Asian Markets Trading Mixed

Asian stock markets are trading mixed on Tuesday, following the broadly positive cues from global markets overnight, as traders looked to pick up stocks at reduced levels following the steep drop seen last week while they await key inflation data from the U.S. that could impact the outlook for rates. Meanwhile, lingering concerns about the outlook for the U.S. economy is weighing on market sentiment. Asian markets closed mostly higher on Monday.

The data is expected to show a slowdown in the annual rate of consumer price growth, but acceleration in the annual rate of producer price growth. While the Fed is almost universally expected to begin lowering interest rates later this month, the data could impact expectations about the pace of rate cuts.

The CME Group’s FedWatch Tool is currently indicating a 71 percent chance the Fed will lower rates by 25 basis points and a 29 percent chance of a 50 basis point rate cut.

Reversing the losses in the previous session, the Australian stock market is trading notably higher on Tuesday, following the broadly positive cues from global markets overnight. The benchmark S&P/ASX 200 is moving above the 8,000 mark, with gains across most sectors led by mining and energy stocks amid spiking commodity prices.

The benchmark S&P/ASX 200 Index is gaining 52.40 points or 0.66 percent to 8,040.50, after touching a high of 8,057.90 earlier. The broader All Ordinaries Index is up 50.90 points or 0.62 percent to 8,242.80. Australian stocks closed modestly lower on Monday.

Among the major miners, BHP Group and Fortescue Metals are adding almost 1 percent each, while Rio Tinto is gaining more than 1 percent and Mineral Resources is edging up 0.5 percent.

Oil stocks are mostly higher. Origin Energy and Beach energy are adding almost 1 percent each, while Woodside Energy is edging up 0.5 percent. Santos is edging down 0.3 percent.

Among tech stocks, Appen and WiseTech Global are gaining more than 1 percent each, while Zip and Xero are edging up 0.3 to 0.5 percent each. Afterpay owner Block is flat.

Gold miners are mostly higher. Gold Road Resources and Evolution Mining are edging up 0.3 to 0.4 percent each, while Newmont and Resolute Mining are gaining almost 2 percent each. Northern Star resources is adding almost 1 percent.

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

In the currency market, the Aussie dollar is trading at $0.666 on Tuesday.

Rebounding from the losses in the previous five sessions, the Japanese stock market is notably higher on Tuesday, snapping a five-session winning streak, with the Nikkei 225 moving up to be a tad below the 36,400 level, following the broadly positive cues from global markets overnight, with gains across all the sectors led by index heavyweights and technology stocks.

The benchmark Nikkei 225 Index closed the morning session at 36,244.22, up 28.47 points or 0.08 percent, after touching a high of 36,537.03 earlier. Japanese shares ended significantly lower on Monday.

Market heavyweight SoftBank Group is gaining more than 2 percent and Uniqlo operator Fast Retailing is flat. Among automakers, Honda is edging down 0.1percent and Toyota is gaining more than 1 percent.

In the tech space, Advantest and are gaining more than 1 percent each, Screen Holdings is advancing more than 3 percent and Tokyo Electron is adding almost 4 percent.

In the banking sector, Mitsubishi UFJ Financial and Mizuho Financial are gaining more than 2 percent each, while Sumitomo Mitsui Financial is adding almost 3 percent.

The major exporters are mostly higher. Canon is adding almost 1 percent and Sony is gaining more than 2 percent, while Mitsubishi Electric is losing almost 1 percent. Panasonic is flat.

Among the other major gainers, Socionext and Ebara are gaining more than 3 percent each, while Konami Group, Credit Saison, Furukawa Electric, Keisei Electric Railway, Fujikura, Mitsui Mining & Smelting and Sumitomo Mitsui Trust are adding almost 3 percent each.

Conversely, Daiichi Sankyo is plunging almost 8 percent.

In the currency market, the U.S. dollar is trading in the lower 143 yen-range on Tuesday.

Elsewhere in Asia, New Zealand, South Korea, Malaysia and Indonesia are higher by between 0.2 and 0.3 percent each. China and Hong Kong are down 0.4 and 0.2 percent, respectively. Taiwan and Singapore are flat.

On Wall Street, stocks showed a strong move back to the upside during trading on Monday following the sell-off seen in the previous week. The major averages all moved sharply higher over the course of the session.

The major averages pulled back off their highs of the session in afternoon trading but remained firmly positive. The Dow surged 484.18 points or 1.2 percent to 40,829.59, the Nasdaq jumped 193.77 points or 1.2 percent to 16,884.60 and the S&P 500 shot up 62.63 points or 1.2 percent to 5,471.05.

The major European markets also moved to the upside on the day. While the U.K.’s FTSE 100 Index shot up by 1.1 percent, the French CAC 40 Index jumped by 1.0 percent and the German DAX Index advanced by 0.8 percent.

Crude oil prices climbed higher Monday on the possibility of weather-related production issues in the the Gulf of Mexico, and on OPEC’s decision to delay a production boost originally scheduled to begin in October. West Texas Intermediate Crude oil futures for October ended up by $1.04 or 1.54 percent at $68.71 a barrel.