Mirroring the mixed cues from Wall Street overnight, Asian stock markets are also trading mixed on Thursday, as traders reacted to the US dollar’s continued strength against major Asian currencies and the jump in crude oil prices to one-year highs. Rising concerns about interest rates and the outlook for global economic growth also weigh on the markets. Asian markets closed mixed on Wednesday.
The Australian market is back in the red after treading briefly in the green on Thursday, extending losses in the previous three sessions and following mixed cues from Wall Street overnight. The benchmark S&P/ASX 200 remains above the 7,000 mark, with gains in iron ore miner and energy stocks more than offset by losses in gold miner stocks.
The S&P/ASX 200 Index is losing 3.70 points, or 0.05 percent, to 7,026.60, after hitting a low of 7,007.20 earlier. The broader All Ordinaries Index is down 5.70 points, or 0.08 percent, to 7,224.10. Australian stocks ended slightly lower on Wednesday.
Among major miners, BHP Group and Rio Tinto are gaining almost 1 percent each, while Fortescue Metals and Mineral Resources are adding more than 1 percent each. Oil stocks are mostly higher, with Santos and Woodside Energy gaining nearly 2 percent each, and Beach Energy adding more than 3 percent. Origin Energy is edging down 0.4 percent.
In the tech sector, Afterpay owner Block is losing more than 1 percent, and WiseTech Global is down 0.5 percent, while Appen is gaining more than 1 percent and Xero is edging up 0.5 percent. Zip is flat.
Among the big four banks, Commonwealth Bank, Westpac, and National Australia Bank are edging down 0.1 to 0.4 percent each, while ANZ Banking is gaining more than 1 percent.
Gold miners are mostly under pressure; Newcrest Mining is declining more than 4 percent, Northern Star Resources is losing over 1 percent, Evolution Mining is slipping almost 2 percent, and Gold Road Resources is down 1.5 percent. However, Resolute Mining is gaining 1.5 percent.
In currency markets, the Australian dollar is trading at $0.637 on Thursday.
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In Japan, the market pared gains from the previous session and is trading sharply lower on Thursday following mixed cues from Wall Street overnight. The Nikkei 225 fell below the 31,900 level, with losses in index heavyweights and technology stocks partially offset by gains in financial stocks.
The benchmark Nikkei 225 Index closed the morning session at 31,813.01, down 558.89 points, or 1.73 percent, after hitting a low of 31,797.38 earlier. Japanese stocks closed modestly higher on Wednesday.
Market heavyweight SoftBank Group is losing almost 1 percent, and Uniqlo operator Fast Retailing is also down nearly 1 percent. Among automakers, Toyota is edging down 0.1 percent, while Honda is up 0.4 percent.
In the tech space, Advantest is up 0.3 percent, while Tokyo Electron is down almost 1 percent, and Screen Holdings is declining nearly 2 percent.
In the banking sector, Mitsubishi UFJ Financial and Mizuho Financial are gaining nearly 1 percent each, while Sumitomo Mitsui Financial is edging up 0.3 percent.
Among the major exporters, Panasonic is gaining 1.5 percent, and Canon is adding over 1 percent, while Sony is edging down 0.3 percent, and Mitsubishi Electric is slipping almost 1 percent.
Other notable movers include ANA Holdings, down more than 3 percent, and Keio, declining almost 3 percent. Conversely, Chugai Pharmaceutical surged more than 5 percent, while Mitsui E&S, Mitsubishi Motors, and Kawasaki Kisen Kaisha are each gaining nearly 5 percent. Inpex is up almost 4 percent, Kobe Steel more than 3 percent, and JGC Holdings, Sumitomo Heavy Industries, and Nippon Steel are advancing around 3 percent each.
In currency markets, the US dollar is trading in the lower 149 yen range on Thursday.
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Elsewhere in Asia, markets in China, Taiwan, and Indonesia are higher by between 0.1 and 0.2 percent each, while New Zealand, Hong Kong, and Malaysia are lower by between 0.4 and 1.0 percent. Singapore is relatively flat. South Korea is closed for the Chuseok Festival.
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On Wall Street, stocks saw substantial volatility throughout Wednesday’s trading session following Tuesday’s sell-off. Major averages swung wildly back and forth across the unchanged line and eventually ended the day narrowly mixed.
The Dow slipped 68.61 points, or 0.2 percent, to a new three-month closing low of 33,550.27. Meanwhile, the S&P 500 crept up 0.98 points, or less than 0.1 percent, to 4,274.51, and the Nasdaq rose 29.24 points, or 0.2 percent, to 13,092.85.
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In Europe, major markets moved downward. The French CAC 40 Index closed just below the unchanged line, while the German DAX Index and the UK’s FTSE 100 Index fell 0.3 percent and 0.4 percent, respectively.
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Crude oil futures rose sharply on Wednesday after data showed an unexpected drop in US crude stockpiles in the week ended September 22. The decline added to concerns about tightening supplies amid production cuts by OPEC and its allies.
West Texas Intermediate (WTI) crude oil futures for November climbed $3.29, or about 3.6 percent, to settle at $93.68 a barrel—the highest settlement since August 29, 2022.
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*The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.*
https://www.nasdaq.com/articles/asian-markets-trade-mixed-9