(RTTNews) – Asian stock markets are trading mixed on Tuesday following positive signals from Wall Street overnight, amid optimism about the outlook for interest rates after the US Fed’s latest projections pointed to three rate cuts early next year. However, several Fed officials have subsequently pushed back on investor hopes that interest rate cuts by the central bank are imminent. Asian markets closed mostly lower on Monday.
Markets are awaiting the release of the US inflation report later this week for more clarity on the Fed’s interest rate path and economic outlook.
The Australian stock market has pared losses from the previous session and is significantly higher on Tuesday following largely positive signals from Wall Street overnight. The benchmark S&P/ASX 200 remains well above the 7,400 level, with gains across most sectors, led by mining and energy stocks.
The benchmark S&P/ASX 200 Index gains 58.60 points or 0.79 percent to 7,485.00, after earlier reaching a high of 7,492.10. The broader All Ordinaries Index rose 60.60 points or 0.79 percent to 7,710.20. Australian shares closed modestly lower on Monday.
Among the major mining companies, BHP Group and Rio Tinto are each rising 0.1 to 0.4 percent, while Fortescue Metals and Mineral Resources are each gaining more than 1 percent.
Oil stocks are usually higher. Woodside Energy gains more than 1 percent, Beach Energy grows by more than 2 percent, Santos goes up 0.3 percent and Origin Energy adds almost 2 percent.
Among technology stocks, WiseTech Global gains almost 1 percent and Xero more than 1 percent, while Appen falls more than 2 percent, Zip falls almost 3 percent and Afterpay owner Block falls 0.3 percent.
Gold diggers tend to be higher. Northern Star resources are up 1.5 percent and Gold Road Resources is up almost 1 percent, while Evolution Mining and Newmont are adding almost 1 percent each. Resolute Mining is flat.
Of the big four banks, Commonwealth Bank and National Australia Bank gain almost 1 percent each, while Westpac and ANZ Banking are up 0.4 percent each.
In other news, shares in G8 Education rise by almost 12 percent after the childcare organization showed clear improvement in the second half of 2023 despite cost discipline.
In economic news, the Reserve Bank of Australia will release the minutes of its December 5 meeting on Tuesday. At the meeting, the RBA policy board decided to maintain the cash rate target at 4.35 percent. The board also maintained the interest rate paid on the exchange settlement balances at 4.25 percent. At its November meeting, the bank had raised rates by 25 basis points to a 12-year high, ending a four-session lull.
On the foreign exchange market, the Australian dollar is trading at $0.672 on Tuesday.
After reversing losses from the previous session, Japan’s stock market is slightly higher on Tuesday, with the Nikkei 225 moving towards the 32,800 level following largely positive signals from Wall Street overnight, as traders move cautiously waiting for details on the Bank of Japan’s rate. last monetary policy meeting of the year.
There is speculation that the BoJ could change its forward guidance on interest rates or signal policy changes. Most economists expect the BOJ to end negative interest rates by the end of next year.
The benchmark Nikkei 225 Index closed the morning session at 32,799.78, up 40.80 points or 0.12 percent, after earlier hitting a low of 32,654.43 and a high of 32,840.27. Japanese shares closed significantly lower on Monday.
Market heavyweight SoftBank Group is down 0.5 percent, while Uniqlo operator Fast Retailing is up 0.4 percent. Among car manufacturers, Honda fell by 0.4 percent and Toyota by almost 1 percent.
In the technological field, Advantest rose by 0.4 percent, Tokyo Electron by more than 1 percent and Screen Holdings by almost 3 percent.
In the banking sector, Sumitomo Mitsui Financial is up 0.2 percent, while Mitsubishi UFJ Financial is down almost 1 percent and Mizuho Financial is down 0.3 percent.
The major exporters are often lower. Panasonic loses almost 2 percent, while Sony and Mitsubishi Electric each fall more than 1 percent. Canon wins more than 1 percent.
Of the other big losers, Nippon Steel loses 4.5 percent and Central Japan Railway loses more than 3 percent.
Conversely, Lasertec and NH Foods each gain almost 3 percent.
In other news, Nippon Steel shares gain nearly 4 percent on news it would acquire US Steel for $14.9 billion.
In the foreign exchange market, the US dollar is trading in the higher range of 143 yen on Tuesday.
Elsewhere in Asia, Hong Kong, South Korea and Taiwan are each between 0.1 and 0.6 percent lower, while China, Singapore and Indonesia are each between 0.1 and 0.2 percent higher. New Zealand and Malaysia are relatively flat.
On Wall Street, stocks moved mostly higher over the course of Monday’s trading session, adding to last week’s strong gains. The Nasdaq and S&P 500 climbed solidly into positive territory, although the narrower Dow Jones was little changed at the end of the day.
While the Dow Jones index rose 0.86 points, or less than a tenth of a percent, to 37,306.02, the Nasdaq rose 21.37 points, or 0.5 percent, to 4,740.56 and the S&P 500 rose 90.89 points or 0.6 percent to 14,904.81.
Meanwhile, major European markets posted mixed performances on the day. While the British FTSE 100 Index rose 0.5 percent, the French CAC 40 Index fell 0.4 percent and the German DAX Index fell 0.6 percent.
Crude oil prices rose sharply on Monday as tensions rise in the Middle East following recent attacks on ships crossing the Red Sea, raising supply concerns. West Texas Intermediate crude futures ended January higher by $1.04, or 1.44 percent, at $72.47 a barrel.
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