Asian stock markets predominantly traded lower on Tuesday, influenced by mixed signals from Wall Street overnight. Investors remain cautious due to unresolved economic challenges in China and the perceived insufficient financial policy interventions currently in place. Additionally, market participants are hesitant to make decisive moves before the anticipated interest rate decision by the U.S. Federal Reserve on Wednesday. The region saw mixed market outcomes on Monday.
Further policy announcements are expected from the Bank of Japan and the Bank of England, both scheduled for Thursday.
In Australia, the stock market extended its gains midway through Tuesday’s trading session, rebounding from a five-day losing streak. The benchmark S&P/ASX 200 index remains well over the 8,300 mark, buoyed by strength in financial and technology sectors, despite a drag from weaker performances in mining and energy sectors due to declining commodity prices.
The S&P/ASX 200 Index is up 73.80 points or 0.90 percent at 8,323.30, having peaked earlier at 8,327.30. Meanwhile, the broader All Ordinaries Index increased by 74.30 points or 0.88 percent to 8,568.30. Australian markets had notably declined on Monday.
In mining, Fortescue Metals and Rio Tinto slightly decreased by 0.1 to 0.2 percent, while Mineral Resources fell by nearly 1 percent. BHP Group saw a modest rise of 0.2 percent.
Oil stocks faced downward pressure, with Origin Energy slipping 0.2 percent and both Woodside Energy and Santos dropping nearly 1 percent each. However, Beach Energy bucked the trend, gaining over 1 percent.
Technology stocks witnessed growth, with Block (owner of Afterpay) rising nearly 1 percent and Appen increasing by 0.5 percent. WiseTech Global, Xero, and Zip each posted gains exceeding 1 percent.
The performance of gold miners was mixed. Gold Road Resources climbed almost 2 percent, Evolution Mining edged up 0.5 percent, and Resolute Mining gained nearly 1 percent. Conversely, Northern Star Resources and Newmont each declined by about 0.5 percent.
Among the prominent banks, Commonwealth Bank and ANZ Banking each rose more than 1 percent, while Westpac added nearly 1 percent, and National Australia Bank advanced almost 2 percent.
Elsewhere, Karoon Energy shares plunged more than 7 percent after the company revised its production outlook. Data#3 shares dropped almost 10 percent following updates on its Australian partnership with Microsoft, affecting revenue incentives. On a positive note, Novonix Ltd. shares surged almost 7 percent after securing a conditional US$755 million loan from the U.S. Department of Energy.
In the currency markets, the Australian dollar was trading at $0.637 on Monday.
Japan’s stock market showed a moderate recovery on Tuesday, reversing losses from the previous two sessions. The Nikkei 225 moved above the 39,500 threshold, influenced by overnight Wall Street performance and gains in key stocks and exporters.
The Nikkei 225 Index concluded the morning session at 39,520.06, marking an increase of 62.57 points or 0.16 percent, having reached a high of 39,796.22 earlier. Japanese shares had ended slightly lower on Monday.
Among market heavyweights, SoftBank Group surged nearly 3 percent, and Fast Retailing (operator of Uniqlo) added almost 1 percent. In the automotive sector, Honda was up 0.5 percent, whereas Toyota dipped by 0.1 percent.
Technology firms such as Advantest, Tokyo Electron, and Screen Holdings saw minor declines ranging from 0.1 to 0.5 percent.
In banking, Mitsubishi UFJ Financial and Sumitomo Mitsui Financial each fell by about 1 percent, while Mizuho Financial rose nearly 1 percent.
Leading exporters mostly gained, with Panasonic and Sony up nearly 1 percent each. However, Mitsubishi Electric dropped almost 1 percent, and Canon edged down by 0.3 percent.
Prominent gainers included Japan Steel Works, surging nearly 5 percent, while DeNA, IHI, and Sumitomo Realty & Development advanced over 4 percent each. Nintendo climbed more than 3 percent, joined by BANDAI NAMCO, Keisei Electric Railway, Chugai Pharmaceutical, Mitsubishi Heavy Industries, and Konami Group, all gaining nearly 3 percent.
Conversely, there were no major losers noted.
In foreign exchange, the U.S. dollar was trading in the higher 153 yen range on Tuesday.
Across other Asian markets, China, Hong Kong, Singapore, South Korea, Malaysia, and Indonesia each experienced declines between 0.2 and 0.8 percent. Meanwhile, New Zealand and Taiwan saw gains of 0.4 percent each.
On Wall Street, stocks largely moved upward on Monday, recovering from the tepid performance of last Friday’s session. The tech-centric Nasdaq led this upward momentum, reaching a new record closing high.The Nasdaq experienced a slight retreat from its peak levels as it approached the market close, yet still managed to finish the day with an increase of 247.17 points, or 1.2%, reaching 20,173.89. In parallel, the S&P 500 rose by 22.99 points, or 0.4%, to settle at 6,074.08. Contrarily, the Dow diverged from this upward trend, dropping 110.58 points, or 0.3%, to close at 43,717.48.
In contrast, the European markets registered declines for the day. The French CAC 40 Index fell by 0.7%, while both the German DAX Index and the U.K.'s FTSE 100 Index decreased by 0.5%.
On Monday, crude oil prices declined due to concerns over demand projections, influenced by dismal economic data from China and potential tariff implications. West Texas Intermediate Crude oil futures for January settled at $70.71 per barrel, marking a decrease of $0.58.
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