Asian Markets Track Wall Street Higher

(RTTNews) - Asian stock markets are trading mostly lower on Thursday, following the broadly positive cues from Wall Street overnight, as markets are becoming gradually de-sensitized to the tariff war as traders believe countries would arrive at a trade deal with the US sooner or later ahead of the August 1 deadline. Inflation concerns also eased after report showing producer prices in the U.S. unexpectedly came in flat in June. Asian markets closed mostly lower on Wednesday.

Reports also revealed that US President Donald Trump discussed the possibility of firing US Fed Chair Jerome Powell during a meeting with House Republicans. Later, Trump said he's "not planning" on firing Powell, adding, "I think it's highly unlikely, unless he has to leave for fraud."

Trump has repeatedly called for the Fed to lower interest rates and has harshly criticized Powell for failing to follow his demands.

The Australian market is trading notably higher on Thursday, reversing some of the losses in the previous session, following the broadly positive cues from Wall Street overnight. The benchmark S&P/ASX 200 is moving above the 8,600 level, with gains in financial stocks and a mixed performance in all other sectors. The benchmark S&P/ASX 200 Index is gaining 63.80 points or 0.75 percent to 8,625.60, after touching a high of 8,629.20 earlier. The broader All Ordinaries Index is up 60.30 points or 0.68 percent to 8,876.70. Australian stocks ended significantly lower on Wednesday.

Among major miners, BHP Group and Rio Tinto are gaining more than 1 percent each, while Fortescue Metals is edging up 0.1 percent. Mineral Resources is losing almost 1 percent.

Oil stocks are mostly lower. Santos is edging up 0.1 percent, Beach energy is gaining almost 1 percent and Origin Energy is adding 1.5 percent, while Woodside Energy is edging down 0.2 percent

In the tech space, Zip is edging down 0.5 percent, WiseTech Global is down almost 1 percent and Appen is losing more than 3 percent, while Afterpay owner Block is surging more than 5 percent and Xero is advancing almost 2 percent.

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

Among gold miners, Northern Star Resources is edging up 0.2 percent, Gold Road Resources is adding almost 1 percent and Newmont is advancing almost 2 percent, while Evolution Mining is edging down 0.3 percent and Resolute Mining is losing more than 1 percent.

In the currency market, the Aussie dollar is trading at $0.648 on Thursday.

The Japanese market is trading modestly lower on Thursday, extending the losses in the previous session, despite the broadly positive cues from Wall Street overnight. The Nikkei 225 is falling to near the 39,600 level, with weakness in automakers and technology stocks and a mixed performance in most other sectors.

The benchmark Nikkei 225 Index closed the morning session at 39,602.58, down 60.82 points or 0.15 percent, after hitting a low of 39,370.43 earlier. Japanese shares ended modestly lower on Wednesday.

Market heavyweight SoftBank Group is gaining almost 2 percent, while Uniqlo operator Fast Retailing is losing almost 1 percent. Among automakers, Toyota is edging down 0.3 percent and Honda is losing almost 1 percent.

In the tech space, Advantest is declining more than 2 percent, Tokyo Electron is losing almost 3 percent and Screen Holdings is down more than 1 percent.

In the banking sector, Mizuho Financial is gaining more than 1 percent, while Sumitomo Mitsui Financial and Mitsubishi UFJ Financial are edging up 0.4 and 0.5 percent each.

Among the major exporters, Sony is gaining almost 2 percent and Panasonic is edging up 0.1 percent, while Canon is losing almost 1 percent and Mitsubishi Electric is declining more than 1 percent.

Among other major losers, Lasertec is losing more than 4 percent and Toray Industries is declining almost 3 percent.

Conversely, Mercari is surging almost 5 percent and CyberAgent is gaining more than 3 percent, while M3 and NEC are adding almost 3 percent each.

In economic news, Japan posted a seasonally adjusted merchandise trade surplus of 153.1 billion yen in June, the Ministry of Finance said on Thursday. That was shy of estimates for a surplus of a surplus of 353.9 billion yen following the downwardly revised 638.6 billion yen deficit in May (originally a 637.6 billion yen shortfall).

Exports were down 0.5 percent on year, missing forecasts for a gain of 0.5 percent after sinking 1.7 percent in the previous month. Imports rose an annual 0.2 percent versus expectations for a drop of 1.6 percent after losing 7.7 percent a month earlier.

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

Elsewhere in Asia, New Zealand and Indonesia are up 1.2 and 1.1 percent, respectively. Malaysia, Singapore and Taiwan are higher by between 0.1 and 0.4 percent each. China, Hong Kong and South Korea are lower by between 0.1 and 0.3 percent each.

On Wall Street, stocks showed a lack of direction throughout much of the trading day on Wednesday following the mixed performance seen in the previous session. The major averages moved to the upside in the latter part of the session, however, with the tech-heavy Nasdaq reaching a new record closing high.

The major averages all finished the day in positive territory. The Dow advanced 231.49 points or 0.5 percent to 44,254.78, the Nasdaq rose 52.69 points or 0.3 percent to 20,730.49 and the S&P 500 climbed 19.94 points or 0.3 percent to 6,263.70.

Meanwhile, the major European markets also moved to the downside over the course of the session. While the French CAC 40 Index slid by 0.6 percent, the German DAX Index slipped by 0.2 percent and the U.K.'s FTSE 100 Index edged down by 0.1 percent.

Crude oil prices dropped for the third straight day on Wednesday after the Energy Information Administration said gasoline inventories increased by 3.4 million barrels last week and are slightly above the five-year average for this time of year. West Texas Intermediate crude for August delivery fell $0.14 to settle at $65.38 per barrel.