Asian Markets Track Wall Street Higher

(RTTNews) - Asian stock markets are trading mostly higher on Wednesday, following the broadly positive cues from Wall Street overnight, as traders in the region cheered the news of a ceasefire between warring Israel and Iran is now in effect. While both sides have accused each other of violating the ceasefire, traders appeared to remain optimistic about easing tensions in the Middle East. Asian markets closed mostly higher on Tuesday.

US Fed Chair Jerome Powell hinted that lower inflation and weaker labor hiring could lead to an earlier rate cut, prompting traders to price in two Fed cuts by the end of 2025, with a first move in September far more likely than next month. Powell added that the rate cuts can wait until the economic effects of tariff increases are better known.

Australian shares are slightly lower in choppy trading on Wednesday after opening in the green, reversing some of the gains in the previous session, despite the broadly positive cues from Wall Street overnight. The benchmark S&P/ASX 200 is falling to 8,550 level, with weakness in mining and energy stocks partially offset by gains in financial and technology stocks.

The benchmark S&P/ASX 200 Index is losing 4.60 points or 0.05 percent to 8,550.00, after touching a high of 8,577.30 earlier. The broader All Ordinaries Index is down 4.20 points or 0.05 percent to 8,770.30. Australian stocks ended significantly higher on Tuesday.

Among major miners, BHP Group is down almost 2 percent, Rio Tinto is slipping almost 1 percent, Fortescue metals is losing more than 2 percent and Mineral Resources is tumbling almost 5 percent.

Oil stocks are mostly lower. Woodside Energy is losing almost 1 percent, Beach energy is declining almost 2 percent and Santos is edging down 0.1 to 0.5 percent, while Origin Energy is edging up 0.5 percent.

In the tech space, Afterpay owner Block and Zip are gaining more than 1 percent each, while Appen is surging almost 8 percent and Xero are edging up 0.4 percent. WiseTech Global is losing more than 1 percent.

Among the big four banks, Commonwealth Bank is advancing more than 1 percent and ANZ Banking is gaining more than 2 percent, while National Australia bank and Westpac are adding almost 1 percent each.

Among gold miners, Evolution Mining is losing almost 1 percent, Resolute Mining is down more than 1 percent and Northern Star Resources is declining almost 3 percent, while Gold Road Resources and Newmont are edging down 0.2 to 0.3 percent each.

In other news, shares in DroneShield are skyrocketing more than 21 percent after it revealed that it has secured the largest order in its history. It has received a package of three standalone follow-on contracts worth $61.6 million from its privately owned in-country European reseller.

In the currency market, the Aussie dollar is trading at $0.650 on Wednesday.

The Japanese stock market is slightly lower in choppy trading on Wednesday after opening in the green, reversing some of the gains in the previous session, despite the broadly positive cues from Wall Street overnight. The Nikkei 225 is staying well below the 38,800 level, with weakness in index heavyweights, automakers and financial stocks partially offset by gains in technology stocks.

The benchmark Nikkei 225 Index closed the morning session at 38,750.47, down 40.09 points or 0.10 percent, after touching a high of 38,925.91 earlier. Japanese stocks ended significantly higher on Tuesday.

Market heavyweight SoftBank Group is losing more than 3 percent and Uniqlo operator Fast Retailing is down almost 1 percent. Among automakers, Honda and Toyota are losing almost 1 percent each.

In the tech space, Advantest is gaining 2.5 percent, Tokyo Electron is adding almost 4 percent and Screen Holdings is advancing more than 2 percent.

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

Among the major exporters, Canon and Panasonic are edging down 0.1 percent each, while Sony is losing almost 1 percent. Mitsubishi Electric is gaining more than 2 percent.

Among other major losers, Olympus is plunging almost 10 percent and Sapporo Holdings is losing almost 3 percent.

Conversely, Ebara is surging almost 5 percent, Mitsui Chemicals is gaining more than 4 percent and Taiyo Yuden is advancing more than 3 percent, while Yokohama Rubber, Nikon, Alps Alpine and Sumco are adding almost 3 percent each.

In economic news, producer prices in Japan were up 3.3 percent on year in May, the Bank of Japan said on Tuesday. That beat forecasts for an increase of 3.1 percent and was down from 3.4 percent in April. On a monthly basis, producer prices dipped 0.1 percent after rising 0.7 percent in the previous month. Excluding international transportation, producer prices were flat on month and up 3.5 percent on year.

In the currency market, the U.S. dollar is trading in the higher 144 yen-range on Wednesday.

Elsewhere in Asia, Hong Kong, Singapore, South Korea, Malaysia and Taiwan are higher by between 0.3 and 0.7 percent each. New Zealand, China and Indonesia are relatively flat.

On the Wall Street, stocks moved sharply higher during trading on Tuesday, extending the strong upward move seen over the course of the previous session. With the continued advanced, the major averages reached their best closing levels in four months.

The major averages pulled back off their best levels going into the close but remained firmly positive. The Nasdaq surged 281.56 points or 1.4 percent to 19,912.53, the Dow jumped 507.24 points or 1.2 percent to 43,089.02 and the S&P 500 shot up 67.01 points or 1.1 percent to 6,092.18.

The major European markets all also moved to the upside on the day. Germany's DAX Index jumped by 1.6 percent and France's CAC 40 Index advanced by 1.0 percent, although the U.K.'s FTSE 100 Index closed only slightly above the unchanged line.

Crude oil prices tumbled on Tuesday as the Israel-Iran conflict cooled down after an announcement by the US President of a ceasefire between the warring nations. West Texas Intermediate crude oil closed down by $4.14 to settle at $64.37 per barrel.