, down 129.49 points or 0.44 percent, after hitting a low of 29,084.08 earlier. Japanese stocks ended significantly higher on Tuesday.

Market heavyweight SoftBank Group is edging down 0.3 percent, while Uniqlo operator Fast Retailing is gaining almost 1 percent. Among automakers, Honda and Toyota are losing almost 1 percent each.

In the tech space, Screen Holdings is gaining more than 1 percent and Advantest is edging up 0.2 percent, while Tokyo Electron is losing almost 2 percent.

In the banking sector, Sumitomo Mitsui Financial is gaining more than 1 percent, while Mizuho Financial and Mitsubishi UFJ Financial are edging up 0.1 to 0.4 percent each.

Among the major exporters, Sony is losing almost 1 percent, Mitsubishi Electric is declining almost 3 percent, Panasonic is down almost 2 percent and Canon is edging down 0.2 percent.

Among other major losers, Mitsubishi Motors is plummeting more than 9 percent, while NTN and Pacific Metals are plunging almost 9 percent. Taiyo Yuden is losing more than 3 percent and Mitsubishi Electric is down almost 3 percent.

Conversely, Marui Group is skyrocketing almost 16 percent, Yokogawa Electric is soaring more than 9 percent, Nichirei is surging more than 6 percent and Mitsubishi Corp. is losing almost 4 percent, while JFE Holdings and Nippon Yusen K.K. are down almost 3 percent each.

In the currency market, the U.S. dollar is trading in the lower 135 yen-range on Wednesday.

Elsewhere in Asia, , China, Hong Kong, South Korea, Taiwan and Malaysia are lower by between 0.1 and 1.0 percent each, while New Zealand, Singapore and Indonesia are higher by between 0.1 and 0.4 percent each.

On Wall Street, stocks remained mostly lower throughout the trading day on Tuesday after coming under pressure early in the session. The major averages all moved to the downside on the day after ending Monday’s trading narrowly mixed.

The tech-heavy Nasdaq slid 77.36 points or 0.6 percent to 12,179.55 and the S&P 500 fell 18.95 points or 0.5 percent to 4,119.17. The narrower Dow flirted with positive territory late in the session but closed down 56.88 points or 0.2 percent at 33,561.81.

The major European markets also moved to the downside on the day. While the French CAC 40 Index slid by 0.6 percent, the U.K.’s FTSE 100 Index edged down by 0.2 and the German DAX Index closed nearly unchanged.

Crude oil prices shook off early weakness to finish higher amid expectations of higher seasonal demand and on the U.S. government’s plans to refill the emergency oil reserve. West Texas Intermediate Crude oil futures for June settled at $73.71 a barrel, gaining $0.55 or 0.8 percent.

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