Asian Markets Track Global Markets Higher

(RTTNews) - Asian stock markets are trading mostly higher on Monday, following the broadly positive cues from global markets on Friday, as traders reacted to data showing the U.S. economy grew more than expected in the second quarter, which helped quell fears of an imminent recession. The data also helped ease concerns about the outlook for interest rates, and raised hopes the Fed will end its tightening cycle soon. Asian markets closed mixed on Friday.

The Australian stock market is slightly higher on Monday, recouping the losses in the previous session, with the benchmark S&P/ASX 200 staying above the 7,400 level, following the broadly positive cues from global markets on Friday, with gains across most sectors, led by energy stocks and technology stocks.

Traders are also cautious ahead of the Reserve Bank Australia's interest rate decision tomorrow, where the central bank is widely expected to pause its interest-rate-hiking cycle.

The benchmark S&P/ASX 200 Index is gaining 3.00 points or 0.04 percent to 7,406.60, after touching a high of 7,434.30 earlier. The broader All Ordinaries Index is up 5.10 points or 0.07 percent to 7,621.20. Australian stocks closed significantly lower on Friday.

Among the major miners, BHP Group and Rio Tinto are gaining almost 1 percent each, while Mineral Resources is edging up 0.4 percent and Fortescue Metals is adding more than 1 percent.

Oil stocks are mostly higher. Santos is gaining almost 1 percent, Woodside Energy is adding more than 1 percent and Beach energy is edging up 0.2 percent, while Origin Energy is edging down 0.2 percent.

Among tech stocks, Afterpay owner Block and Appen are gaining almost 2 percent each, while WiseTech Global is edging up 0.3 percent and Xero is adding almost 1 percent. Zip is flat.

Gold miners are mostly lower. Gold Road Resources and Northern Star Resources are losing almost 1 percent each, while Evolution Mining and Newcrest Mining are edging down 0.1 to 0.5 percent each. Resolute Mining is gaining more than 1 percent.

Among the big four banks, Commonwealth Bank, ANZ Banking and National Australia Bank are edging up 0.1 to 0.2 percent each, while Westpac is flat.

In other news, shares in Silver Lake Resources are plummeting almost 22 percent after reports that it's Sugar Zone mining and processing activities will be idled in 2024. It also reported quarterly results which fell below market expectations.

In economic news, private sector credit in Australia was up 0.2 percent on month in June, the Reserve Bank of Australia said on Monday - slowing from 0.4 percent in May. On a yearly basis, private sector credit climbed 5.5 percent after jumping 8.6 percent a year earlier. Broad money slipped 0.3 percent on month but gained 4.3 percent on year.

In the currency market, the Aussie dollar is trading at $0.668 on Monday. The Japanese stock market is sharply higher on Monday, recouping the losses in the previous session, with the Nikkei 225 moving above the 33,300 level, following the broadly positive cues from global markets on Friday, with gains across most sectors, led by exporters and index heavyweights. The benchmark Nikkei 225 Index closed the morning session at 33,262.74, up 503.51 or 1.54 percent, after touching a high of 33,402.08 earlier. Japanese shares ended modestly lower on Friday.

Market heavyweight SoftBank Group is gaining more than 2 percent and Uniqlo operator Fast Retailing is advancing almost 3 percent. Among automakers, Honda and Toyota are gaining almost 3 percent each.

In the tech space, Tokyo Electron is gaining almost 3 percent, while Screen Holdings is edging down 0.5 percent and Advantest is losing more than 1 percent. In the banking sector, Sumitomo Mitsui Financial is edging up 0.2 percent, while Mitsubishi UFJ Financial is edging down 0.1 percent. Mizuho Financial is flat.

The major exporters are mostly higher. Sony is gaining more than 2 percent, Canon is adding almost 2 percent, Panasonic is advancing more than 3 percent and Mitsubishi Electric is edging up 0.5 percent.

Among other major gainers, Toyota Tsusho is soaring almost 10 percent, while Kansai Electric Power and Hitachi are surging more than 5 percent each. NEC, Denso, Daiichi Sankyo and Chugai Pharmaceutical are gaining almost 5 percent, while Konami Group, Chubu Electric Power, Renesas Electronics and Yokohama Rubber are adding more than 4 percent each. Toppan, Concordia Financial Group and Nitto Denko are up almost 4 percent each, while Hoya is rising more than 3 percent.

Conversely, Fanuc is losing more than 6 percent, Sumitomo Pharma is declining more than 5 percent and Keyence is down almost 4 percent.

In economic news, the value of retail sales in Japan was down 0.4 percent on month in June, the Ministry of Economy, Trade and Industry said on Monday - coming in at 13.225 trillion yen. That missed expectations for an increase of 0.2 percent following the upwardly revised 1.4 percent gain in May (originally 1.3 percent). On a yearly basis, retail sales climbed 5.9 percent, matching forecasts and up from 5.8 percent in the previous month.

The METI also said industrial output in Japan was up 2.0 percent on month in June. That was shy of expectations for a gain of 2.4 percent following the 2.2 percent decline in May. On a yearly basis, industrial production slipped 0.4 percent after jumping 4.2 percent in the previous month. Upon the release of the data, the METI revised its assessment of industrial production, saying that it is showing signs of increase at a moderate pace.

In the currency market, the U.S. dollar is trading in the higher 141 yen-range on Monday.

Elsewhere in Asia, Hong Kong is up 1.7 percent, while New Zealand, China, South Korea, Malaysia, Taiwan and Indonesia are higher by between 0.1 and 0.9 percent each. Singapore is relatively flat.

On Wall Street, stocks closed on a bright note on Friday, firmly holding their gains after a positive start. Some encouraging earnings updates from top tech firms and data showing a slowdown in the annual rate of growth in consumer prices in the month of June aided sentiment.

The major averages all ended with strong gains, with the tech-laden Nasdaq outperforming others. The Dow ended with a gain of 176.55 points or 0.50 percent at 35,459.29. The S&P 500 advanced 44.82 points or 0.99 percent to settle at 4,582.23, while the Nasdaq climbed 266.55 points or 1.9 percent to 14,316.66.

The major European markets also finished the day slightly higher on Friday despite struggling for direction for much of the day's trading session. Germany's DAX climbed 0.39 percent, France's CAC 40 advanced 0.15 percent, and the U.K.'s FTSE 100 edged up 0.02 percent.

Oil prices climbed higher on Friday, and the most active futures contract posted gains for the fifth straight week amid easing U.S. recession fears and on optimism over increased demand. West Texas Intermediate Crude futures for September added $0.49 or 0.6 percent at $80.58 a barrel. WTI crude futures gained 4.6 percent in the week.