Asian Markets Mostly Lower

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Asian stock markets are mostly lower on Wednesday following the mixed cues overnight from Wall Street. Investors are cautious as they await China's trade data due later in the day. However, energy stocks advanced as crude oil prices rose above the $50 mark for the first time in ten months.

The Australian market opened lower, as weakness in mining and bank stocks more than offset gains in the energy sector following the overnight increase in crude oil prices.

In late-morning trades, the benchmark S&P/ASX 200 Index is declining 32.80 points or 0.61 percent to 5,338.20, off a low of 5,336.30 earlier. The broader All Ordinaries Index is down 29.20 points or 0.54 percent to 5,411.80.

In the mining sector, BHP Billiton is losing almost 3 percent, Rio Tinto is down 2 percent and Fortescue Metals is lower by almost 2 percent despite a surge in iron ore prices.

BHP Billiton has agreed to sell its 75 percent stake in the IndoMet coal project in Indonesia to its local joint venture partner Adaro Energy, for a reported A$120 million.

Rio Tinto said it will buy back up to $3 billion of its corporate notes as part of its efforts to reduce gross debt.

Among the big four banks, ANZ Bank is losing more than 1 percent, National Australia Bank is down 0.6 percent, and Commonwealth Bank and Westpac are declining almost 1 percent each, amid reduced prospects of a further rate cut from the RBA.

In the oil space, Santos is higher by 0.7 percent, Woodside Petroleum is advancing 0.6 percent and Oil Search is adding more than 1 percent as crude oil prices rose overnight.

Gold miner Newcrest Mining is rising more than 1 percent and Evolution Mining is higher by almost 1 percent.

Pay TV operator Sky Network Television has confirmed it is merger talks with Vodafone Group plc. Shares of Sky TV were placed in a trading halt ahead of the announcement.

Kathmandu Holdings has filed a claim in a court in New Zealand to recover about A$3 million in costs related to its failed takeover bid by New Zealand's Briscoe Group. The outdoor clothing retailer's shares are down 0.4 percent.

In economic news, Australia will provide April numbers for home loans today.

In the currency market, the Australian dollar is sharply higher against the U.S. dollar after the RBA held its cash rate steady on Tuesday. In early trades Wednesday, the local unit was trading at US$0.7457, up from US$0.7435 on Tuesday.

The Japanese market swung between gains and losses, with insurance stocks among the leading losers. Energy shares are higher following the overnight increase in crude oil prices.

In late-morning trades, the benchmark Nikkei 225 Index is currently declining 33.94 points or 0.20 percent to 16,641.51, off a low of 16,640.40.

The major exporters are mixed on a stronger yen. Panasonic is adding more than 1 percent and Toshiba is higher by 0.4 percent, while Sony is down 0.4 percent and Canon is losing 0.7 percent. Meanwhile, market heavyweight Fast Retailing is edging down 0.03 percent.

Automaker Toyota is lower by 0.4 percent and Honda is down 0.2 percent. In the banking space, Mitsubishi UFJ Financial is losing 0.2 percent. Insurer T&D Holdings is declining almost 3 percent and MS&AD Insurance is down more than 3 percent.

In the oil sector, Inpex is higher by almost 1 percent and JX Holdings is adding almost 2 percent after crude oil prices rose overnight. Showa Shell Sekiyu is advancing more than 1 percent.

Among the other major gainers, Screen Holdings is rising more than 4 percent, Chubu Electric Power is gaining almost 4 percent and Suzuki Motor is higher by almost 3 percent. Meanwhile, Yokohama Rubber is losing almost 3 percent and Toto Ltd. is down more than 2 percent after a rating downgrade.

On the economic front, the Cabinet Office said that Japan's gross domestic product was revised up to 0.5 percent on quarter in the first three months of 2016. That was in line with expectations following last month's preliminary reading for a 0.4 percent gain. That followed the 0.4 percent contraction in the previous three months.

The Ministry of Finance said that Japan had a current account surplus of 1.878 trillion yen in April. That was shy of expectations for 2.308 trillion yen following the 2.980 trillion yen surplus in March.

The trade balance came in at 697.1 billion yen, missing forecasts for 919.0 billion yen following the 927.2 billion yen in the previous month.

The Bank of Japan said that overall bank lending in Japan was up 2.2 percent on year in May, coming in at 497.216 trillion yen. That was in line with expectations and unchanged from the previous month.

In the currency market, the U.S. dollar was trading in the upper 106 yen-range on Wednesday.

Elsewhere in Asia, Shanghai, Hong Kong, New Zealand, Indonesia and Malaysia are lower, while South Korea, Singapore and Taiwan are up with modest gains.

On Wall Street, stocks closed mixed on Tuesday after giving up early gains as crude oil settled above $50 for first time in ten months. Traders also continued to assess Federal Reserve Chair Janet Yellen's remarks on Monday.

The Nasdaq dipped 6.96 points or 0.14 percent to 4,961.75, while the Dow added 17.95 points or 0.10 percent to 17,938.28 and the S&P gained 2.72 points or 0.13 percent to 2,112.13.

The European markets ended Tuesday's session firmly in positive territory. The DAX of Germany climbed 1.65 percent, the CAC 40 of France rose 1.19 percent and the FTSE 100 of the U.K. gained 0.18 percent.

Crude oil prices jumped to their highest settlement price of 2016 for a second session in a row Tuesday, fueled by supply disruptions from Nigeria. July WTI oil ended at $50.36 per barrel on the New York Mercantile Exchange, up 67 cents, or 1.4 percent - it was the highest settlement price since June.

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