Asian Markets Mixed Amid Caution Trades

(RTTNews) - Asian stock markets are trading mixed on Friday, following the broadly positive cues from Wall Street overnight, ahead of the release of key U.S. inflation data later in the day that could impact the outlook for interest rates. Traders also digested highly anticipated earnings news from Nvidia, with the AI darling and market leader reporting second-quarter results that largely exceeded expectations. Asian markets ended mostly higher on Thursday.

Expectations are running high for a rate cut, with CME Group's FedWatch Tool currently indicating an 87.2 percent chance the Fed will lower rates by a quarter point at its next monetary policy meeting in September.

The Australian stock market is trading modestly lower on Friday, giving up some of the gains in the previous two sessions, despite the broadly positive cues from Wall Street overnight. The benchmark S&P/ASX 200 is staying below the 9,000 mark, with weakness in mining and financial stocks partially offset by gains in energy and technology stocks.

The benchmark S&P/ASX 200 Index is losing 16.90 points or 0.19 percent to 8,963.10, after hitting a low of 8,948.00 earlier. The broader All Ordinaries Index is down 10.10 points or 0.11 percent to 9,231.00. Australian stocks closed modestly higher on Thursday.

Among major miners, BHP Group is edging down 0.2 percent and Mineral Resources is losing almost 2 percent, while Rio Tinto and Fortescue are flat.

Oil stocks are mostly higher. Beach energy is gaining more than 1 percent and Woodside Energy is edging up 0.1 percent, while Santos is edging down 0.5 percent. Origin Energy is flat.

Among tech stocks, Afterpay-owner Block and Xero is adding almost 1 percent each, while Zip is advancing more than 4 percent, Appen is up almost 3 percent and WiseTech Global is gaining almost 2 percent.

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

Gold miners are mixed. Evolution Mining and Newmont are gaining almost 1 percent each, while Northern Star Resources is edging down 0.2 percent and Resolute Mining is losing more than 1 percent. Gold Road Resources is flat.

In other news, shares in Nextdc Ltd. are surging almost 16 percent after the data centre operator reported upbeat full-year results.

Shares in Harvey Norman are soaring more than 10 percent after reporting upbeat results, well above market expectations.

Shares in Austal are jumping more than 14 percent after it delivered a sharp turnaround in the 12 months to June 30, with net profit after tax jumping five-fold on stronger shipbuilding performance and a record order pipeline.

Shares in Boss Energy are jumping almost 9 percent after reporting its first full-year production results from the Honeymoon and Alta Mesa uranium operations, generating $17.4 million in positive operating cashflow for the 2024-25 financial year.

In the currency market, the Aussie dollar is trading at $0.654 on Friday.

Giving up some of the gains in the previous two sessions, the Japanese market is notably lower on Friday, despite the broadly positive cues from Wall Street overnight. The Nikkei 225 is falling well below the 42,650 level, with weakness across most sectors led by exporters and technology stocks.

The benchmark Nikkei 225 Index closed the morning session at 42,642.97, down 185.82 points or 0.43 percent, after hitting a low of 42,611.31 earlier. Japanese shares ended notably higher on Thursday.

Market heavyweight SoftBank Group is gaining almost 1 percent, while Uniqlo operator Fast Retailing is losing almost 1 percent. Among automakers, Toyota is losing more than 1 percent, while Honda is adding 1.5 percent.

In the tech space, Advantest is losing almost 1 percent, Tokyo Electron is declining more than 2 percent and Screen Holdings is down more than 1 percent.

In the banking sector, Sumitomo Mitsui Financial and Mitsubishi UFJ Financial are losing almost 1 percent each, while Mizuho Financial is edging down 0.5 percent.

Among the major exporters, Sony is losing almost 2 percent and Canon is edging down 0.2 percent, while Mitsubishi Electric and Panasonic are down almost 1 percent each.

Among other major losers, Ryohin Keikaku is declining almost 6 more than 3 percent, while Tokyo Electric Power and Hino Motors are losing almost 3 percent each.

Conversely, Dentsu Group is jumping more than 10 percent and Furukawa Electric is gaining more than 3 percent.

In economic news, overall consumer prices in the Tokyo region of Japan - considered a leading indicator for the national trend - were up 2.6 percent on year in August, the Ministry of Internal Affairs and Communications or MIAC, said on Friday. That was in line with expectations and down from 2.9 percent in July. Core consumer prices - which strips out the volatiles costs of food - were up an annual 2.5 percent. That again was in line with expectations and down from 2.9 percent in the previous month.

The MIAC also said the unemployment rate in Japan came in at a seasonally adjusted 2.3 percent in July, the Ministry of Internal Affairs and Communications said on Friday. That was below expectations for 2.5 percent, which would have been unchanged from the June reading. The jobs-to-applicant ratio was 1.22 - unchanged from the previous month by missing forecasts for 1.23.

Further, Industrial production in Japan was down a seasonally adjusted1.6 percent on month in July, the Ministry of Economy, Trade and Industry or METI, said on Friday. That missed expectations for a decline of 1.1 percent following the 2.1 percent increase in June. On a yearly basis, industrial production was down 0.9 percent. Upon the release of the data, the METI maintained its assessment for industrial production, saying that it continues to fluctuate indecisively.

The METI also said the value of retail sales in Japan was up a seasonally adjusted 0.3 percent on month in July, the Ministry of Economy, Trade and Industry said on Friday - coming in at 13.335 trillion yen. That misses forecasts for an increase of 1.5 percent following the downwardly revised 1.9 percent gain in June (originally 2.0 percent). On a yearly basis, retail sales slumped 1.6 percent after gaining 0.9 percent in the previous month.

In the currency market, the U.S. dollar is trading in the higher 146 yen-range on Friday.

Elsewhere in Asia, New Zealand, China, Hong Kong, Singapore and Taiwan are higher by between 0.2 and 0.7 percent, while South Korea, Malaysia and Indonesia and are lower by between 0.1 and 0.7 percent.

On Wall Street, stocks moved mostly higher over the course of the trading day on Thursday after showing a lack of direction early in the session. The major averages added to the gains posted in the two previous sessions, with the S&P 500 reaching another new record closing high.

The major averages ended the day just off their highs of the session. The Nasdaq climbed 115.02 points or 0.5 percent to 21,705.16, the S&P 500 rose 20.46 points or 0.3 percent to 6,501.86 and the Dow edged up 71.67 points or 0.2 percent to 45,636.90.

Meanwhile, the major European markets turned in a mixed performance on the day. While the French CAC 40 Index edged up by 0.2 percent, the German DAX Index closed just below the unchanged line and the U.K.'s FTSE 100 Index fell by 0.4 percent.

Crude oil prices moved higher on Thursday following a drop in U.S. crude inventories a day earlier. West Texas Intermediate crude for October delivery was up $0.42 or 0.65 percent at $64.57 per barrel.