Asian Markets Trade Mostly Higher

(RTTNews) - Asian stock markets are trading mostly higher on Tuesday, following the broadly positive cues from Wall Street overnight, amid increasing expectations of a U.S. Fed interest rate cut next month after recent data showed US consumer price inflation rose in line with estimates in August. Concerns about a potential partial U.S. government shutdown are weighing on market sentiment. Asian markets closed mostly higher on Monday.

Traders also seemed reluctant to make more significant moves ahead to the release of the closely watched US monthly jobs report and US consumer confidence data on Friday, which could impact the outlook for interest rates.

According to CME Group's FedWatch Tool, investors are betting on an 89.3% chance of a 25 basis point interest rate cut at the Fed's October 28-29 meeting.

Starting October 1, the U.S. government may go into a partial shutdown as Democrats and Republicans are locking horns over allowing temporary funding required to run the machinery, with the threat of essential services being disrupted across the US.

The Australian stock market is slightly higher in choppy trading on Tuesday, adding to the gains in the previous three sessions, following the broadly positive cues from Wall Street overnight. The benchmark S&P/ASX 200 is moving up to near the 8,900 level, with gains in mining and technology stocks partially offset by weakness in energy and financial stocks.

The benchmark S&P/ASX 200 Index is gaining 6.70 points or 0.08 percent to 8,869.50, after touching a high of 8,892.40 earlier. The broader All Ordinaries Index is up 7.60 points or 0.08 percent to 9,156.10. Australian stocks closed significantly higher on Monday.

Among the major miners, BHP Group is advancing more than 2 percent, Rio Tinto are gaining almost 2 percent, Fortescue is adding almost 1 percent and Mineral Resources is edging up 0.5 percent. Oil stocks are lower. Santos, Woodside Energy and Beach energy are declining more than 2 percent each, while Origin Energy is losing almost 1 percent.

Among tech stocks, Afterpay owner Block, Xero and Zip are gaining more than 1 percent each, while WiseTech Global is edging down 0.4 percent. Appen is flat.

Gold miners are mostly higher. Northern Star resources is adding almost 1 percent and Evolution Mining is gaining more than 1 percent, while Resolute Mining is declining almost 3 percent and Newmont is losing more than 2 percent. Gold Road Resources is flat.

Among the big four banks, Commonwealth Bank is down almost 1 percent and ANZ Banking is losing more than 1 percent, while Westpac and National Australia Bank are edging down 0.1 to 0.5 percent each.

In economic news, the total number of building permits issued in Australia was down a seasonally adjusted 6.0 percent on month in June, the Australian Bureau of Statistics said on Tuesday - coming in at 14,744. That was well shy of forecasts for an increase of 2.5 percent following the downwardly revised 10.0 percent drop in July (originally -8.2 percent). On a yearly basis, approvals rose 3.0 percent - again missing forecasts for a gain of 8.3 percent following the upwardly revised 9.2 percent gain in the previous month (originally 8.3 percent).

Private sector credit in Australia was up 0.6 percent on month in August, the Reserve Bank of Australia said on Tuesday - in line with expectations and easing from 0.7 percent in July. On an annual basis, private sector credit was up 7.2 percent.

Individually, housing credit rose 0.6 percent on month and 6.1 percent on year, while personal credit added 0.5 percent on month and 4.1 percent on year and business credit was up 0.6 percent on month and 9.9 percent on year. Broad money advanced 0.6 percent on month and 6.8 percent on year.

The RBA will wrap up its monetary policy later today and then announce its decision on interest rates. The RBA is expected to keep its benchmark lending rate unchanged at 3.60 percent

In other news, shares in Seven West Media group are surging more than 7 percent and Southern Cross Media are up almost 5 percent after the media companies agreed to an over $400 million merger that will see the Seven Network, West Australian Newspapers and the Triple M and Hit radio networks join as one consolidated company.

Shares in Restaurant Brands NZ are skyrocketing more than 59 percent after the food company received a takeover offer from its majority shareholder, Mexican company Finaccess Restauracion for NZ$5.05 or $4.44 per share.

