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Asian Markets Trading Mostly Higher

asianup march03 29nov21 lt

Asian stock markets are trading mostly higher on Tuesday, following the broadly positive cues from Wall Street overnight, as traders are picking up stocks at a bargain after the recent virus-infused heavy sell-off. Traders also reacted positively to reports that the new coronavirus variant would be milder than initially dreaded, even as they await more details to assess the likely impact of the variant on the global economy recovery. Asian stocks ended mostly lower on Monday.

The Australian stock market is significantly higher on Tuesday, recouping some of the losses in the previous two sessions, with the benchmark S&P/ASX 200 back above the 7,300 level, following the broadly positive cues from Wall Street overnight, as traders picked stocks at a bargain after the virus-induced sell-off. Traders also digested reports that the new coronavirus variant would be milder than initially dreaded.

The benchmark S&P/ASX 200 Index is gaining 65.60 points or 0.91 percent to 7,305.40, after touching a high of 7,332.60 earlier. The broader All Ordinaries Index is up 72.30 points or 0.96 percent to 7,634.80. Australian stocks closed modestly lower on Monday.

Among the major miners, Mineral Resources is adding more than 1 percent, while BHP Group and OZ Minerals are gaining almost 1 percent each. Rio Tinto is edging down 0.2 percent and Fortescue Metals is losing more than 1 percent.

Oil stocks are mixed. Woodside Petroleum is gaining more than 1 percent, while Oil Search and Beach energy are edging up 0.3 percent each. Origin Energy is losing more than 1 percent and Santos is flat.

Among the big four banks, National Australia Bank is gaining almost 2 percent, Commonwealth Bank is adding almost 1 percent, ANZ Banking is advancing almost 3 percent and Westpac is up more than 1 percent.

Westpac has agreed to pay $113 million in fines after Australian regulator ASIC found that it had committed widespread compliance failures that included charging dead people.

Among tech stocks, Appen and Xero are gaining more than 3 percent each, while WiseTech Global is up 1.5 percent and Afterpay is edging up 0.5 percent.

Gold miners are mostly lower. Resolute Mining is losing almost 1 percent and Northern Star Resources is edging down 0.5 percent, while Newcrest Mining and Gold Road Resources are slipping more than 1 percent each. Evolution Mining is gaining almost 1 percent.

In economic news, the total number of building permits issued in Australia was down a seasonally adjusted 12.9 percent on month in October, the Australian Bureau of Statistics (ABS) said on Tuesday, standing at 15,911. That missed forecasts for a drop of 2.0 percent following the 4.3 percent decline in September. On a yearly basis, total permits sank 8.1 percent, permits for houses fell 3.7 percent and permits for dwellings excluding houses dropped 16.5 percent. The overall value of buildings approved was A$10.112 billion.

The ABS also said Australia posted a current account surplus of A$23.886 billion in the third quarter of 2021. That missed forecasts for a surplus of A$27.8 billion but was up from A$20.5 billion in the three months prior.

Meanwhile, private sector credit in Australia was up 0.5 percent on month in October, the Reserve Bank of Australia said on Tuesday, slowing from 0.6 percent in September. On a yearly basis, credit was up 5.7 percent, accelerating from 5.3 percent in the previous month.

In the currency market, the Aussie dollar is trading at $0.715 on Tuesday.

The Japanese stock market is significantly higher on Tuesday, recouping some of the losses in the previous two sessions, with the benchmark Nikkei index above the 28,600 level, following the broadly positive cues from Wall Street overnight, as traders picked stocks at a bargain after the virus-induced sell-off. Traders also digested reports that the new coronavirus variant would be milder than initially dreaded.

The benchmark Nikkei 225 Index closed the morning session at 28,498.91, up 214.99 points or 0.76 percent, after touching a high of 28,718.70 earlier. Japanese shares closed sharply lower on Monday.

Market heavyweight SoftBank Group is edging up 0.4 percent and Uniqlo operator Fast Retailing is flat. Among automakers, Honda is gaining more than 1 percent and Toyota is adding almost 2 percent.

In the tech space, Advantest is gaining almost 4 percent, Tokyo Electron is adding more than 3 percent and Screen Holdings is up almost 3 percent. In the banking sector, Mitsubishi UFJ Financial is gaining more than 1 percent, Sumitomo Mitsui Financial is edging up 0.5 percent and Mizuho Financial is adding almost 1 percent.

The major exporters are mostly higher. Mitsubishi Electric is edging up 0.3 percent and Panasonic is flat, while Canon is gaining more than 3 percent and Sony is adding almost 3 percent.

Among the other major gainers, Nikon is surging almost 6 percent and Japan Exchange Group is gaining almost 5 percent, while Olympus, Yaskawa Electric and Odakyu Electric Railway are adding more than 4 percent each. Hitachi Zosen, kelo, Minebea Mitsumi, Keisei Electric Railway and Sumco are up almost 4 percent each, while East Japan Railway Ricoh and Yokogawa Electric are rising more than 3 percent each.

Conversely, Nissan Motor is losing almost 3 percent.

In economic news, the unemployment rate in Japan came in at a seasonally adjusted 2.7 percent in October, the Ministry of Internal Affairs and Communications said on Tuesday. That was below expectations for 2.8 percent, which would have been unchanged from the September reading. The participation rate was 62.0 percent, down from 62.3 percent a month earlier.

Meanwhile, the Ministry of Economy, Trade and Industry said on Tuesday that industrial production in Japan was up a seasonally adjusted 1.1 percent on month in October. That was shy of expectations for an increase of 1.8 percent following the 5.4 percent decline in September. On a yearly basis, industrial production retreated 4.7 percent after sinking 2.3 percent in the previous month. Upon the release of the data, the METI adjusted its monthly assessment of industrial production to that it is pausing.

In the currency market, the U.S. dollar is trading in the higher 113 yen-range on Tuesday.

Elsewhere in Asia, New Zealand is surging 1.4 percent, while China, South Korea, Taiwan, Malaysia and Indonesia are higher by between 0.2 and 0.8 percent each. Hong Kong and Singapore are lower by 1.2 and 0.2 percent, respectively.

On Wall Street, stocks showed a strong move back to the upside during trading on Monday following the sell-off seen last Friday. The major averages all regained ground, with the tech-heavy Nasdaq leading the way higher.

The major averages gave back some ground going into the close but remained firmly positive. The Dow climbed 236.60 points or 0.7 percent to 35,135.94, the Nasdaq spiked 291.18 points or 1.9 percent to 15,782.83 and the S&P 500 jumped 60.65 points or 1.3 percent to 4,655.27.

The major European markets also moved to the upside on the day. While the U.K.'s FTSE 100 Index advanced by 0.9 percent, the French CAC 40 Index rose by 0.5 percent and the German DAX Index edged up by 0.2 percent.

Crude oil futures settled sharply higher Monday, bouncing back and regaining some ground after Friday's setback as traders looked ahead to OPEC meetings. West Texas Intermediate Crude oil futures for January ended higher by $1.80 or 2.6 percent at $69.95 a barrel.

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