Asian Markets Track Wall Street Higher

(RTTNews) - Mirroring the broadly positive cues from Wall Street overnight, Asian stock markets are trading mostly higher on Thursday, amid optimism about near-term rate cuts by the US Fed ahead of the release of key U.S. inflation data later in the day and tomorrow, which will affect the outlook for interest rates. Asian Markets closed mostly lower on Wednesday.

With economists expecting the reports to show slowdowns in the annual rate of core price growth, the data could bolster optimism about near-term rate cuts by the Fed.

Ahead of the reports, CME Group's FedWatch Tool is currently indicating a 64.5 percent chance the Fed will cut rates by a quarter point at its March meeting.

The Australian stock market is modestly higher on Thursday, recouping the slight losses in the previous session, following the broadly positive cues from Wall Street overnight. The benchmark S&P/ASX 200 is moving a tad above the 7,500 level, with gains in financial and technology stocks partially offset by losses in energy and mining stocks.

The benchmark S&P/ASX 200 Index is gaining 33.40 points or 0.45 percent to 7,501.90, after touching a high of 7,508.50 earlier. The broader All Ordinaries Index is up 30.60 points or 0.40 percent to 7,733.30. Australian stocks ended slightly lower on Wednesday.

Among major miners, BHP Group and Rio Tinto are edging down 0.2 to 0.4 percent each, while Fortescue Metals is losing almost 2 percent. Mineral Resources is gaining almost 1 percent.

Oil stocks are mixed. Woodside Energy and Origin Energy are edging up 0.2 to 0.3 percent each, while Santos is losing almost 1 percent and Beach energy is declining more than 1 percent.

In the tech space, Appen is declining almost 3 percent and Afterpay owner Block is losing almost 2 percent, while Xero and Zip are edging up 0.4 percent each. WiseTech Global is gaining almost 1 percent.

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

Among gold miners, Evolution Mining, Gold Road Resources and Northern Star Resources are gaining more than 1 percent each, while Resolute Mining is advancing almost 1 percent. Newmont is losing almost 1 percent each.

In economic news, Australia posted a merchandise trade surplus of A$11.437 billion in November, the Australian Bureau of Statistics said on Thursday. That exceeded expectations for a surplus of A$7.50 billion following the upwardly revised A$7.660 billion surplus in October (originally A$7.129 billion).

In the currency market, the Aussie dollar is trading at $0.671 on Thursday.

Extending the gains in the previous three sessions, the Japanese market is sharply higher on Thursday, following the broadly positive cues from Wall Street overnight. The Nikkei 225 is adding 2 percent and is moving above the 35,100 level to fresh 34-year highs, with gains across most sectors led by index heavyweights, exporters and financial stocks.

The benchmark Nikkei 225 Index closed the morning session at 35,110.52, up 668.80 points or 1.94 percent, after touching a high a 34-year high of 35,140.63 earlier. Japanese shares ended sharply higher on Wednesday.

Market heavyweight SoftBank Group is gaining more than 1 percent and Uniqlo operator Fast Retailing is adding more than 1 percent. Among automakers, Toyota is gaining more than 4 percent and Honda is adding almost 3 percent.

In the tech space, Advantest is gaining almost 2 percent, Tokyo Electron is adding more than 1 percent and Screen Holdings is up almost 1 percent.

In the banking sector, Sumitomo Mitsui Financial and Mitsubishi UFJ Financial are gaining almost 2 percent each, while Mizuho Financial is adding more than 2 percent.

Among the major exporters, Canon is edging up 0.4 percent, Mitsubishi Electric is gaining more than 3 percent, Panasonic is advancing almost 5 percent and Sony is adding more than 3 percent.

Among other major gainers, SMC is surging almost 5 percent, while Tokyo Electric Power, Subaru, Mazda Motor, Mitsui Mining & Smelting and Itochu are gaining more than 4 percent each. Hitachi, Mitsubishi Heavy Industries, Concordia Financial and Suzuki Motor are adding almost 4 percent each, while Toppan Holdings and Daiichi Sankyo are advancing more than 3 percent each.

Conversely, Rakuten Group is losing almost 3 percent.

In the currency market, the U.S. dollar is trading in the mid-145 yen-range on Thursday.

Elsewhere in Asia, Hong Kong is up 1.5 percent, while Singapore, South Korea, Taiwan and Indonesia are higher by between 0.4 and 0.5 percent each. New Zealand, China and Malaysia are down 0.1 percent each.

On Wall Street, stocks moved to the upside during trading on Wednesday after ending the previous session on opposite sides of the unchanged line. With the upward move, the tech-heavy Nasdaq closed higher for the fourth straight session.

The major averages pulled back off their best levels in late-day trading but remained in positive territory. The Nasdaq advanced 111.94 points or 0.8 percent to 14,969.65, the S&P 500 climbed 26.95 points or 0.6 percent to 4,783.45 and the Dow rose 170.57 points or 0.5 percent to 37,695.73.

Meanwhile, the major European markets finished the day little changed. While the U.K.'s FTSE 100 Index declined by 0.4 percent, the French CAC 40 Index and the German DAX Index both ended the day roughly flat.

Crude oil prices dropped on Wednesday after data showed an unexpected increase in U.S. crude inventories. West Texas Intermediate Crude oil futures for February delivery ended down $0.87 at $71.37 a barrel.