Asian Markets Trade Mixed

(RTTNews) - Asian stock markets are trading mixed on Friday, following the broadly positive cues from Wall Street overnight, with mainland China and South Korean markets closed for holidays. Optimism about the outlook for interest rates and weakening US dollar against major currencies in the region are aiding market sentiment. Asian markets ended mostly higher on Thursday.

Concerns remain about the economic impact of the ongoing U.S. government shutdown, which entered its second day with no signs of an imminent resolution. Key economic reports that the data-driven U.S. Federal Reserve assesses for its monetary policy decisions are have been indefinitely postponed.

However, investors are expecting two rate cuts this year and another next year due to prevailing unemployment and the recent weak ADP private payrolls data. According to CME Group's FedWatch Tool, investors are betting on a 98.9% chance of a 25-basis-point interest rate cut at the Fed's October 28-29 meeting.

The Australian stock market is trading modestly higher on Friday, extending the gains in the previous session, following the broadly positive cues from Wall Street overnight. The benchmark S&P/ASX 200 is moving above the 8,950 level, with gains in financial and technology stocks partially offset by weakness in mining stocks.

The benchmark S&P/ASX 200 Index is gaining 35.60 points or 0.40 percent to 8,981.50, after hitting a low of 8,927.90 and a high of 8,990.00 earlier. The broader All Ordinaries Index is up 38.10 points or 0.41 percent to 9,278.40. Australian stocks closed significantly higher on Thursday.

Among major miners, BHP Group and Mineral Resources are edging down 0.1 to 0.2 percent each, while Fortescue and Rio Tinto are adding almost 1 percent each.

Oil stocks are mixed. Origin Energy is edging down 0.1 percent andSantos is losing almost 1 percent, while Woodside Energy is edging up 0.1 percent. Beach energy is flat. Among tech stocks, Afterpay-owner Block is surging almost 5 percent, Xero is gaining almost 1 percent, Zip is advancing almost 2 percent and Appen is adding more than 2 percent, while WiseTech Global is edging down 0.1 percent.

Among the big four banks, Commonwealth Bank, National Australia Bank and Westpac are edging up 0.2 to 0.5 percent each, while ANZ Banking is gaining almost 1 percent.

Gold miners are mostly lower. Resolute Mining and Northern Star Resources are losing almost 2 percent each, while Evolution Mining is edging down 0.4 percent. Newmont is edging up 0.2 percent.

In other news, shares in DigiCo are sky rocketing almost 18 percent after it lifted its earnings guidance amid growing demand for its AI infrastructure.

Shares in Mesoblast are surging more than 13 percent after it reported that Ryoncil, its therapy to treat children for complications that could occur during bone marrow transplants, got formal recognition from the U.S. Medicare & Medicaid Services that allows for broader patient access.

Shares in 4DMedical are soaring almost 13 percent after the company closed the 4DXOA option exercise period after 99.73% of these options were exercised that significantly boosted its balance sheet strength.

In economic news, the services sector in Australia continued to expand in September, albeit at a slower pace, the latest survey from S&P Global revealed on Friday with a services PMI score of 53.4. That's down from 55.8 in August, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.

In the currency market, the Aussie dollar is trading at $0.660 on Friday.

Extending the gains in the previous session, the Japanese market is sharply higher on Friday, following the broadly positive cues from Wall Street overnight. The Nikkei 225 is surging over 600 points to near the 45,600 level, with gains across most sectors led by exporters and technology stocks.

The benchmark Nikkei 225 Index closed the morning session at 45,584.54, up 647.81 points or 1.44 percent, after touching a high of 45,742.63 earlier. Japanese shares ended significantly higher on Thursday.

Market heavyweight SoftBank Group is gaining almost 4 percent and Uniqlo operator Fast Retailing is edging up 0.2 percent. Among automakers, Toyota is gaining almost 1 percent and Honda is also adding almost 1 percent.

In the tech space, Advantest is gaining almost 4 percent, Tokyo Electron is adding more than 2 percent and Screen Holdings is up more than 1 percent.

In the banking sector, Sumitomo Mitsui Financial, Mizuho Financial and Mitsubishi UFJ Financial are gaining more than 1 percent each.

Among the major exporters, Sony is advancing almost 3 percent, Canon is gaining almost 1 percent, Panasonic is surging almost 5 percent and Mitsubishi Electric is adding more than 1 percent.

Among other major gainers, Renesas Electronics and Hitachi are jumping almost 9 percent, while Sumco is soaring more than 7 percent and Tokyo Electric Power is surging almost 6 percent. Mitsui Kinzoku, Fujitsu, Recruit Holdings is gaining more than 4 percent each, while Nitto Denko, M3, Japan Exchange Group and Socionext are adding almost 4 percent each. Sharp is advancing almost 3 percent.

Conversely, Ryohin Keikaku is tumbling almost 8 percent and Nitori Holdings is losing more than 4 percent.

In economic news, the jobless rate in Japan came in at a seasonally adjusted 2.6 percent in August, the Ministry of Internal Affairs and Communications said on Friday. That missed forecasts for 2.4 percent and was up from 2.3 percent in July.

The jobs-to-applicant ratio was 1.20, again missing forecasts for 1.22 - which would have been unchanged from the previous month. The participation rate ticked up to 64.0 from 63.9 a month earlier.

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

Elsewhere in Asia, New Zealand, Singapore, Taiwan and Indonesia are lower by between 0.3 and 0.7 percent each, while Hong Kong and Malaysia are down 0.6 and 0.3 percent, respectively. South Korea is closed for National Foundation Day and China remains closed for National Day.

On Wall Street, stocks fluctuated over the course of the trading session on Thursday before once again ending the day mostly higher. With the upward move, the major averages closed higher for the fifth straight session, reaching new record closing highs.

The major averages all finished the day in positive territory. The Nasdaq climbed 88.89 points or 0.4 percent to 22,844.05, the Dow rose 78.62 points or 0.2 percent to 46,519.72 and the S&P 500 inched up 4.15 points or 0.1 percent to 6,715.35.

The major European markets also moved to the upside on the day. The German DAX Index and the French CAC 40 Index jumped by 1.3 percent and 1.1 percent, respectively, although the U.K.'s FTSE 100 Index bucked the uptrend and dipped by 0.2 percent.

Crude oil prices tumbled on Thursday on anxiety about the long-term impact of the ongoing U.S. government shutdown, which enters the second day today. West Texas Intermediate crude for November delivery was down $1.23 or 1.99 percent at $60.55 per barrel.