Asian Markets Track Global Markets Lower

(RTTNews) - Asian stock markets are mostly lower on Tuesday, following the broadly negative cues from global markets overnight, amid fading prospects of an early interest rate cut in March by the US Fed following recent upbeat U.S. economic data and hawkish comments from Fed Chair Jerome Powell. Asian markets closed mostly lower on Monday.

During an interview with "CBS 60 Minutes" on Sunday, Powell reiterated the central bank is unlikely to cut interest rates next month. Powell suggested the strength of the U.S. economy even amidst elevated rates will allow the Fed to proceed carefully.

Following last week's Fed meeting and Powell's subsequent comments, the chances of a March rate cut have fallen to just a 16.5 percent from the 46 percent a week ago, according to CME Group's FedWatch Tool.

Extending the losses in the previous session, the Australian stock market is notably lower on Tuesday, following the broadly negative cues from global markets overnight. The benchmark S&P/ASX 200 is falling below the 7,600 level, with losses across most sectors led by technology and mining stocks.

Traders are cautious ahead of the Reserve Bank of Australia's monetary policy decision later in the day, where it is expected to hold interest rates steady.

The benchmark S&P/ASX 200 Index is losing 38.40 points or 0.50 percent to 7,587.50, after hitting a low of 7,542.00 earlier. The broader All Ordinaries Index is down 40.20 points or 0.51 percent to 7,815.20. Australian stocks closed significantly lower on Monday.

Among the major miners, Fortescue Metals is losing more than 2 percent and Rio Tinto is edging down 0.3 percent, while BHP Group and Mineral Resources are declining more than 1 percent each.

Oil stocks are mostly lower. Santos is edging down 0.1 percent, while Origin Energy and Beach energy are losing almost 1 percent each. Woodside Energy is edging up 0.1 percent.

Among tech stocks, WiseTech Global is losing 3.5 percent and Zip is down almost 2 percent, while Afterpay owner Block and Xero are declining more than 2 percent each. Appen is gaining almost 2 percent.

Gold miners are mostly lower. Evolution Mining and Newmont are losing more than 1 percent each, while Northern Star resources is edging down 0.3 percent. Resolute Mining is gaining more than 1 percent and Gold Road Resources is edging up 0.1 percent.

Among the big four banks, Commonwealth Bank is losing more than 1 percent, while ANZ Banking, National Australia Bank and Westpac are edging down 0.2 to 0.4 percent each.

In other news, shares in Nick Scali are jumping 17 percent after the furniture retailer topped its first half profit guidance.

Shares in department store Myer are soaring 12 percent following a positive trading update. It expects net profit to be between $49 million and $53 million for the half year.

Shares in West African Resources are plunging 14 percent after the gold producer it said it expects higher all-in sustaining costs for this year at $1300 per ounce. The miner also lowered its production guidance to a range between 190,000 to 210,000 ounces.

In economic news, the total value of retail sales in Australia was down a seasonally adjusted 2.7 percent on month in December, the Australian Bureau of Statistics said on Tuesday - coming in at A$35.690 billion. That was well shy of forecasts for an increase of 0.1 percent following the 1.6 percent gain in November.

For the fourth quarter of 2023, retail sales rose 0.3 percent on quarter to A$98.301 billion versus expectations for a gain of 0.1 percent, which would have been unchanged from Q3 following a downward revision (originally up 0.2 percent).

In the currency market, the Aussie dollar is trading at $0.649 on Tuesday.

Giving up some of the gains in the previous two sessions, the Japanese stock market is significantly lower on Tuesday, with the Nikkei 225 falling to a tad above the 36,100 level, following the broadly negative cues from global markets overnight, with losses in index heavyweights, exporters and financial stocks partially offset by gains in technology stocks.

The benchmark Nikkei 225 Index closed the morning session at 36,114.06, down 240.10 points or 0.66 percent, after hitting a low of 36,065.98 earlier. Japanese shares ended notably higher on Monday.

Market heavyweight SoftBank Group is edging down 0.1 percent and Uniqlo operator Fast Retailing is losing almost 1 percent. Among automakers, Honda is losing almost 1 percent and Toyota is also declining almost 1 percent.

In the tech space, Advantest and Tokyo Electron are gaining almost 2 percent each, while Screen Holdings is advancing almost 3 percent.

In the banking sector, Sumitomo Mitsui Financial is edging down 0.2 percent, Mizuho Financial is losing more than 1 percent and Mitsubishi UFJ Financial declining almost 2 percent.

The major exporters are weak. Panasonic is losing more than 1 percent, Canon is declining almost 1 percent, Mitsubishi Electric is plunging more than 6 percent and Sony is slipping more than 2 percent.

Among the other major losers, Omron is plummeting more than 15 percent, Pacific Metals is plunging more than 10 percent, Yamato Holdings is sliding almost 9 percent, Aozora Bank is losing more than 4 percent and Yaskawa Electric is declining almost 4 percent, while SMC, Daikin Industries, Kubota, Seiko Epson and Astellas Pharma are all down more than 3 percent each. Toto, Tokyo Tatemono, Tosoh and M3 are slipping almost 3 percent each.

Conversely, UBE is gaining almost 5 percent, while Shiseido and East Japan Railway are adding more than 3 percent each. Nippon Electric Glass, Konica Minolta and Keio are advancing almost 3 percent each.

In economic news, the average of household spending in Japan was down 2.5 percent on year in December, the Ministry of Communications and Internal Affairs said on Tuesday - coming in at 329,518 yen. That missed expectations for a drop of 2.0 percent following the 2.9 percent decline in November. On a monthly basis, household spending sank 0.9 percent - again missing forecasts for an increase of 0.2 percent following the 1.0 percent decline in the previous month. The average of monthly income per household stood at 1,099,805 yen, down 7.2 percent on year.

In the currency market, the U.S. dollar is trading in the mid-148 yen-range on Tuesday.

Elsewhere in Asia, China, Singapore, South Korea and Malaysia are lower by between 0.1 and 0.6 percent each, while Hong Kong and Indonesia are up 1.6 and 0.3 percent, respectively. New Zealand is closed for Waitangi Day holiday and Taiwan is closed for Lunar New Year holidays until February 15.

On Wall Street, stocks showed a significant pullback during morning trading on Monday following the rally seen over the two previous sessions. The major averages staged a recovery attempt over the course of the afternoon but still finished the day in negative territory.

The tech-heavy Nasdaq dipped 31.28 points or 0.2 percent to 15,597.68 after falling as much as 1.0 percent in early trading. The S&P 500 fell 15.80 points or 0.3 percent to 4,942.81, while the narrower Dow remained more firmly in the red, closing down 274.30 points or 0.7 percent at 38,380.12.

The major European markets also saw modest weakness on the day. While the German DAX Index edged down by 0.1 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index both closed just below the unchanged line.

Crude oil prices settled higher on Monday as concerns about trade and supply disruptions outweighed a firm dollar. West Texas Intermediate Crude oil futures for March settled lower by $0.50 or 0.7 percent a barrel at $72.78 a barrel.