Asian Markets Trade Mixed

Asian stock markets are trading mixed on Monday, following the mixed cues from global markets on Friday, with some traders looking to cash in on the recent strength in the markets. Traders also remained optimistic about the outlook for interest rates following the US Fed’s monetary policy announcement last week. Asian markets closed mixed on Friday.

While the timing of the first rate remains somewhat uncertain, the chances of a quarter point rate cut in June have rebounded. The Fed had maintained its forecast for three interest rate cuts this year.

The Australian stock market is currently trading significantly higher on Monday, recouping the losses in the previous session, with the benchmark S&P/ASX 200 moving above the 7,800.00 level, following the mixed cues from global markets on Friday, with gains across most sectors led by mining and energy stocks amid firmer commodity prices.

The benchmark S&P/ASX 200 Index is gaining 44.00 points or 0.57 percent to 7,814.60, after touching a high of 7,844.40 earlier. The broader All Ordinaries Index is up 47.40 points or 0.59 percent to 8,073.70. Australian stocks closed modestly lower on Friday.

Among the major miners, Rio Tinto, BHP Group and Mineral Resources are gaining more than 1 percent each, while Fortescue Metals is surging more than 4 percent.

Oil stocks are mostly higher. Beach energy is gaining more than 1 percent and Origin Energy is edging up 0.2 percent, while Santos and Woodside Energy are adding almost 1 percent each.

Among tech stocks, Xero is gaining almost 2 percent, Appen is adding almost 4 percent and WiseTech Global is up more than 1 percent, while Afterpay owner Block and Zip are losing more than 2 percent each.

Gold miners are mostly higher. Gold Road Resources and Evolution Mining are edging up 0.2 to 0.3 percent each, while Newmont and Northern Star Resources are losing more than 1 percent each. Resolute Mining is gaining almost 1 percent.

Among the big four banks, Commonwealth Bank, ANZ Banking and Westpac are gaining almost 1 percent each, while National Australia Bank is edging up 0.1 percent.

In other news, shares in McGrath are soaring 24 percent after the board of the real estate company backed a takeover offer from Knight Frank and Bayleys.

Shares in MMA Offshore are surging 10 percent after the oil and gas company received a takeover offer from Seraya Partners subsidiary Cyan Renewables.

Scrap metal recycler Sims is 4.5 per cent higher at $12.43 following a note from UBS that suggested the company was likely to sell its UK metals unit for above book value.

In the currency market, the Aussie dollar is trading at $0.654 on Monday.

The Japanese stock market is trading significantly lower on Monday, snapping the four-session winning streak. The benchmark Nikkei 225 is falling below the 40,600 level, following the mixed cues from global markets on Friday, with weakness across most sectors led by exporters and financial stocks.

The benchmark Nikkei 225 Index closed the morning session at 40,621.24, down 267.19 points or 0.65 percent, after hitting a low of 40,568.77 earlier. Japanese shares ended modestly higher on Friday.

Market heavyweight SoftBank Group is edging up 0.1 percent, while Uniqlo operator Fast Retailing is edging down 0.3 percent. Among automakers, Honda is losing more than 1 percent and Toyota is down almost 1 percent.

In the tech space, Screen Holdings is edging down 0.5 percent and Tokyo Electron is losing almost 1 percent, while Advantest is advancing more than 3 percent.

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

The major exporters are higher. Canon and Mitsubishi Electric are losing almost 1 percent each, while Panasonic is declining almost 2 percent and Sony is slipping more than 2 percent.

Among other major losers, Sharp is losing almost 4 percent, while Fujitsu, Olympus, Secom and NEXON are declining more than 3 percent each. Mitsui Fudosan, Sumitomo Realty & Development, DeNA and Hoya are down almost 3 percent each.

Conversely, Japan Steel Works is gaining almost 4 percent and Fujikura is adding almost 3 percent.

In economic news, members of the Bank of Japan’s Monetary Policy Board said that Japan’s economy is trending upward and should continue to do so in the short term, minutes from the central bank’s January 22 monetary policy meeting revealed on Monday.

At the meeting, the central bank left its massive monetary stimulus unchanged at -0.1 percent and downgraded its inflation outlook for the next fiscal year. The bank will also continue to purchase a necessary amount of Japanese government bonds without setting an upper limit so that 10-year JGB yields will remain at around zero percent.

Overall inflation is likely to be above 2 percent through fiscal 2024, although it may slow down in fiscal 2025, the members said – although they vowed to continue with easing as long as necessary to reach price stability.

In the Outlook for Economic Activity and Prices, the central bank said consumer prices will remain above 2 percent through the fiscal 2024. The bank lowered its fiscal 2024 core inflation outlook to 2.4 percent from 2.8 percent and the projection for the fiscal 2025 was lifted to 1.8 percent from 1.7 percent.

The real economic growth forecast for the fiscal 2024 was lifted to 1.2 percent from 1.0 percent and the estimate for the fiscal 2025 was retained at 1.0 percent.

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

Elsewhere in Asia, Singapore, South Korea, Malaysia and Indonesia are lower by between 0.2 and 0.6 percent each, while New Zealand, China, Hong Kong are higher by between 0.1 and 0.8 percent each. Taiwan is relatively flat.

On Wall Street, stocks turned in a relatively lackluster performance during trading on Friday after trending higher over the past several sessions. The major averages fluctuated over the course of the session before eventually ending the day mixed.

While the Nasdaq inched up 26.98 points or 0.2 percent to a new record closing high of 16,428.82, the S&P 500 edged down 7.35 points or 0.1 percent to 5,234.18 and the Dow slid 305.47 points or 0.8 percent to 39,475.90.

The major European markets also finished the day mixed. While the French CAC 40 Index fell by 0.3percent, the German DAX Index inched up by 0.2 percent and the U.K.’s FTSE 100 Index climbed by 0.6 percent.

Crude oil prices fell on Friday, as the dollar rose sharply with the Federal Reserve set to hold interest rates higher for now. West Texas Intermediate Crude oil futures for May ended lower by $0.44 at $80.63 a barrel.