Shares in Orthocell are soaring almost 17 percent after it initiated the commercialisation of its nerve repair device Remplir in Canada, securing exclusive distributorships in Alberta and British Columbia, with plans for further expansion.

Trading in shares of Star Entertainment Group has been paused pending a further announcement.

In the currency market, the Aussie dollar is trading at $0.657 on Tuesday.

The Japanese stock market is trading slightly lower on Tuesday, extending the losses in the previous two sessions, despite the broadly positive cues from Wall Street overnight. The Nikkei 225 is falling well below the 45,050 level, as traders reacted to downbeat retail sales and industrial output data, with weakness across most sectors led by index heavyweights, automakers and financial stocks.

The benchmark Nikkei 225 Index closed the morning session at 45,023.48 down 20.27 points or 0.05 percent, after hitting a low of 44,733.60 earlier. Japanese shares ended notably lower on Monday.

Market heavyweight SoftBank Group is losing more than 2 percent and Uniqlo operator Fast Retailing is down more than 1 percent. Among automakers, Honda is declining almost 2 percent and Toyota is also losing almost 2 percent.

In the tech space, Screen Holdings is edging up 0.3 percent, while Advantest is losing almost 2 percent and Tokyo Electron is down almost 1 percent.

In the banking sector, Mizuho Financial, Sumitomo Mitsui Financial and Mitsubishi UFJ Financial are edging down 0.2 to 0.4 percent each.

The major exporters are mostly lower. Panasonic and Canon are edging down 0.1 to 0.5 percent each, while Sony is losing more than 1 percent. Mitsubishi Electric is gaining almost 1 percent.

Among the other major losers, Inpex is declining almost 4 percent and Idemitsu Kosan is losing almost 3 percent.

Conversely, Ebara is jumping more than 6 percent and IHI is surging more than 5 percent, while Sumitomo Pharma and BayCurrent are gaining more than 3 percent each SMC and M3 are adding almost 3 percent each.

In economic news, industrial production in Japan was down a seasonally adjusted 1.2 percent on month in August, the Ministry of Economy, Trade and Industry said on Tuesday. That missed forecasts for a decline of 0.7 percent following the 1.2 percent drop in July. On a yearly basis, industrial production slumped 1.3 percent. The METI maintained its assessment of industrial production, saying that it continues to fluctuate indecisively. According to the METI's forecast, industrial production is expected to jump 4.1 percent in September and 1.2 percent in October.

The METI also said the value of retail sales in Japan was down a seasonally adjusted 1.1 percent on month in August - coming in at 12.683 trillion yen. That missed forecasts for an increase of 0.1 percent following the 0.4 percent gain in July. On a yearly basis, sales were also up 1.1 percent - missing expectations for a 1.0 percent gain following the 0.4 percent increase in the previous month.

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

Elsewhere in Asia, Indonesia and Taiwan are up 1.1 percent each, while New Zealand, China, Singapore, South Korea and Malaysia are lower by between 0.1 and 0.4 percent each. Hong Kong is relatively flat.

On Wall Street, stocks moved mostly higher during trading on Monday, adding to the gains posted during last Friday's session. The major averages all moved to the upside on the day, although buying interest was somewhat subdued.

The major averages finished the day in positive territory but off their early highs. The Nasdaq climbed 107.09 points or 0.5 percent to 22,591.15, the S&P 500 rose 17.51 points or 0.3 percent to 6,661.21 and the Dow inched up 68.78 points or 0.2 percent to 46,316.07.

The major European markets also moved to the upside on the day. While the U.K.'s FTSE 100 Index crept up by 0.2 percent, the French CAC 40 Index inched up by 0.1 percent and the German DAX Index closed just above the unchanged line.

Crude oil prices tumbled on Monday in the wake of oversupply concerns thanks to OPEC's plans for increasing output. West Texas Intermediate crude for November delivery was down $2.50 or 3.80 percent at $63.22 per barrel.