Asian Markets Trade Mostly Lower

(RTTNews) - Asian stock markets are trading mostly lower on Friday, following the broadly negative cues overnight from global markets, dragged by materials and energy stocks amid tumbling commodity prices. Traders also remain concerned about the global economic outlook and the possibility of a recession as central bank chiefs have reaffirmed their resolve to pare inflation despite threats to economic growth. Asian markets ended mixed on Thursday.

The Australian stock market is slightly higher on Friday, recouping some of the losses in the previous two sessions, with the benchmark S&P/ASX 200 below the 6,600 level, despite the broadly negative cues overnight from global markets, supported by financial and technology stocks, partially offset by weakness in materials and energy stocks amid tumbling commodity prices.

The benchmark S&P/ASX 200 Index is gaining 10.20 points or 0.16 percent to 6,578.30, after touching a high of 6,623.90 earlier. The broader All Ordinaries Index is up 15.20 points or 0.23 percent to 6,761.70. Australian markets ended sharply lower on Thursday.

Among major miners, Rio Tinto is losing 1.5 percent, BHP Group is down more than 2 percent and OZ Minerals is declining almost 1 percent, while Mineral Resources and Fortescue Metals are slipping more than 1 percent each.

Oil stocks are lower. Origin Energy is edging down 0.2 percent, while Woodside Energy is losing more than 1 percent, Santos is declining 1.5 percent and Beach energy is down almost 1 percent.

Among tech stocks, WiseTech Global is gaining almost 3 percent, Xero is advancing almost 2 percent, Appen is adding more than 3 percent and Zip is surging almost 7 percent, while Afterpay owner Block is losing almost 2 percent. Among the big four banks, Commonwealth Bank is edging up 0.4 percent and National Australia Bank is gaining almost 2 percent, while Westpac and ANZ Banking are adding almost 1 percent each.

Gold miners are mostly higher. Northern Star Resources and Evolution Mining are gaining more than 1 percent each, while Gold Road Resources is adding more than 2 percent and Resolute Mining is up almost 1 percent. Newcrest Mining is losing more than 1 percent.

In other news, shares in Austal are soaring more than 22 percent after the shipbuilder secured a $3.3 billion contract to design and construct 11 offshore patrol cutters for the U.S. Coast Guard.

Shares in Openpay Group are surging 25 percent after the Australian buy-now-pay-later (BNPL) firm said it would pause its U.S. operations and cut workforce there to now focus more funding and resources on its Australian operations.

In economic news, the manufacturing sector in Australia continued to expand in June, the latest survey from S&P Global showed on Friday, with a manufacturing PMI score of 56.2. That's up from 55.7 in May and it moves further above the boom-or-bust line of 50 that separates expansion from contraction. This signaled a twenty-fifth consecutive month in which the PMI has printed above the 50.0 neutral threshold, signaling a sustained improvement in the health of the Australian manufacturing sector.

In the currency market, the Aussie dollar is trading at $0.687 on Friday.

The Japanese stock market is significantly lower on Friday after opening in the green, extending the losses in the previous two sessions, with the benchmark Nikkei 225 falling below the 26,200 level, following the broadly negative cues overnight from global markets, dragged by technology and energy stocks.

The benchmark Nikkei 225 Index closed the morning session at 26,159.53, down 233.51 points or 0.88 percent, after hitting a low of 26,148.61 earlier. Japanese shares closed sharply lower on Thursday.

Market heavyweight SoftBank Group is edging down 0.5 percent and Uniqlo operator Fast Retailing is losing more than 2 percent. Among automakers, Honda is declining more than 1 percent and Toyota is edging down 0.5 percent.

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

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

Among major exporters, Panasonic is edging down 0.2 percent and Sony is declining more than 1 percent, while Mitsubishi Electric is adding almost 1 percent and Canon is gaining more than 1 percent.

Among the other major losers, Tokyo Gas is plunging 6.5 percent, Osaka Gas is losing almost 6 percent, Mitsui & Co. is slipping almost 5 percent and Mitsubishi is down more than 4 percent, while Inpex, JGC Holdings and Bridgestone are declining almost 3 percent each.

Conversely, Takashimaya is soaring almost 10 percent, while J. Front Retailing and Seiko Epson are gaining more than 3 percent each.

In economic news, the unemployment rate in Japan came in at a seasonally adjusted 2.6 percent in May, the Ministry of Internal Affairs and Communications said on Friday. That was higher than forecasts for 2.5 percent, which would have been unchanged from the April reading. The job-to-applicant ratio was 1.24, in line with forecasts and up from 1.23 in the previous month. The participation rate was 62.7 percent in May, up from 62.6 percent in April.

Meanwhile, overall consumer prices in Japan were up 2.3 percent on year in June, the Ministry of Internal Affairs and Communications said on Friday. That was in line with expectations and down from 2.4 percent in May. On a monthly basis, overall consumer prices were up a seasonally adjusted 0.1 percent. Core CPI, which strips out volatile food prices, was up 2.1 percent on year - in line with expectations and up from 1.9 percent in the previous month.

The manufacturing sector in June continued to expand in Japan, albeit at a slower pace, the latest survey from Jibun Bank showed on Friday with a manufacturing PMI score of 52.7.That's down from 53.3 in May although it remains above the boom-or-bust line of 50 that separates expansion from contraction.

The Bank of Japan's quarterly Tankan Survey of business sentiment showed on Friday that large manufacturing in Japan weakened in the second quarter, with a diffusion index score of +9. That missed forecasts for a reading of +13 and was down from +14 three months ago. The outlook came in at +10, missing expectations for +14 and up from +9 in the previous quarter. The large non-manufacturers index came in at +13, missing forecasts for +14 and up from +9 in the previous month. The outlook was +13, missing forecasts for +17 and up from +7 three months earlier.

In the currency market, the U.S. dollar is trading in the lower 135 yen-range on Friday.

Elsewhere in Asia, Taiwan is down 1.2 percent, while China, South Korea and Indonesia are lower by between 0.1 and 0.4 percent each. Singapore and Malaysia are up 0.1 and 0.3 percent, respectively. New Zealand is relatively flat. Hong Kong is closed in observance of SAR Establishment Day.

On Wall Street, stocks fluctuated after an early sell-off on Thursday but maintained a negative bias throughout the session. The major averages all finished the day notably lower after ending Wednesday's trading narrowly mixed.

After falling nearly 600 points in early trading, the Dow regained some ground but still closed down 253.88 points or 0.8 percent at 30,775.43. The Nasdaq also tumbled 149.16 points or 1.3 percent to 11,028.74, while the S&P 500 slumped 33.45 points or 0.9 percent to 3,785.38.

The major European markets all also moved sharply lower on the day. While the U.K.'s FTSE 100 Index plunged 2 percent, the French CAC 40 Index and the German DAX Index tumbled by 1.8 percent and 1.7 percent, respectively.