Asian stock markets are mostly trading notably higher on Monday, with investors indulging in some buying ahead of the crucial U.S. Federal Reserve meet. Most of the markets opened on a weak note on the back of Friday's negative close on Wall Street, but gained in strength subsequently on selective buying at lower levels.
After a weak start and a subsequent sharp fall, the Australian market has bounced back on strong buying in bank stocks and is currently trading in positive territory.
The benchmark S&P/ASX 200 index, which declined to 4,743.3, is trading at 4,814.4, up 22.6 points or 0.5 percent from its previous close. The broader All Ordinaries index is up 17.7 points or 0.4 percent at 4,793.2, well off the day's low of 4,726.4.
Among miners, BHP Billiton (BHP) and Rio Tinto (RIO) are down nearly a percent, while Fortescue Metals and Newcrest Mining are trading lower by over 2.4 percent and 2 percent, respectively.
In the energy sector, Caltex Australia is down nearly 3 percent, Woodside Petroleum is down 1.8 percent, Santos is trading 1.6 percent down, Oil Search is down with a loss of 1.5 percent and Origin Energy is declining 0.7 percent.
Among bank stocks, ANZ Bank, Commonwealth Bank of Australia, National Australia Bank and Westpac (WBK) are up 1.3 to 2 percent. Bendigo & Adelaide Bank and Bank of Queensland are trading modestly higher.
Lend Lease Group shares are down nearly 8 percent. The company has announced that it is restructuring its Australian construction and infrastructure business, through the consolidation of its Abigroup, Baulderstone, Project Management & construction and Infrastructure Services businesses.
The strengths of these four businesses will be transitioned into sector-based businesses one business in each of the building, engineering and infrastructure services sectors, the company said.
Lynas Corp. is down 5.3 percent. Regis Resources, Aurora Oil & Gas, Amcor, Bluescope Steel, Computershare and Arrium are trading lower by 2.5 to 3.6 percent.
ALS, Carsales.Com, Beach Energy, Whitehaven Coal, Sims Metal Management, PanAust, Mineral Resources, Incitec Pivot and WorleyParsons are all trading lower by 2 to 2.4 percent.
In the currency market, the Australian dollar opened lower against the U.S. dollar. In early trades, the local unit was quoting at US$0.9564, down 0.3 percent from Friday's close of US$0.9594.
The Japanese market opened lower on Monday, with a stronger yen and Friday's weak close on Wall Street triggering some selling in early trades. However, following the dollar's rebound against the yen, the market bounced back smartly and was trading in positive territory with strong gains when the morning session ended.
The benchmark Nikkei 225 index, which plunged to around 12,550 in early trades, was up 152.1 points or 1.2 percent at 12,838.7 at the break.
Denso Corp. moved up by over 10 percent. Chiyoda Corp., NSK, Tokuyama Corp., Taiheiyo Cement, Japan Tobacco, Sumitomo Osaka Cement, Nippon Light Metal Holdings, Ajinomoto, Konica Minolta, Mitsui Engineering & Shipbuilding, Keisei Electric Railway and Pacific Metals gained 4 to 6 percent.
Mitsubishi Motors, Yahoo Japan, Toyo Seikan Group, Softbank Corp., Nippon Electric Glass, Nippon Express, MS&AD Insurance Group, Asahi Glass, West Japan Railway and Sony Financial Group were all trading higher by over 3 percent.
Among the losers, Tokyo Tatemono was down 4.7 percent, Sumitomo Realty & Development, Tokyu Land, Mitsui Fudosan and Hewia Real Estate were trading lower by 3 to 4 percent, and Sumitomo Mitsui Trust Holdings, Casio Computer, Hitachi, Toshiba Corp. and Sumitomo Mitsui Financial Group were down 1 to 2.2 percent.
On the economic front, an index measuring tertiary industry activity in Japan was flat on month in April, at a seasonally adjusted 99.7, the Ministry of Economy, Trade and Industry said on Monday. That missed forecasts for a gain of 0.2 percent following the upwardly revised decline of 0.9 percent in March (originally -1.3 percent).
Industries that saw an increase in activity included finance, scientific research, health care, communications and utilities. Industries that saw a decline in activity included retail trade, transportation, amusement services, real estate, accommodations and learning support.
In the currency market, the U.S. dollar traded in the lower 94 yen range in early deals in Tokyo. The yen is currently trading at 94.40 to the U.S. dollar.
Among other markets in the Asia-Pacific region, Hong Kong, Indonesia, Singapore and Taiwan are trading notably higher. Malaysia and New Zealand are up with modest gains, while South Korea and Shanghai are trading weak.
On Wall Street, stocks ended weak on Friday, with investors reacting to a disappointing report on industrial production in May and an unexpected deterioration in consumer sentiment in June. The lowering of U.S. economic growth forecast by the International Monetary Fund too weighed on sentiment.
The Dow ended the day down 105.9 points or 0.7 percent at 15,070.2, the Nasdaq dropped 21.8 points or 0.6 percent to 3,423.6 and the S&P 500 slipped 9.6 points or 0.6 percent to 1,626.7.
Major European markets ended higher on Friday. While the German DAX index advanced by 0.4 percent, the French CAC 40 index and the U.K.'s FTSE 100 index edged up by 0.2 percent and 0.1 percent, respectively.
U.S. crude oil ended sharply higher for a third straight session on Friday, with increased tensions in the Middle East fuelling supply concerns after the U.S. administration indicated it would arm the Syrian rebels fighting President Bashar al-Assad's regime.
Crude for July delivery jumped $1.16 or 1.2 percent to close at $97.85 a barrel on the New York Mercantile Exchange.
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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.