Asian Markets Track Wall Street Lower

(RTTNews) - Asian stock markets are trading mostly lower on Wednesday, following the broadly negative cues from Wall Street overnight, as some traders booked some profits following recent strength in the markets. The lack of data amid the ongoing U.S. government shutdown has led to some uncertainty about the outlook for interest rates, although the US Fed is still widely expected to cut rates by another quarter point later this month. Asian markets closed mixed on Tuesday.

Remarks by several Fed officials, including Fed Chair Jerome Powell, this week along with the release of the minutes of the central bank's latest meeting may shed additional light on the outlook for rates. Powell's speech on Thursday is anticipated by markets to gain insights on the Fed's understanding of the economy.

Australian shares are trading slightly lower on Wednesday, adding to the losses in the previous two sessions, with the benchmark S&P/ASX 200 falling below the 8,950 level, following the broadly negative cues from Wall Street overnight, with weakness in gold miners, energy and financial stocks.

The benchmark S&P/ASX 200 Index is losing 12.20 points or 0.13 percent to 8,941.40, after hitting a low of 8,916.20 earlier. The broader All Ordinaries Index is down 7.90 points or 0.09 percent to 8,948.90. Australian stocks ended modestly lower on Tuesday.

Among major miners, Rio Tinto is gaining more than 1 percent and Mineral Resources is advancing more than 2 percent, while BHP Group and Fortescue are edging down 0.2 percent each.

Oil stocks are mostly lower. Woodside Energy and Origin Energy are losing almost 1 percent each, while Beach energy is down more than 1 percent. Santos is edging up 0.4 percent.

In the tech space, Afterpay owner Block and Zip are gaining more than 2 percent each, while Appen is edging up 0.2 percent. Xero is losing almost 2 percent and WiseTech Global is down almost 1 percent.

Among the big four banks, Commonwealth Bank, ANZ Banking, Westpac and National Australia bank are edging down 0.1 to 0.5 percent each. Among gold miners, Evolution Mining, Newmont and Northern Star Resources are losing almost 1 percent each, while Resolute Mining is tumbling almost 4 percent.

In other news, shares in James Hardie are surging more than 9 percent after the building-materials company reported preliminary net sales for the second quarter that beat the average analyst estimate.

Shars in Apiam Animal Health are jumping almost 9 percent on news that private equity firm Adamantem has completed its due diligence on the ASX-listed rural veterinary service provider after it lobbed a non-binding indicative offer in August.

Shares in Catalyst Metals are tumbling almost 4 percent after the gold miner reported a quarterly production update revealing a shortfall of 2,000 ounces in gold production.

In the currency market, the Aussie dollar is trading at $0.656 on Wednesday.

The Japanese stock market is trading slightly higher on Wednesday after opening in the red, reversing the slight losses in the previous session, despite the broadly negative cues from Wall Street overnight. The Nikkei 225 is moving above the 47,950 level, with gains automakers and financial stocks.

The benchmark Nikkei 225 Index closed the morning session at 47,965.29, up 14.41 points or 0.03 percent, after hitting a low of 47,845.63 and a high of 48,181.12 earlier. Japanese stocks ended slightly lower on Tuesday.

Market heavyweight SoftBank Group is losing almost 1 percent and Uniqlo operator Fast Retailing is edging down 0.2 percent. Among automakers, Honda is gaining more than 1 percent and Toyota is also adding more than 1 percent.

In the tech space, Advantest is gaining almost 1 percent and Screen Holdings is edging up 0.5 percent, while Tokyo Electron is losing more than 1 percent.

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

Among the major exporters, Mitsubishi Electric is adding more than 1 percent and Sony is gaining more than 2 percent, while Canon and Panasonic are edging down 0.3 percent each.

Among other major gainers, IHI is jumping almost 7 percent and Fujikura is surging almost 5 percent, while Daiichi Sankyo, Credit Saison, Japan Exchange Group and Japan Steel Works are gaining almost 4 percent each. Tokio Marine, Sompo Holdings, T&D Holdings, Mitsui Kinzoku and Mitsubishi Heavy Industries are advancing more than 3 percent each, while Resona Holdings, Taiyo Yuden and Furukawa Electric are adding almost 3 percent each.

Conversely, there are no other major losers.

In economic news, Japan posted a current account surplus of 3.776 trillion yen in August, the Ministry of Finance said on Wednesday - down 4.8 percent on year. That beat forecasts for a surplus of 3.540 trillion yen and was up from 2.684 trillion yen in July.

Imports were down 6.0 percent on year to 8.253 trillion yen and exports were up an annual 0.4 percent at 8.359 trillion yen for a trade surplus of 105.9 billion yen. The capital account showed a deficit of 16.3 billion yen, while the financial account had a surplus of 1.838 trillion yen.

In the currency market, the U.S. dollar is trading in the lower 152 yen-range on Wednesday.

Elsewhere in Asia, Singapore, Hong Kong, Malaysia, Taiwan and Indonesia are lower by between 0.3 and 0.9 percent each. New Zealand is bucking the trend and is up 0.6 percent. South Korea remains closed for Chuseok and China remains closed for Mid-Autumn Festival.

On the Wall Street, stocks gave back some ground during trading on Tuesday following the upward move seen over the course of the previous session. The major averages all moved to the downside, with the Nasdaq and the S&P 500 pulling back off Monday's record closing highs.

The major averages finished the day off their worst levels but still in negative territory. The Nasdaq slid 153.30 points or 0.7 percent to 22,788.36, the S&P 500 fell 25.69 points or 0.4 percent to 6,714.59 and the Dow dipped 91.99 points or 0.2 percent to 46,602.98.

Meanwhile, the major European markets ended the day roughly flat. While the U.K.'s FTSE 100 Index crept up by 0.1 percent, the German DAX Index and the French CAC 40 Index closed just above the unchanged line.

Crude oil prices crept slightly higher on Tuesday, despite forecasts of weakening oil demand. West Texas Intermediate crude for November delivery was up $0.02 or 0.03 percent at $61.71 per barrel.