Asian Markets Track Global Markets Higher

(RTTNews) - Asian stock markets are trading mostly higher on Friday, following the broadly positive cues from global markets overnight, amid rising optimism about interest rate cuts by major global central banks continued to inspire traders to get back into the markets. European Central Bank lowered its annual inflation forecast while announcing its widely expected decision to leave rates unchanged. US Fed Chair Jerome Powell told Congress on Thursday that rate cuts "can and will" begin this year. Asian markets ended mixed on Thursday.

Adding to the gains in the previous two sessions, the Australian stock market is significantly higher on Friday, following the broadly positive cues from global markets overnight. The benchmark S&P/ASX 200 is moving above the 7,800 level to all-time record highs, with gains across most sectors led by financial and technology stocks.

The benchmark S&P/ASX 200 Index is gaining 77.40 points or 1.00 percent to 7,841.10, after touching an all-time record high of 7,841.70 earlier. The broader All Ordinaries Index is up 75.30 points or 0.94 percent to 8,102.00. Australian markets ended modestly higher on Thursday.

Among major miners, BHP Group and Fortescue Metals are edging down 0.1 to 0.5 percent each, while Rio Tinto and Mineral Resources are edging up 0.1 to 0.4 percent each. Oil stocks are mostly higher. Woodside Energy is gaining almost 1 percent, Beach energy is advancing more than 2 percent and Origin Energy is edging up 0.5 percent, while Santos is losing almost 1 percent.

Among tech stocks, WiseTech Global is gaining more than 1 percent and Appen is advancing almost 3 percent, while Afterpay owner Block and Xero are adding almost 1 percent each. Zip is losing more than 1 percent.

Among the big four banks, National Australia Bank is gaining 1.5 percent and Westpac is adding almost 2 percent, while Commonwealth Bank and ANZ Banking are up more than 1 percent each. Gold miners are mostly higher. Evolution Mining is gaining more than 1 percent, Northern Star Resources is advancing almost 1 percent and Resolute Mining is edging up 0.5 percent, while Gold Road Resources is losing almost 1 percent and Newmont is edging down 0.2 percent.

In other news, shares in Magmatic Resources are skyrocketing 49 percent after Fortescue Metals took a 19.9 percent stake in the New South Wales copper-gold explorer.

In the currency market, the Aussie dollar is trading at $0.662 on Friday.

Recouping some of the losses in the previous three sessions, the Japanese stock market is significantly higher on Friday, following the broadly positive cues from global markets overnight. The benchmark Nikkei 225 is moving above the 39,900 level, with gains across most sectors led by index heavyweights, financial and technology stocks.

The benchmark Nikkei 225 Index closed the morning session at 39,935.24, up 336.53 points or 0.85 percent, after touching a high of 39,951.59 earlier. Japanese stocks closed significantly lower on Thursday.

Market heavyweight SoftBank Group is gaining more than 2 percent and Uniqlo operator Fast Retailing is adding almost 1 percent. Among automakers, Honda is edging up 0.5 percent and Toyota is also edging up 0.4 percent.

In the tech space, Advantest is gaining more than 3 percent, Screen Holdings is adding almost 2 percent and Tokyo Electron is advancing almost 3 percent.

In the banking sector, Mitsubishi UFJ Financial is edging up 0.4 percent, Sumitomo Mitsui Financial is advancing almost 2 percent and Mizuho Financial is gaining almost 4 percent.

Among major exporters, Mitsubishi Electric is gaining more than 1 percent, Canon is adding almost 1 percent and Panasonic is edging up 0.2 percent, while Sony is edging down 0.5 percent.

Among other major gainers, Osaka Gas is surging more than 5 percent, while Kajima and Taisei are gaining more than 4 percent each. Eisai is up almost 4 percent and Obayashi are adding more than 3 percent, while Fuji Electric, Pacific Metals and Nichirei are advancing almost 3 percent each.

Conversely, Keisei Electric Railway is losing almost 6 percent, while Oriental Land, Tokyo Tatemono and Isuzu Motors are declining more than 3 percent each. Keio is down almost 3 percent.

In economic news, the average of household spending was down 6.3 percent on year in January, the Ministry of Economy, Trade and Industry said on Friday - coming in at 289,467 yen. That missed expectations for a decline of 4.1 percent following the 2.5 percent drop in December. On a monthly basis, household spending slipped 2.1 percent - again shy of forecasts for an increase of 0.4 percent after sinking 0.9 percent in the previous month. The average of monthly income per household stood at 497,383 yen, down 2.1 percent on year.

Further, Japan posted a current account surplus of 438.2 billion yen in January, the Ministry of Finance said on Friday. That exceeded expectations for a deficit of 330 billion yen following the 744 billion yen surplus in December. Imports were down 12.1 percent on year to 8.783 trillion yen and exports gained an annual 7.6 percent at 7.340 trillion yen for a trade deficit of 1.442 trillion yen. The capital account showed a deficit of 100 million yen, while the financial account had a surplus of 1.808 trillion yen.

In the currency market, the U.S. dollar is trading in the higher 147 yen-range on Friday.

Elsewhere in Asia, South Korea is up 1.1 percent, while New Zealand, Singapore, Hong Kong, Taiwan, Malaysia and Indonesia are higher by between 0.1 and 0.8 percent each. China is bucking the trend and is down 0.3 percent. On Wall Street, stocks moved sharply higher during trading on Thursday extending the rebound seen during Wednesday's session. The major averages further offset the notable pullback seen to start the week, with the Nasdaq and the S&P 500 bouncing back to record intraday highs.

The tech-heavy Nasdaq surged 241.83 points or 1.5 percent to 16,273.38, ending the day just shy of last Friday's record closing high, while the S&P 500 managed to set a new record closing high, jumping 52.60 points or 1.0 percent to 5,157.36. The narrower Dow posted a more modest gain, rising 130.30 points or 0.3 percent to 38,791.35.

The major European markets all also moved to the upside on the day. While the U.K.'s FTSE 100 Index edged up by 0.2 percent, the German DAX Index and the French CAC 40 Index advanced by 0.7 percent and 0.8 percent, respectively.

Crude oil futures drifted lower on Thursday amid some concerns about the outlook for demand, although the downside was limited by a weaker greenback. West Texas Intermediate Crude oil futures for April fell $0.20 or 0.3 percent at $78.93 a barrel.