Asian Markets Mixed In Thin Holiday Trading

Asian stock markets are mixed in this holiday trading on Wednesday, following the mixed cues from Wall Street overnight, as traders remain cautious ahead of the release of closely watched key US inflation data, which could have a significant impact on the outlook for interest rates. Asian markets closed mixed on Tuesday.

The inflation data could have a significant impact on the outlook for interest rates, as US Fed officials have repeatedly said they need greater confidence that inflation is slowing before cutting rates.

Wednesday will also see the release of the minutes of the Fed’s latest monetary policy meeting, which could also shed additional light on officials’ thinking on rates.

Australian shares are trading modestly higher on Wednesday, extending the gains in the previous two sessions, with the benchmark S&P/ASX 200 staying above the 7,800 level, following the mixed cues from Wall Street overnight, with gains in iron ore miners amid firmer metals prices and technology stocks.

The benchmark S&P/ASX 200 Index is gaining 42.30 points or 0.54 percent to 7,866.50, after touching a high of 7,869.30 earlier. The broader All Ordinaries Index is up 46.30 points or 0.57 percent to 8,127.50. Australian stocks ended notably higher on Tuesday.

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

Oil stocks are mixed. Santos is edging down 0.4 percent and Woodside Energy is losing more than 1 percent, while Origin Energy is gaining almost 1 percent and Beach energy is edging up 0.3 percent.

In the tech space, Afterpay owner Block is gaining almost 1 percent, Appen is soaring almost 10 percent and Zip is gaining more than 2 percent, while Xero is slipping almost 1 percent and WiseTech Global is edging down 0.4 percent.

Among the big four banks, Commonwealth Bank is edging down 0.2 percent, while Westpac and National Australia Bank are edging up 0.1 to 0.3 percent each. ANZ Banking is flat.

Among gold miners, Evolution Mining and Northern Star Resources are edging down 0.1 to 0.5 percent each, while Gold Road Resources are losing almost 1 percent. Newmont is gaining almost 1 percent. Resolute Mining is flat.

In the currency market, the Aussie dollar is trading at $0.663 on Wednesday.

The Japanese stock market is modestly lower on Wednesday, giving up some of the gains in the previous two sessions, following the mixed cues from Wall Street overnight. The Nikkei 225 is falling below the 39,700 level, with losses in index heavyweights and financial stocks.

The benchmark Nikkei 225 Index closed the morning session at 39,666.24, down 106.89 points or 0.27 percent, after hitting a low of 39,535.23 earlier. Japanese stocks ended significantly higher on Tuesday.

Market heavyweight SoftBank Group is edging down 0.3 percent and Uniqlo operator Fast Retailing is declining almost 2 percent. Among automakers, Honda is losing almost 1 percent and Toyota is declining more than 1 percent.

In the tech space, Advantest is losing almost 1 percent and Screen Holdings is edging down 0.1 percent, while Tokyo Electron is edging up 0.5 percent.

In the banking sector, Mizuho Financial is edging down 0.4 percent, while Sumitomo Mitsui Financial and Mitsubishi UFJ Financial are losing almost 1 percent each.

Among the major exporters, Sony and Panasonic are edging up 0.1 to 0.3 percent each, while Canon and Mitsubishi Electric are edging down 0.1 to 0.4 percent each.

Among other major losers, ZOZO is losing more than 3 percent, while Mercari and Isuzu Motors are declining almost 3 percent each.

Conversely, Tokyo Gas and Tokyo Electric Power are advancing more than 4 percent each, while Japan Steel Works is gaining almost 4 percent and Mitsui Mining & Smelting is adding more than 3 percent.

In economic news, producer prices in Japan were up 0.2 percent on month in March, the Bank of Japan or BoJ said on Wednesday. That was shy of expectations for an increase of 0.3 percent and was unchanged from the February reading. On a yearly basis, producer prices rose 0.8 percent – matching forecasts and up from 0.7 percent in the previous month.

Export prices rose 0.3 percent on month and 1.0 percent on year, the bank said, while import prices stumbled 0.5 percent on month and 6.9 percent on year.

The BoJ also said the value of overall bank lending in Japan was up 3.2 percent on year in March, coming in at 619.566 trillion yen. That exceeded expectations for an increase of 3.1 percent and was up from 3.0 percent in February. For the first quarter of 2024, overall bank lending was up 3.1 percent on year.

In the currency market, the U.S. dollar is trading in the higher 151 yen-range on Wednesday.

Elsewhere in Asia, Hong Kong is up 1.6 percent, while New Zealand and Taiwan are up 0.3 percent each. China is down 0.4 percent. South Korea is closed for Election Day, while Malaysia, Singapore and Indonesia also are shuttered for Eid-ul-Fitr.

On the Wall Street, stocks saw considerable volatility over the course of the trading session on Tuesday, following the lackluster performance seen on Monday. The major averages fluctuated as the day progressed, with the Nasdaq and the S&P 500 eventually closing in positive territory.

While the Nasdaq rose 52.68 points or 0.3 percent to 16,306.64 and the S&P 500 inched up 7.52 points or 0.1 percent to 5,209.91, the narrower Dow ended the day slightly lower, edging down 9.13 points or less than a tenth of a percent to 38,883.67.

Meanwhile, the major European markets all moved to the downside on the day. While the German DAX Index tumbled 1.3 percent, the French CAC 40 Index slumped by 0.9 percent and the U.K.’s FTSE 100 Index edged down by 0.1 percent.

Crude oil prices fell on Tuesday, slumping for a second straight session as traders assessed the prospect of meaningful progress in Gaza ceasefire talks. West Texas Intermediate Crude oil futures for May sank $1.20 or 1.4 percent at $85.23 a barrel.