Asian Markets Trade Mixed

(RTTNews) - Asian stock markets are trading mixed on Monday, following the mixed cues from Wall Street on Friday, amid renewed uncertainty about the outlook for interest rates, the lofty valuation in the tech sector and the U.S. economic outlook. Asian markets closed mostly lower on Friday.

Recent comments from US Fed officials and indications that key U.S. economic data may never be released due to the government shutdown, have reduced confidence that the central bank will lower interest rates next month.

CME Group's FedWatch Tool currently indicates the chances of another quarter point rate cut at the next Fed meeting have slumped to 45.8 percent from 66.9 percent a week ago.

The Australian stock market is modestly lower on Monday, adding to the losses in the previous four sessions, following the mixed cues from Wall Street on Friday. The benchmark S&P/ASX 200 index is falling to near the 8,600.00 level, with weakness in financial stocks and mixed performance across most other sectors.

The benchmark S&P/ASX 200 Index is losing 24.7 points or 0.25 percent to 8,609.80, after hitting a low of 8,588.90 earlier. The broader All Ordinaries Index is down 19.20 points or 0.19 percent to 8,887.80. Australian stocks closed sharply lower on Friday.

Among the major miners, BHP Group is losing almost 1 percent and Mineral Resources is declining more than 1 percent, while Rio Tinto and Fortescue are gaining almost 1 percent each.

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

Among tech stocks, Afterpay owner Block is losing almost 1 percent and Xero is declining more than 1 percent, while WiseTech Global is edging up 0.2 percent and Appen is surging almost 5 percent. Zip is flat.

Gold miners are mostly higher. Northern Star Resources is gaining almost 1 percent, Resolute Mining is gaining 2.5 percent and Genesis Minerals is advancing more than 2 percent and Evolution Mining is edging up 0.2 percent, while Newmont is losing almost 2 percent.

Among the big four banks, ANZ Banking, Westpac and National Australia Bank are edging down 0.1 to 0.5 percent each, while Commonwealth Bank is losing more than 1 percent.

In other news, shares in Iperionx are tumbling almost 12 percent amid short selling after a damning report by Spruce Point Management, which challenges the company's valuation and commercial prospects. IperionX hit back highlighting fresh U.S. defence contracts and its growth outlook.

Shares in TPG Telecom are in a trading halt as it is in the middle of a major capital management and liquidity reset after tumbling 30 percent last week on going ex-distribution for a massive $1.61 per share capital return.

In the currency market, the Aussie dollar is trading at $0.653 on Monday.

The Japanese stock market is trading notably lower on Monday, extending the sharp losses in the previous session, following the mixed cues from Wall Street on Friday, with the Nikkei 225 falling to near the 50,000 mark, with weakness exporter and automaker stocks as well as a mixed performance across most other sectors.

The benchmark Nikkei 225 Index closed the morning session at 50,011.53, down 365.00 points or 0.72 percent, after hitting a low of 49,845.66 earlier. Japanese shares ended sharply lower on Friday.

Market heavyweight SoftBank Group is gaining almost 4 percent, while Uniqlo operator Fast Retailing is surging almost 5 percent. Among automakers, Honda is losing more than 3 percent and Toyota is down almost 2 percent.

In the tech space, Advantest is edging up 0.4 percent and Tokyo Electron is gaining almost 4 percent, while Screen Holdings is losing almost 1 percent.

In the banking sector, Sumitomo Mitsui Financial is advancing more than 4 percent and Mizuho Financial is gaining almost 1 percent, while Mitsubishi UFJ Financial is losing 1.5 percent.

The major exporters are mostly lower. Mitsubishi Electric is edging down 0.3 percent, Canon is losing almost 1 percent, Panasonic is declining almost 3 percent and Sony is slipping almost 4 percent.

Among the other major losers, CyberAgent and Shiseido are tumbling more than 9 percent each, while Isetan Mitsukoshi is sliding almost 9 percent and Credit Saison is slipping almost 8 percent. Ryohin Keikaku and Dai Nippon Printing are declining more than 7 percent each. Takashimaya, Sharp, Nissan Motor and Japan Airlines are down almost 5 percent each. Oriental Land is losing more than 5 percent, while Yokohama Rubber and J. Front Retailing are slipping more than 3 percent each.

Conversely, Mitsui Kinzoku is surging more than 7 percent and Chugai Pharmaceutical is gaining more than 5 percent, while Furukawa Electric and Ibiden are adding almost 4 percent each. Fujikura and Nichirei are advancing almost 3 percent each.

In economic news, Japan's gross domestic product contracted a seasonally adjusted 0.4 percent on quarter in the third quarter of 2025, the Cabinet Office said on Monday - following the upwardly revised 0.6 percent expansion in the previous three months (originally 0.5 percent). On an annualized basis, GDP was down 1.8 percent following the upwardly revised 2.3 percent gain in the three months prior (originally 2.2 percent).

Capital expenditure was up 1.0 percent on quarter, up from 0.8 percent in Q2, while external demand slipped 0.2 percent on quarter after rising 0.2 percent in the previous quarter. The GDP price Index was up 2.8 percent on year, easing from 3.0 percent in the second quarter. GDP private consumption perked 0.1 percent on quarter, easing from 0.4 percent in Q2.

In the currency market, the U.S. dollar is trading in the higher 154 yen-range on Monday.

Elsewhere in Asia, South Korea is up 1.7 percent, while New Zealand, Malaysia, Indonesia and Taiwan are higher by between 0.1 and 0.7 percent each. China, Hong Kong and Singapore are lower by between 0.1 and 0.5 percent each.

On Wall Street, stocks saw further downside in early trading on Friday following the sell-off seen during Thursday's session, but showed a significant recovery attempt as the day progressed.

The Nasdaq and the S&P 500 climbed well off their lows and into positive territory before eventually ending the day roughly flat. The tech-heavy Nasdaq inched up 30.23 points or 0.1 percent 22,900.59, while the S&P 500 edged down 3.38 points or 0.1 percent to 6,734.11 and the narrower Dow sliding 309.74 points or 0.7 percent to 47,147.48.

Meanwhile, the major European markets also moved to the downside on the day. While the U.K.'s FTSE 100 Index slumped by 1.1 percent, the French CAC 40 Index and the German DAX Index fell by 0.8 percent and 0.7 percent, respectively.

Crude oil prices rallied on Friday after a Ukrainian drone attack damaged an oil depot in the Russian Black Sea port of Novorossiysk. West Texas Intermediate crude for December delivery was up $1.28 or 2.2 percent at $59.97 a barrel.