Asian Markets Mostly Lower Amid Cautious Trades

Asian stock markets are trading mostly lower on Wednesday, following the mixed cues from Wall Street overnight, as traders remain cautious ahead of the US Fed’s most anticipated monetary policy decision in years later in the day. Uncertainty about the size of interest-rate reduction is weighing on market sentiment after a report unexpectedly showed a modest increase by U.S. retail sales in the month of August. Asian markets closed mixed on Tuesday.

While the data is positive for the economy, it was seen as reducing the likelihood the US Fed lowering interest rates by 50 basis points. Irrespective of the size of the cut later in the day, the Fed is still expected to continue lowering rates over the remainder of the year.

Australian shares are trading slightly lower on Wednesday, snapping a four-session winning streak, with the benchmark S&P/ASX 200 retreating after closing at all-time highs in the previous session, following the mixed cues from Wall Street overnight, with slight weakness in mining and energy stocks.

The benchmark S&P/ASX 200 Index is losing 6.30 points or 0.08 percent to 8,134.60, after hitting a low of 8,114.10 earlier. The broader All Ordinaries Index is down 4.00 points or 0.05 percent to 8,357.20. Australian stocks ended modestly higher on Tuesday.

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

Oil stocks are mostly higher. Origin Energy is gaining more than 2 percent and Beach energy is adding almost 1 percent, while Woodside Energy and Santos are edging up 0.1 to 0.4 percent each.

In the tech space, Afterpay owner Block is gaining more than 2 percent and Appen is adding more than 1 percent, while WiseTech Global, Xero and Zip are edging down 0.1 to 0.5 percent each.

Among the big four banks, Commonwealth Bank, ANZ Banking and Westpac are edging up 0.2 to 0.5 percent each, while National Australia Bank is gaining almost 1 percent.

Among gold miners, Northern Star Resources is edging down 0.4 percent and Gold Road Resources is declining almost 2 percent, while Newmont is gaining almost 1 percent and Evolution Mining is adding more than 1 percent. Resolute Mining is flat.

In the currency market, the Aussie dollar is trading at $0.676 on Wednesday.

The Japanese stock market is trading significantly higher on Wednesday, recouping some of the losses in the previous two sessions, following the mixed cues from Wall Street overnight. The Nikkei 225 is moving above the 36,400 level, with gains across most sectors led by index heavyweights, financial and technology stocks.

The benchmark Nikkei 225 Index closed the morning session at 36,461.44, up 258.22 points or 0.71 percent, after touching a high of 36,675.07 earlier. Japanese stocks ended significantly lower on Tuesday.

Market heavyweight SoftBank Group is gaining 1 percent and Uniqlo operator Fast Retailing is adding more than 2 percent. Among automakers, Honda is gaining almost 2 percent and Toyota is advancing almost 3 percent.

In the tech space, Advantest is gaining more than 1 percent, Screen Holdings is adding almost 2 percent and Tokyo Electron is edging up 0.2 percent.

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

Among the major exporters, Canon is edging up 0.3 percent and Panasonic is gaining more than 1 percent, while Sony is edging down 0.2 percent and Mitsubishi Electric is declining almost 1 percent.

Among other major gainers, M3 is surging more than 5 percent, while Credit Saison and Sumco are gaining almost 4 percent each. Mazda Motor, Kubota, Mercari and Dowa Holdings are gaining more than 3 percent each. T&D Holdings, Sumitomo Metal Mining, Furukawa Electric and Hino Motors are advancing almost 3 percent each.

Conversely, Mitsubishi Heavy Industries is declining almost 4 percent and IHI is losing more than 3 percent.

In economic news, Japan posted a merchandise trade deficit of 695.3 billion yen in August, the Ministry of Finance said on Wednesday. That beat forecasts for a shortfall of 1,380 trillion yen following the 628.7 billion yen deficit in July. Exports were up 5.6 percent on year, shy of expectations for an increase of 10.0 percent and slowing from the 10.2 percent gain in the previous month. Imports rose an annual 2.3 percent versus forecasts for a jump of 13.4 percent and down from 16.6 percent a month earlier.

In the currency market, the U.S. dollar is trading in the lower 141 yen-range on Wednesday.

Elsewhere in Asia, New Zealand, Singapore, Malaysia and Taiwan are lower by between 0.2 and 0.3 percent each. Indonesia and China are up 0.3 and 0.1 percent, respectively. South Korea is closed for Chuseok Thanksgiving Day) and Hong Kong is closed for Mid-Autumn Festival.

On the Wall Street, stocks gave back ground over the course of the trading day on Tuesday after moving mostly higher early in the session. The Dow and the S&P 500 reached new record intraday highs in early trading but subsequently pulled back near the unchanged line.

The major averages ended the day narrowly mixed. While the Dow edged down 15.90 points or less than a tenth of a percent to 41,606.18, the S&P 500 inched up 1.49 points or less than a tenth of a percent to 5,634.58 and the Nasdaq rose 35.93 points or 0.2 percent to 17,628.06.

Meanwhile, the major European markets all moved higher on the day. While the U.K.’s FTSE 100 Index rose by 0.4 percent, the German Index and the French CAC 40 Index both climbed by 0.5 percent.

Crude oil prices climbed higher on Tuesday as concerns about tight supply in the market offset continued uncertainty about the outlook for demand from China. West Texas Intermediate Crude oil futures for October ended higher by $1.10 or 1.5 percent at $71.19 a barrel.