Asian Markets Trade Mixed

(RTTNews) - Asian stock markets are trading mixed on Thursday, following the mixed cues from Wall Street overnight, on increasing optimism the US Fed will lower interest rates a couple of times this year after report showed softer-than-expected US producer price figures, while traders await US consumer inflation data later in the day. Asian markets closed mostly higher on Wednesday.

Following the report, CME Group's FedWatch Tool is currently indicating a 92.1 chance of a quarter-point rate cut and a slim 7.9 percent chance of a half-point rate cut.

China and Hong Kong markets are tumbling after Mexico imposed tariffs up to 50 percent on over 1,400 products from China and other Asian countries, aiming to boost domestic production and offset U.S. trade pressures.

The Australian market is trading modestly lower on Thursday, reversing the gains in the previous session, following the mixed cues from Wall Street overnight. The benchmark S&P/ASX 200 is falling to 8,800 level, with weakness in financial and technology stocks partially offset by gains in mining and energy stocks. The benchmark S&P/ASX 200 Index is losing 30.40 points or 0.34 percent to 8,800.00, after hitting a low of 8,795.00 earlier. The broader All Ordinaries Index is down 27.70 points or 0.31 percent to 9,067.50. Australian stocks ended modestly higher on Wednesday.

Among major miners, Rio Tinto is edging up 0.1 percent, Fortescue is gaining almost 1 percent and Mineral Resources is advancing 2.5 percent, while BHP Group is edging down 0.1 percent.

Oil stocks are mostly higher. Beach energy is gaining almost 2 percent, Woodside Energy is adding almost 1 percent and Santos is edging up 0.2 percent, while Origin is edging down 0.2 percent.

In the tech space, Afterpay owner Block is losing more than 2 percent, Xero is edging down 0.3 percent, WiseTech Global is slipping almost 1 percent and Appen is declining almost 2 percent, while Zip are adding almost 1 percent.

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

Among gold miners, Northern Star Resources is gaining more than 3 percent, Evolution Mining is surging almost 5 percent, Gold Road Resources is up almost 1 percent, Newmont is adding almost 3 percent and Resolute Mining is climbing almost 6 percent.

In economic news, consumer inflation expectations in Australia jumped to 4.7 percent in September 2025 from August's five-month low of 3.9 percent. July's monthly CPI surged 2.8 percent on year, the fastest in a year, even as headline inflation in the second quarter slowed to 2.1 percent, its lowest since early 2021. Meanwhile, the trimmed-mean CPI, the RBA's preferred core gauge, eased to 2.7 percent, also at its weakest since late 2021 but still slightly above the 2 to 3 percent midpoint target.

In the currency market, the Aussie dollar is trading at $0.661 on Thursday.

The Japanese market is trading significantly higher on Thursday, extending the gains in the previous session, following the mixed cues from Wall Street overnight. The Nikkei 225 is moving well above the 44,250 level, with gains in index heavyweights and technology stocks partially offset by weakness in automakers and financial stocks.

The benchmark Nikkei 225 Index closed the morning session at 44,271.92, up 434.25 points or 0.99 percent, after touching a high of 44,288.47 earlier. Japanese shares ended significantly higher on Wednesday.

Market heavyweight SoftBank Group is climbing more than 8 percent, while Uniqlo operator Fast Retailing is losing almost 1 percent. Among automakers, Toyota is losing more than 1 percent and Honda is also down more than 1 percent.

In the tech space, Advantest is advancing more than 3 percent, Tokyo Electron is edging up 0.1 percent and Screen Holdings is adding almost 3 percent.

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

Among the major exporters, Sony is losing almost 1 percent and Canon is edging down 0.1 percent, while Mitsubishi Electric is gaining more than 1 percent and Panasonic is edging up 0.5 percent.

Among other major gainers, Mitsui Mining & Smelting is gaining more than 4 percent and Kansai Electric Power is adding almost 4 percent, while Nippon Electric Glass and Fuji Electric are advancing more than 3 percent. Fujikura and Ryohin Keikaku are up almost 3 percent each.

Conversely, there are no other major losers.

In economic news, producer prices in Japan were down 0.2 percent on month in August, the Bank of Japan said on Thursday. That missed expectations for a decline of 0.1 percent and down from the upwardly revised 0.3 percent gain in July (originally 0.2 percent).

On a yearly basis, producer prices were up 2.7 percent - matching forecasts and up from the downwardly revised 2.5 percent increase in the previous month (originally 2.6 percent). Export prices were down 0.1 percent on month and 1.1 percent on year, the central bank said, while import prices were flat on month and down 4.6 percent on year.

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

Elsewhere in Asia, New Zealand, Hong Kong and Malaysia are higher by between 0.5 and 0.9 percent each. China is up 0.2 percent, while Indonesia and Taiwan are up 1.2 and 1.0 percent, respectively. Singapore and South Korea are flat.

On Wall Street, stocks moved mostly higher early in the session on Wednesday but gave back ground over the course of the trading day. The S&P 500 and the Nasdaq pulled back well off their best levels but still managed to end the day at new record closing highs.

The S&P 500 rose 19.43 points or 0.3 percent to 6,532.04 and the tech-heavy Nasdaq inched up 6.57 points or less than a tenth of a percent to 21,886.06, while the narrower Dow slid 220.42 points or 0.5 percent to 45,490.92.

The major European markets also turned in a mixed performance on the day. While the French CAC 40 Index crept up by 0.2 percent, the U.K.'s FTSE 100 Index edged down by 0.2 percent and the German DAX Index fell by 0.4 percent.

Crude oil prices surged on Wednesday on geopolitical tensions in the Middle East and Europe, along with inflation data from the U.S. that has reinforced interest rate cut expectations. West Texas Intermediate crude for October delivery was up $1.07 or 1.71 percent at $63.70 per barrel.