Asian Markets Mostly Lower

Asian stock markets are mostly lower on Tuesday, despite the broadly positive cues from Wall Street overnight, as traders remain cautious ahead of the monetary policy announcements by the Reserve Bank of Australia and the Bank of Japan. They also await the US Fed’s monetary policy announcement on Wednesday for clues about the outlook for interest rates. Asian markets closed mostly higher on Monday.

The Fed is widely expected to leave interest rates unchanged after recent inflation readings have reduced optimism about a rate cut in June. However, the focus will be on the central bank’s accompanying statements and economic projections, which could have a significant impact on the outlook for rates.

The Bank of England and the Swiss National Bank are also scheduled to make their monetary policy announcements later in the week.

Extending the slight gains in the previous session, the Australian stock market is marginally higher in choppy trading on Tuesday, following the broadly positive cues from Wall Street overnight. The benchmark S&P/ASX 200 is staying just below the 7,700 level, with gains across most sectors led by mining and energy stocks amid spiking commodity prices.

The benchmark S&P/ASX 200 Index is gaining 9.80 points or 0.13 percent to 7,685.60, after touching a high of 7,690.30 and a low of 7,666.90 earlier. The broader All Ordinaries Index is up 13.20 points or 0.17 percent to 7,938.40. Australian stocks closed slightly higher on Monday.

Among the major miners, Rio Tinto and BHP Group are adding almost 1 percent each, while Fortescue Metals is gaining more than 1 percent and Mineral Resources is advancing more than 2 percent.

Oil stocks are higher. Origin Energy and Woodside Energy are gaining almost 1 percent each, while Beach energy is adding more than 2 percent and Santos is advancing more than 1 percent.

Among tech stocks, Afterpay owner Block and WiseTech Global are edging down 0.5 percent each, while Xero is slipping more than 1 percent and Appen is declining more than 2 percent. Zip is gaining 1.5 percent.

Gold miners are higher. Evolution Mining and Gold Road Resources are gaining almost 1 percent each, while Newmont is advancing almost 3 percent, Northern Star resources is adding more than 1 percent and Resolute Mining is rising more than 3 percent.

Among the big four banks, Commonwealth Bank, Westpac and National Australia Bank are edging down 0.1 to 0.5 percent each, while ANZ Banking is flat.

In economic news, the Reserve Bank of Australia will wrap up its monetary policy meeting on Tuesday and then announce its decision on interest rates. The RBA is widely expected to keep its benchmark lending rate unchanged at 4.35 percent.

In the currency market, the Aussie dollar is trading at $0.656 on Tuesday.

Giving up some of the strong gains in the previous session, the Japanese stock market is notably lower on Tuesday, with the Nikkei 225 falling below the 39,600 level, despite the broadly positive cues from Wall Street overnight, with losses in index heavyweights and technology stocks as investors braced for a BOJ policy shift when the central bank makes its policy announcement later in the day.

The central bank is widely expected to end its negative interest rates and yield curve control policies after this year’s spring wage negotiations involving major Japanese firms delivered robust pay increases.

The benchmark Nikkei 225 Index closed the morning session at 39,596.29, down 144.15 points or 0.36 percent, after hitting a low of 39,407.50 earlier. Japanese shares ended sharply higher on Monday.

Market heavyweight SoftBank Group is losing almost 1 percent and Uniqlo operator Fast Retailing is declining almost 2 percent. Among automakers, Honda is edging down 0.1 percent, while Toyota is edging up 0.4 percent.

In the tech space, Advantest is declining more than 2 percent and Screen Holdings is edging down 0.5 percent, while Tokyo Electron is edging up 0.3 percent.

In the banking sector, Sumitomo Mitsui Financial and Mizuho Financial are gaining almost 1 percent each, while Mitsubishi UFJ Financial is edging up 0.3 percent.

The major exporters are mixed. Panasonic and Mitsubishi Electric are edging up 0.4 to 0.5 percent each, while Canon and Sony are edging down 0.2 to 0.3 percent each.

Among the other major losers, Terumo and Chugai Pharmaceutical are losing more than 3 percent each, while Toppan Holdings, Eisai and Tokyo Electric Power are declining almost 3 percent each.
Advantest Corp.

Conversely, Sumitomo Realty & Development is gaining more than 4 percent, while Nidec and Inpex are adding almost 3 percent each.

In the currency market, the U.S. dollar is trading in the lower 149 yen-range on Tuesday.

Elsewhere in Asia, South Korea is down 1.2 percent, while China, Hong Kong, Malaysia and Taiwan are lower by between 0.1 and 0.6 percent each. New Zealand, Singapore and Indonesia are higher by between 0.1 and 0.6 percent each.

On Wall Street, stocks gave back some ground over the course of the trading day on Monday after showing a strong move to the upside early in the session, but managed to close mostly higher. With the upward move, the Nasdaq and the S&P 500 regained ground after closing lower for three straight sessions.

While the major averages came under pressure going into the close, they managed to end the day in positive territory. The Nasdaq advanced 130.27 points or 0.8 percent at 16,103.45, the S&P 500 climbed 32.33 points or 0.6 percent to 5,149.42 and the Dow rose 75.66 points or 0.2 percent at 38,790.43.

Meanwhile, the major European markets moved modestly lower on the day. While the French CAC 40 Index dipped by 0.2 percent, the U.K.’s FTSE 100 Index edged down by 0.1 percent and the German DAX Index closed just below the unchanged line.

Crude oil prices moved higher Monday amid concerns about supply due to geopolitical risks following continued drone attacks by Ukraine on Russian oil refineries, as well as data showing a drop in crude exports from Iraq and Saudi Arabia. West Texas Intermediate Crude oil futures for April jumped $1.68 or 2.1 percent at $82.72 a barrel.