Asian Markets Trade Mixed

(RTTNews) - Following the sell-off on Wall Street overnight, Asian stock markets are trading mixed on Thursday, as traders react to the US Fed's highly anticipated monetary policy announcement and accompanying statements. The Fed pushed back against bets on an interest rate cut in March. Asian Markets closed mostly lower on Wednesday.

The Fed left interest rates unchanged and maintained the target range for the federal funds rate at 5.25 to 5.50 percent to support its dual goals of maximum employment and inflation at the rate of 2 percent over the longer run.

The Fed said it does not expect it will be appropriate to lower rates until it has gained greater confidence that inflation is moving sustainably toward 2 percent. It acknowledged that inflation has eased over the past year but said it remains elevated.

Fed Chair Jerome Powell said he doesn't think it's likely the central bank will reach that level of confidence by the time of the March meeting.

Following the announcement, the chances of a 25 basis point rate cut in March have fallen to 36.5%, according to CME Group's FedWatch Tool.

The Australian market is sharply lower on Thursday, snapping an eight-session winning streak, following the broadly negative cues from global markets overnight. The benchmark S&P/ASX 200 is falling below the 7,600 level, with weakness across most sectors led by technology, energy and mining stocks.

The markets mirrored the sharp sell-off on Wall Street overnight after the US Fed pushed back against bets on an interest rate cut in March.

The benchmark S&P/ASX 200 Index is losing 86.70 points or 1.13 percent to 7,594.00, after hitting a low of 7,579.50 earlier. The broader All Ordinaries Index is down 89.00 points or 1.13 percent to 7,823.80. Australian stocks ended sharply higher on Wednesday.

Among major miners, BHP Group and Rio Tinto are losing almost 1 percent each, while Fortescue Metals is down more than 2 percent and Mineral Resources is declining 3.5 percent.

Oil stocks are mostly lower. Woodside Energy is losing almost 1 percent, Santos is down more than 1 percent and Origin Energy is declining almost 2 percent, while Beach energy is edging up 0.3 percent.

In the tech space, Appen is declining almost 5 percent, Afterpay owner Block is losing more than 3 percent, Xero is down almost 2 percent, Zip is slipping more than 2 percent and WiseTech Global is sliding almost 3 percent.

Among the big four banks, Commonwealth Bank is losing almost 2 percent and ANZ Banking is down almost 1 percent, while Westpac and National Australia Bank are declining more than 1 percent each.

Among gold miners, Evolution Mining is losing almost 1 percent, Gold Road Resources is sliding almost 3 percent and Resolute Mining is declining almost 6 percent, while Northern Star Resources and Newmont are edging up 0.3 to 0.4 percent each.

In economic news, the manufacturing sector in Australia climbed up into expansion territory in January, the latest survey from Judo Bank revealed on Thursday with a manufacturing PMI score of 50.1. That's up from 47.6 in December, and it moves above the boom-or-bust line of 50 that separates expansion from contraction. The total number of building approvals issued in Australia tumbled a seasonally adjusted 9.5 percent on month in December, the Australian Bureau of Statistics said on Thursday - coming in at 13,085. That was well shy of expectations for a decline of 0.5 percent following the 0.3 percent increase in November. On a yearly basis, permits slipped 2.0 percent after dipping 1.2 percent in the previous month.

The ABS also said export prices in Australia rose 5.6 percent on quarter in the fourth quarter of 2023, the Australian Bureau of Statistics said on Thursday - after slipping 3.1 percent in the previous quarter. Import prices rose 1.1 percent on quarter after adding 0.8 percent in Q3. On a yearly basis, export prices were down 4.8 percent and import prices fell 3.1 percent.

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

Giving up some of the gains in the previous three sessions, the Japanese market is significantly lower on Thursday, following the broadly negative cues from global markets overnight. The Nikkei 225 is falling below the 36,000 mark, with weakness across most sectors led by index heavyweights and financial stocks.

The markets mirrored the sharp sell-off on Wall Street overnight after the US Fed pushed back against bets on an interest rate cut in March.

The benchmark Nikkei 225 Index closed the morning session at 35,957.82, down 328.89 points or 0.91 percent, after hitting a low of 35,940.06 earlier. Japanese shares ended notably higher on Wednesday.

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

In the tech space, Advantest is gaining more than 1 percent and Screen Holdings is adding more than 3 percent, while Tokyo Electron is losing almost 1 percent.

In the banking sector, Sumitomo Mitsui Financial is losing 1.5 percent, Mitsubishi UFJ Financial is down almost 1 percent and Mizuho Financial is declining almost 2 percent.

Among the major exporters, Canon is edging down 0.1 percent and Panasonic is losing more than 2 percent, while Mitsubishi Electric and Sony are declining almost 2 percent each.

Among other major losers, Aozora Bank is plummeting 21.5 percent, Sumitomo Pharma is plunging more than 18 percent, M3 is sliding almost 13 percent, Sumitomo Chemical is declining almost 6 percent and Tokuyama is losing almost 5 percent, while Resona Holdings, Toto, Rakuten Group, and Lasertec are all down more than 4 percent each. Alps Alpine is slipping almost 4 percent, while Hitachi Construction Machinery, IHI, Sumitomo Mitsui Trust and Konami Group are all down more than 3 percent each.

Conversely, Nomura Holdings, TDK and East Japan Railway are surging almost 6 percent each, while Daiichi Sankyo and OKUMA are surging more than 5 percent each. Fuji Electric is gaining almost 5 percent and West Japan Railway is adding more than 4 percent, while CyberAgent and Nitto Denkoare adding more than 3 percent each. Chubu Electric Power and Nisshin Seifun Group are advancing almost 3 percent each.

In economic news, the manufacturing sector in Japan continued to contract in January, albeit at a marginally slower rate, the latest survey from Jibun Bank revealed on Thursday with a manufacturing PMI score of 48.0. That's up from 47.9 in December, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction.

In the currency market, the U.S. dollar is trading in the higher 146 yen-range on Thursday.

Elsewhere in Asia, Hong Kong is up 2.1 percent and South Korea is up 1.3 percent, while New Zealand, China and Indonesia are higher by between 0.2 and 0.5 percent each. Taiwan and Singapore are down 0.1 and 0.3 percent, respectively. Malaysia is closed for Federal Territory Day holiday.

On Wall Street, stocks moved sharply lower over the course of the trading day on Wednesday, with the major averages all moving to the downside following the mixed performance seen in the previous session. The tech-heavy Nasdaq posted a particularly steep loss, extending the notable pullback seen on Tuesday.

The major averages finished the session near their worst levels of the day. The Nasdaq plunged 345.89 points or 2.2 percent to 15,164.01, the S&P 500 tumbled 79.32 points or 1.6 percent to 4,845.65 and the Dow slid 317.01 points or 0.8 percent to 38,150.30.

The major European markets all also moved to the downside on the day. While the U.K.'s FTSE 100 Index slid by 0.5 percent, German DAX Index and the French CAC 40 Index fell by 0.4 percent and 0.3 percent, respectively.

Crude oil prices slumped Wednesday, weighed down by data showing an unexpected jump in U.S. crude inventories last week, and concerns about the outlook for demand after data showed another contraction in Chinese manufacturing activity. West Texas Intermediate Crude oil futures for March fell $1.97 or 2.5 percent at $75.85 a barrel.