Asian stock markets mostly showed gains on Tuesday, despite the negative sentiment from Wall Street the night before. Concerns lingered among traders about the potential inflationary impact of incoming U.S. President Donald Trump’s protectionist trade policies next year. Some investors chose to secure their profits as the year drew to a close. On Monday, the Asian markets had varied outcomes.
In Australia, the stock market experienced a noticeable decline on Tuesday, continuing its losing streak from the previous session and following Wall Street's negative lead. The S&P/ASX 200 index dropped below the 8,200 mark, with the mining, financial, and technology sectors facing downturns, partially countered by the upward movement in energy stocks.
The S&P/ASX 200 Index fell by 53.70 points, equivalent to a 0.65 percent decline, reaching 8,181.30 after previously hitting 8,168.70. The All Ordinaries Index decreased by 51.20 points or 0.60 percent to stand at 8,444.80, following a modest dip in Australian stocks on Monday.
Among notable miners, BHP Group decreased by almost 1 percent, with Fortescue Metals and Rio Tinto each down by 0.5 percent. In contrast, Mineral Resources advanced by over 1 percent.
Oil shares presented a brighter picture, with Beach Energy seeing gains exceeding 1 percent, Origin Energy edging up by 0.2 percent, and both Santos and Woodside Energy increasing by nearly 1 percent.
Tech companies faced mixed fortunes, as Afterpay owner Block dropped nearly 2 percent, Zip fell by 1.5 percent, WiseTech Global dipped almost 1 percent, and Xero slid by 0.2 percent. Conversely, Appen rose by more than 1 percent.
Gold mining companies mostly saw declines. Newmont decreased by over 2 percent, Evolution Mining was down by 0.5 percent, and Northern Star Resources dropped nearly 1 percent. Meanwhile, Gold Road Resources edged up by 0.2 percent, and Resolute Mining gained close to 1 percent.
Australia's major banks, including Commonwealth Bank, ANZ Banking, Westpac, and National Australia Bank, each fell by almost 1 percent.
In other developments, Mesoblast stocks surged by over 9 percent following the recent U.S. FDA approval of its mesenchymal stromal cell (MSC) therapy.
In currency markets, the Australian dollar was trading at $0.623 on Tuesday.
Japanese financial markets were closed for the New Year's Eve holiday. On Monday, Japanese stocks ended significantly lower.
The U.S. dollar traded in the lower 156 yen range on Tuesday.
Elsewhere in Asia, New Zealand slipped by 1.2 percent, and China, Singapore, Malaysia, and Taiwan saw declines ranging from 0.1 to 0.7 percent. On the other hand, Hong Kong and Indonesia each rose by 0.6 percent. South Korean markets were closed for the New Year’s Eve holiday, with early closures planned for markets in Australia, New Zealand, Singapore, and Hong Kong.
On Wall Street, after a sharp initial drop on Monday, stocks recovered some losses during the trading day, though they stayed in negative territory. This added to the substantial drops seen last Friday.
The Dow reduced its losses from over 700 points but still closed 418.48 points down, or 1.0 percent lower, at 42,573.73. The Nasdaq, known for its tech focus, also fell 235.25 points, or 1.2 percent, to 19,486.78, while the S&P 500 decreased by 63.90 points, or 1.1 percent, to 5,906.94.
In Europe, the major markets all experienced declines. The French CAC 40 Index slid by 0.6 percent, with the German DAX Index and the U.K.'s FTSE 100 Index each down by 0.4 percent.
Crude oil prices hit a five-week high on Monday, spurred by recent data indicating a larger-than-expected fall in U.S. crude inventories and anticipations of increased demand from China. West Texas Intermediate Crude futures for February rose by 0.6 percent, reaching $70.99 per barrel.
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