Asian Markets Track Wall Street Lower

(RTTNews) - Asian markets are mostly lower in sluggish trading on Thursday, following the broadly negative cues from Wall Street overnight, as traders remain cautious amid lingering uncertainty about the outlook for interest rates as they fretted about sticky US inflation and a slowing US job market. They also reacted to mixed messages from the US Fed officials on interest rates, with Fed Chair Jerome Powell striking a cautious tone. Asian markets closed mixed on Wednesday.

Powell described equity prices as "fairly highly valued" following the recent run to record highs. He warned that cutting rates too aggressively could pose inflation risks to the economy. Several Fed officials, including Fed Chair Jerome Powell reiterated caution over further policy easing.

However, despite Powell's cautious stance on further monetary easing, traders continue to bet on two more rate cuts this year. According to CME Group's FedWatch Tool, investors are betting on a 94.1 chances of a 25 basis point interest rate cut at the Fed's October 28-29 meeting.

The Australian market is modestly higher in choppy trading on Thursday alternating across the unchanged line, recouping some of the losses in the previous session, despite the broadly negative cues from Wall Street overnight. The benchmark S&P/ASX 200 is staying above the 8,750 level, with gains in energy stocks and a mixed performance across most other sectors.

The benchmark S&P/ASX 200 Index is gaining 21.20 points or 0.24 percent to 8,785.70, after hitting a low of 8,737.90 and a high of 8,785.20 earlier. The broader All Ordinaries Index is up 16.30 points or 0.18 percent to 9,073.90. Australian stocks ended significantly lower on Wednesday.

Among major miners, Rio Tinto and BHP Group are advancing more than 3 percent each, while Mineral Resources is edging up 0.4 percent. Fortescue is edging down 0.2 percent.

Oil stocks are mostly higher. Beach energy is advancing almost 3 percent, Woodside Energy is adding more than 2 percent, Origin Energy is edging up 0.1 percent and Santos is gaining almost 1 percent.

In the tech space, Afterpay owner Block is gaining more than 1 percent and Appen is adding almost 3 percent, while WiseTech Global, Xero and Zip are edging down 0.1 to 0.5 percent each.

Among the big four banks, Westpac is gaining more than 1 percent, while National Australia Bank and ANZ Banking are edging up 0.4 to 0.5 percent each. Commonwealth Bank is losing almost 1 percent.

Among gold miners, Gold Road Resources is edging up 0.1 percent and Evolution Mining is gaining almost 1 percent, while Northern Star Resources is losing almost 1 percent and Resolute Mining is declining more than 1 percent. Newmont is flat.

In the currency market, the Aussie dollar is trading at $0.659 on Thursday.

The Japanese market is modestly higher in choppy trading on Thursday, extending the gains in the previous two sessions, despite the broadly negative cues from Wall Street overnight. The Nikkei 225 is moving above the 45,700 level, with gains in automakers, exporters and financial stocks partially offset by weakness in index heavyweights and technology stocks.

The benchmark Nikkei 225 Index closed the morning session at 45,719.71, up 89.40 points or 0.20 percent, after touching a high of 45,824.69 and a low of 45,503.31 earlier. Japanese shares ended modestly higher on Wednesday.

Market heavyweight SoftBank Group is losing almost 1 percent and Uniqlo operator Fast Retailing is edging down 0.4 percent. Among automakers, Toyota and Honda are edging up 0.3 percent each.

In the tech space, Advantest is losing 1.5 percent and Screen Holdings is declining almost 2 percent, while Tokyo Electron is edging up 0.2 percent.

In the banking sector, Mizuho Financial and Mitsubishi UFJ Financial are gaining almost 1 percent each, while Sumitomo Mitsui Financial is edging up 0.1 percent.

Among the major exporters, Mitsubishi Electric and Panasonic are edging up 0.1 to 0.4 percent each, while Sony is gaining almost 1 percent. Canon is edging down 0.3 percent.

Among other major losers, Sumitomo Pharma is losing almost 4 percent.

Conversely, Sumitomo Metal Mining is surging almost 7 percent and Mitsubishi Materials is advancing almost 5 percent, while Japan Exchange Group and Recruit Holdings are gaining more than 3 percent each. Dowa Holdings, JGC Holdings and Takashimaya are adding almost 3 percent each.

In economic news, the Bank of Japan will on Thursday release the minutes from its monetary policy meeting on July 30-31. At the meeting, the BoJ maintained its interest rate and lifted its inflation outlook citing the rise in food prices. The policy board unanimously decided to hold the uncollateralized overnight call rate to remain at around 0.5 percent. Previously, the bank had raised the benchmark rate to the current level from 0.25 percent in January.

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

Elsewhere in Asia, New Zealand, China, Hong Kong, Singapore and Malaysia are lower by between 0.1 and 0.5 percent each, while Indonesia is bucking the trend and is up 1.1 percent. South Korea and Taiwan are relatively flat.

On Wall Street, stocks saw further downside during trading on Wednesday after coming under pressure over the course of the previous session. The major averages showed a lack of direction early in the session but slid more firmly into negative territory as the day progressed.

The major averages finished the day off their worst levels but still moderately lower. The Dow slid 171.50 points or 0.4 percent at 46,121.28, the Nasdaq fell 75.62 points or 0.3 percent to 22,497.86 and the S&P 500 dipped 18.95 points or 0.3 percent to 6,637.97.

Meanwhile, the major European markets ended the day mixed. While the French CAC 40 Index fell by 0.6 percent, the German DAX Index crept up by 0.2 percent and the U.K.'s FTSE 100 Index increased by 0.3 percent.

Crude oil prices soared on Wednesday due to the increasing likelihood of Russian oil exports facing heavy U.S. sanctions. West Texas Intermediate crude oil for November delivery was up $1.61 or 2.54 percent at $65.02 per barrel.