Asian Markets Trade Mostly Higher

Asian stock markets are trading mostly higher on Friday, despite the broadly negative cues from Wall Street overnight, as data showing the bigger-than-expected increase in US consumer prices further offset optimism the US Fed will continue to aggressively lower interest rates in the coming months. China is also falling as the markets await potential fiscal stimulus announcements on Saturday. Asian markets ended mostly higher on Thursday.

Following the data, Atlanta Fed President Raphael Bostic told the Wall Street Journal he was “definitely open” to leaving interest rates unchanged in November.

CME Group’s FedWatch Tool is currently indicating an 84.0 percent chance the Fed will lower rates by 25 basis points next month after slashing rates by 50 basis points last month.

The Australian stock market is modestly lower in choppy trading on Friday, reversing the gains in the previous two sessions, following the broadly negative cues from Wall Street overnight. The benchmark S&P/ASX 200 is falling to near the 8,200 level, with weakness in iron ore miners and financial stocks partially offset by gains in gold miners, technology and energy stocks amid spike in crude oil and bullion prices.

The benchmark S&P/ASX 200 Index is losing 10.60 points or 0.13 percent to 8,212.40, after hitting a low of 8,200.00 earlier. The broader All Ordinaries Index is down 8.40 points or 0.10 percent to 8,490.30. Australian markets ended modestly higher on Thursday.

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

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

Among tech stocks, Afterpay owner Block is advancing more than 3 percent, while Xero and Zip are adding almost 1 percent. WiseTech Global is declining almost 1 percent. Appen is flat.

Among the big four banks, Commonwealth Bank is losing almost 1 percent, while National Australia Bank, ANZ Banking and Westpac are edging down 0.2 to 0.4 percent each.

Gold miners are mostly higher. Evolution Mining, Newmont and Northern Star Resources are gaining almost 2 percent each, while Resolute Mining is advancing more than 3 percent and Gold Road Resources is adding more than 2 percent.

In the currency market, the Aussie dollar is trading at $0.674 on Friday.

Extending the gains in the previous two sessions, the Japanese stock market is notably higher on Friday, despite the broadly negative cues from Wall Street overnight. The benchmark Nikkei 225 is moving above the 39,600 level, with gains across most sectors led by index heavyweights and financial stocks.

The benchmark Nikkei 225 Index closed the morning session at 39,612.82, up 231.93 points or 0.59 percent, after touching a high of 39,662.42 earlier. Japanese stocks closed modestly higher on Thursday.

Market heavyweight SoftBank Group is losing almost 1 percent, while Uniqlo operator Fast Retailing is gaining more than 3 percent. Among automakers, Honda is gaining almost 1 percent and Toyota is edging up 0.5 percent.

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

In the banking sector, Mitsubishi UFJ Financial and Mizuho Financial are gaining 1.5 percent, while Sumitomo Mitsui Financial is adding more than 2 percent.

Among major exporters, Mitsubishi Electric and Canon are losing almost 1 percent each, while Sony is more than 1 percent and Panasonic is edging up 0.4 percent.

Among other major gainers, Fujikura is adding more than 3 percent, while Dai-ichi Life Holdings and Chugai Pharmaceutical are advancing almost 3 percent each.

Conversely, there are no other major losers.

In economic news, the M2 money stock in Japan was up 1.3 percent on year in September, the Bank of Japan said on Friday – coming in at 1,252.0 trillion yen. That was unchanged from the August reading, although shy of forecasts for 1.5 percent. On a monthly basis, M2 was up 1.0 percent – accelerating from 0.6 percent in the previous month.

In the currency market, the U.S. dollar is trading in the higher 148 yen-range on Friday.

Elsewhere in Asia, Taiwan is up 1.2 percent, while New Zealand, Singapore, South Korea and Indonesia are higher by between 0.1 and 0.6 percent each. China and Malaysia are down 1.5 and 0.2 percent, respectively. Hong Kong is closed for the Double Ninth Festival.

On Wall Street, stocks saw modest weakness during trading on Thursday after turning in a strong performance in the previous session. The major averages all gave back ground, with the Dow and the S&P 500 pulling back off yesterday’s record closing highs.

The major averages moved to the upside going into the close of trading but remained in the red. The Dow slipped 57.88 points or 0.1 percent to 42,454.12, the Nasdaq edged down 9.57 points or 0.1 percent to 18,282.05 and the S&P 500 dipped 11.99 points or 0.2 percent to 5,780.05.

The major European markets also moved to the downside on the day. While the U.K.’s FTSE 100 Index edged down by 0.1 percent, the French CAC 40 Index and the German DAX Index both dipped by 0.2 percent.

Crude oil prices rose sharply on Thursday as worries about escalating tensions in the Middle East outweighed uncertainty about the outlook for demand. West Texas Intermediate Crude oil futures for November ended higher by $2.61 or about 3.56 percent at $75.85 a barrel.