Asian Markets Trade Mixed

(RTTNews) - Asian stock markets are trading mixed on Wednesday, following the mixed cues from Wall Street overnight, as traders react to a report showing a continued increase in U.S. industrial production in the month of March, which added to concerns about the outlook for interest rates. Traders also remained cautious amid the geopolitical tensions in the middle-east. Asian markets closed mostly lower on Tuesday.

US Fed Chair Jerome Powell indicated in remarks that rates are likely to remain higher for longer amid a "lack of progress" toward reaching the central bank's inflation goal. Fed officials, including Powell, have repeatedly stated they need "greater confidence" inflation is slowing before they consider cutting interest rates.

According to CME Group's FedWatch Tool, the chances of a 25 basis point rate cut in June have tumbled to 16.4 percent compared to 56.1 percent just a week ago.

Australian shares are trading modestly higher on Wednesday, snapping the four-session losing streak, with the benchmark S&P/ASX 200 staying above the 7,600 level, following the mixed cues from Wall Street overnight, with gains in gold miners, financial and energy stocks nearly offset by losses in iron ore miners.

The benchmark S&P/ASX 200 Index is gaining 15.70 points or 0.21 percent to 7,628.20, after touching a high of 7,636.60 earlier. The broader All Ordinaries Index is up 22.00 points or 0.28 percent to 7,884.30. Australian stocks ended sharply lower on Tuesday.

Among major miners, BHP Group and Mineral Resources are losing almost 1 percent each, while Fortescue Metals is edging down 0.3 percent and Rio Tinto is down more than 1 percent after reporting a drop in iron ore production and shipments in the first quarter of 2024.

Oil stocks are mostly higher. Santos, Beach energy and Woodside Energy are edging up 0.1 to 0.3 percent each, while Origin Energy is gaining almost 1 percent. In the tech space, Afterpay owner Block and Zip are gaining more than 1 percent each, while WiseTech Global is edging up 0.3 percent. Appen is declining 1.5 percent and Xero is edging down 0.3 percent. Among the big four banks, Commonwealth Bank and ANZ Banking are edging up 0.4 to 0.5 percent each, while Westpac is gaining almost 1 percent. National Australia Bank is flat.

Among gold miners, Resolute Mining and Gold Road Resources are gaining almost 2 percent each, while Northern Star Resources is edging up 0.3 percent and Evolution Mining is advancing more than 5 percent on an upbeat quarterly report. Newmont is edging down 0.5 percent.

In other news, shares in Droneshield are soaring 14 percent after the defence technology developer's Belgium and Luxembourg partner were awarded a NATO contract.

Shares in Lynas Rare Earths are up 3.3 percent after Australia's richest person Gina Rinehart's Hancock Prospecting acquired a sizable stake in the company.

Shares in Bank of Queensland tumbled 6 percent the bank reported cash earnings have fallen by a third in the six months to February but still came in above analysts' forecasts.

In the currency market, the Aussie dollar is trading at $0.642 on Wednesday.

The Japanese stock market is modestly lower on Wednesday, adding to the losses in the previous two sessions, following the mixed cues from Wall Street overnight. The Nikkei 225 is falling to stay a tad above the 38,400 level, with weakness across most sectors led by index heavyweights and technology stocks.

The benchmark Nikkei 225 Index closed the morning session at 38,404.45, down 66.75 points or 0.17 percent, after hitting a low of 38,160.83 earlier. Japanese stocks ended sharply lower on Tuesday.

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

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

In the banking sector, Mizuho Financial is losing almost 2 percent, while Sumitomo Mitsui Financial and Mitsubishi UFJ Financial are down almost 1 percent each.

Among the major exporters, Sony and Panasonic are losing more than 2 percent each, while Canon is edging down 0.3 percent and Mitsubishi Electric is declining more than 1 percent.

Among other major losers, LY is slipping more than 5 percent, while Chubu Electric Power and Oriental Land are down more than 4 percent each. Kansai Electric Power, Tokyo Electric Power, Comsys Holdings, ENEOS Holdings and J. Front Retailing are declining almost 4 percent each, while Omron, Mitsubishi Motors and Mazda Motor are losing more than 3 percent each. Sumitomo Metal Mining, JGC Holdings, Oji Holdings and Inpex are sliding almost 3 percent each.

Conversely, Resonac Holdings is soaring more than 12 percent, Kawasaki Kisen Kaisha is gaining more than 4 percent, Fujikura is adding almost 4 percent and Kawasaki Heavy Industries is up almost 3 percent.

In economic news, Japan posted a merchandise trade surplus of 366.5 billion yen in March, the Ministry of Finance said on Wednesday. That beat forecasts for a surplus of 107.4 billion yen following the upwardly revised 377.8 billion yen deficit in February (originally -379.4 billion yen).

Exports were up 7.3 percent on year to 9.469 trillion yen after adding 7.8 percent in the previous month. Imports slumped an annual 4.9 percent to 9.103 trillion yen after rising 0.5 percent a month earlier.

In the currency market, the U.S. dollar is trading in the higher 154 yen-range on Wednesday.

Elsewhere in Asia, Taiwan and China are up 1.4 and 1.2 percent, respectively. New Zealand, Singapor, and Indonesia are higher by between 0.2 and 0.4 percent each. South Korea is bucking the trend and is down 0.3 percent. Hong Kong and Malaysia are relatively flat. On the Wall Street, stocks showed a lack of direction over the course of the trading day on Tuesday, as traders took a breather following the sell-off seen over the two previous sessions. The major averages bounced back and forth across the unchanged line before eventually closing narrowly mixed.

While the Dow rose 63.86 points or 0.2 percent to 37,798.97, snapping a six-session losing streak, the Nasdaq edged down 19.77 points or 0.1 percent to 15,865.25 and the S&P 500 slipped 10.41 points or 0.2 percent to 5,051.41.

Meanwhile, the major European markets also showed significant moves to the downside on the day. While the U.K.'s FTSE 100 Index tumbled by 1.8 percent, the German DAX Index and the French CAC 40 Index both slumped by 1.4 percent.

Crude oil prices showed a lack of direction on Tuesday before easing slightly as Treasury Secretary Janet Yellen indicated the U.S. plans to impose new sanctions on Iran in response to the country's attack on Israel. West Texas Intermediate crude for May delivery dipped $0.05 or 0.1 percent to $85.36 a barrel.