Asian stock markets are mostly trading higher on Wednesday with the overnight positive close on Wall Street aiding sentiment. However, with investors looking to take some profits after recent gains, most of the markets came off their highs and are currently trading just marginally up in positive territory. The Japanese market, however, is up sharply once again with a weak yen buoying up sentiment.
After a fairly smart upmove, the Australian stock market retreated, with a bigger than expected deficit in the federal budget hurting sentiment.
Financial, healthcare, information technology and property trusts stocks are trading higher, while mining and industrial stocks are mostly trading weak. Energy and consumer discretionary stocks are mixed.
The benchmark S&P/ASX 200 index, which surged to 5,249.6 in early trades, plunged to 5,168.5 and is currently down 39.5 points or 0.8 percent at 5,181.5. The broader All Ordinaries index is down 38.3 points or 0.7 percent at 5,164.2, well off the day's high of 5,229.8.
Among bank stocks, ANZ Bank, Westpac (WBK), National Australia Bank and Commonwealth Bank of Australia are trading higher by 0.8 to 1.2 percent. Commonwealth Bank of Australia announced that its third-quarter profit rose 12 percent from the year-ago period to A$1.9 billion.
Bendigo & Adelaide Bank and Bank of Queensland are up 1 percent and 1.2 percent, respectively.
Among miners, BHP Billiton (BHP) is down 1.6 percent, Rio Tinto (RIO) is trading lower by 2.5 percent, Fortescue Metals is down with a loss of 4 percent and Newcrest Mining is trading lower by about 2.5 percent.
In the energy sector, Woodside Petroleum, Santos, Oil Search and Origin Energy are up 0.8 to 1.2 percent, while Caltex Australia is trading in negative territory with a loss of 1.3 percent.
UGL Limited shares are down as much as 14.6 percent following the company lowering its full-year earnings outlook. Monadelphous Group and Downer EDI are trading lower by 9.8 percent and 9.6 percent, respectively.
ALS is down with a loss of 6 percent. Perseus Mining, Atlas Iron, Leighton Holdings, Sims Metal Management, PanAust and Whitehaven Coal are down 3.5 to 5 percent. Alumina (AWC), Seek, Lynas Corp., David Jones, Lend Lease Group, Aurora Oil & Gas and Aristocrat Leisure are down 2.5 to 3 percent.
Carsales.Com is trading 2.5 percent up. APA Group, AMP and Treasury Wine Estates are also trading higher.
On the economic front, the total number of new motor vehicle sales in Australia was down a seasonally adjusted 1.6 percent on month at 93,423 in April, according to the data released by the Australia Bureau of Statistics. That follows the 0.6 percent contraction in March. On a yearly basis, new motor vehicle sales were up 3.3 percent after rising 4.5 percent in the previous month.
Australia's Q1 numbers for wage costs and April figures for new motor vehicle sales is due for release during the day. Wage costs are expected to add 0.8 percent on quarter and 3.3 percent on year after rising 0.8 percent on quarter and 3.4 percent on year in the previous three months.
In the currency market, the Australian dollar opened slightly weak against the U.S. dollar. In early trades, the Aussie was quoting at US$0.9892, down from Monday's close of US$0.9980.
Buoyed by a strong close on Wall Street overnight and the dollar's rise against the yen, the Japanese stock market opened on a rousing note.
As stocks surged higher amid hectic buying, the benchmark Nikkei 225 index zoomed past the 15,000 mark. With most of its components trading sharply higher, the Nikkei was up 338.6 points or 2.3 percent at 15,097 when the morning session ended.
Banking, automobile, steel, non-ferrous metals, railway, precision instruments, textiles and chemicals stocks were mostly up with strong gains.
Isuzu Motors vaulted by over 20 percent on bright earnings outlook. Taiyo Yuden, NGK Insulators, Sony Corp. (SNE) and Tokyo Electric Power gained 12 to 15 percent.
T&D Holdings and Sony Financial Holdings were up nearly 10 percent. Mitsubishi Electric Corp., Sumitomo Mitsui Trust Holdings, Panasonic Corp. (PC), Citizen Holdings, Japan Tobacco, Sumitomo Chemical and Softbank Corp. moved up by 5 to 8 percent.
Mitsubishi UFJ Financial Group Inc. (MTU) gained 6 percent on expectations of strong earnings results. Seven & I Holdings, Fuji Heavy Industries, Mazda Motor, Hino Motors, Nissan Motor, Mitsui Chemicals, Olympus Corp., Dai-ichi Life Insurance, Casio Computer and Kawasaki Heavy Industries gained 3 to 5 percent.
Mizuho Financial Group (MFG), Shizuoka Bank, Shinsei Bank, Showa Denko KK, Taiheiyo Cement, J Front Retailing and Daikin Industries also rose sharply.
Meanwhile, Heiwa Real Esate, Tokyo Dome, Nisshin Steel Holdings, Sharp Corp., Nissan Chemical Industries, Credit Saison and Tokyo Tatemono declined, losing 1 to 4 percent.
On the economic front, an index measuring tertiary industry activity in Japan was down a seasonally adjusted 1.3 percent on month in March, the Ministry of Economy, Trade and Industry said on Wednesday, standing at 98.6. That missed forecasts for a decline of 0.7 percent following the 1.1 percent increase in February.
Industries that contracted were information and communications, wholesale and retail trade, utilities and amusement services. Industries that expanded were scientific research, transport activities, health care and real estate.
In the currency market, the U.S. dollar traded in the lower 102 yen range in early deals in Tokyo. The yen is currently trading at 102.18 to the U.S. dollar.
Among other markets in the Asia-Pacific region, Hong Kong, Indonesia, Singapore and Taiwan are trading with modest gains. Shanghai, Malaysia and New Zealand are up marginally, while South Korea is trading slightly weak.
On Wall Street, stocks moved notably higher on Tuesday, with traders reacting positively to 'bullish' comments about the economy from hedge fund manager David Tepper. The gains lifted the Dow and the S&P 500 to new record highs, while the Nasdaq set another new twelve-year high.
The Dow advanced 123.6 points or 0.8 percent to 15,215.3, the Nasdaq rose 23.8 points or 0.7 percent to 3,462.6 and the S&P 500 jumped 16.6 points or 1 percent to 1,650.3.
Major European markets too ended higher on Tuesday. The French CAC 40 index gained 0.5 percent, while the German DAX index and the U.K.'s FTSE 100 index moved up by 0.7 percent and 0.8 percent, respectively.
U.S. crude oil slipped for a fourth straight day to end lower on Tuesday, mostly on demand growth concerns and with the dollar strengthening against some major currencies. Crude for June delivery ended down $0.96 or 1.0 percent at $94.21 a barrel on the New York Mercantile Exchange.
For comments and feedback contact: editorial@rttnews.com
Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.