Asian Markets Trade Mostly Higher

(RTTNews) - Asian stock markets are trading mostly higher on Monday, despite the broadly negative cues from Wall Street on Friday, as weaker-than-expected US jobs data reinforced expectations of a quarter point interest rate cut by the US Fed in September. Most currencies in the region also gained strength against a weak U.S. dollar. Asian markets closed mostly higher on Friday.

CME Group's FedWatch Tool is currently indicating a 90.0 percent chance of 25 basis point rate cut at the September 16-17 meeting and a slim 10.0 percent chance of a 50 basis point rate cut.

Traders also look ahead to reports later in the week on consumer and producer price inflation, which could further impact the outlook for interest rates.

The Australian stock market is modestly lower on Monday, recouping some of the gains in the previous two sessions, following the broadly negative cues from Wall Street on Friday. The benchmark S&P/ASX 200 index is falling below the 8,850.00 level, with weakness in energy and financial stocks partially offset by gains in mining stocks.

The benchmark S&P/ASX 200 Index is losing 34.00 points or 0.38 percent to 8,837.20, after hitting a low of 8,826.90 earlier. The broader All Ordinaries Index is down 26.40 points or 0.29 percent to 9,114.10. Australian stocks closed notably higher on Friday.

Among the major miners, Rio Tinto is gaining almost 2 percent, BHP Group is edging up 0.1 percent and Mineral Resources is advancing 2.5 percent. Fortescue is flat.

Oil stocks are mostly lower. Woodside Energy is declining more than 3 percent and Origin Energy is down almost 1 percent, while Beach energy and Santos are losing more than1 percent each.

Among tech stocks, Afterpay owner Block is declining more than 1 percent and Zip is losing almost 1 percent, while WiseTech Global is gaining more than 1 percent, Xero is up almost 1 percent and Appen is edging up 0.3 percent.

Gold miners are mixed. Northern Star Resources is gaining almost 1 percent and Resolute Mining is adding more than 1 percent, while Evolution Mining is losing more than 1 percent and Newmont is edging down 0.5 percent. Gold Road Resources is flat.

Among the big four banks, National Australia Bank and Westpac are declining almost 1 percent each, while Commonwealth Bank is edging down 0.4 percent and ANZ Banking is losing more than 1 percent.

In other news, shares in Mayne Pharma are tumbling almost 13 percent after reports that the state government of Australia had asked the FIRB to block Cosette's $672 million takeover over fears that Salisbury, a major Adelaide manufacturing plant, would be closed.

Shares in 4DMedical are jumping more than 28 percent after the company reported inking agreements with a leading global pharmaceutical company, Royal Melbourne Hospital, and Spectrum Medical Imaging to deploy its lung health analysis software.

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

The Japanese stock market is trading sharply higher on Monday, extending the gains in the previous two sessions, despite the broadly negative cues from Wall Street on Friday, with the Nikkei 225 surging more than 600 points to well above the 43,600 level, with gains across most sectors amid upbeat domestic GDP figures, led by index heavyweights and technology stocks. Financial stocks were the only weak spot.

Japanese Prime Minister Shigeru Ishiba announced over the weekend that he will step down amid intensifying rifts within the ruling party.

The benchmark Nikkei 225 Index closed the morning session at 43,630.54, up 611.79 points or 1.42 percent after touching a high of 43,838.60 earlier. Japanese shares ended significantly higher on Friday.

Market heavyweight SoftBank Group is gaining almost 3 percent and Uniqlo operator Fast Retailing is adding almost 3 percent. Among automakers, Honda and Toyota are flat.

In the tech space, Advantest is advancing almost 4 percent, Tokyo Electron is gaining more than 2 percent and Screen Holdings is adding more than 3 percent.

In the banking sector, Sumitomo Mitsui Financial is losing almost 1 percent, while Mizuho Financial and Mitsubishi UFJ Financial are edging down 0.3 percent each.

The major exporters are mostly higher. Panasonic and Mitsubishi Electric are edging up 0.3 to 0.4 percent each, while Sony is gaining more than 3 percent and Canon is adding almost 1 percent. Among the other major gainers, Socionext is jumping almost 7 percent and Mazda Motor is surging more than 6 percent, while Recruit Holdings, Mitsubishi Heavy Industries, Sumitomo Realty & Development and IHI are gaining almost 4 percent each. Renesas Electronics, Daiwa Securities, J. Front Retailing, Mitsubishi Estate, Lasertec, Fanuc and Mitsui Fudosan are all adding more than 3 percent each.

Conversely, there are no other major losers.

In economic news, Japan's gross domestic product climbed a seasonally adjusted 0.5 percent on quarter in the second quarter of 2025, the Cabinet Office said on Monday. That beat expectations for an increase of 0.3 percent, which would have been unchanged from the previous reading. On an annualized basis, GDP rallied 2.2 percent - handily beating forecasts for an increase of 1.0 percent, which again would have been unchanged.

GDP capital expenditure was up 0.6 percent on quarter, missing expectations for an increase of 1.3 percent. External demand was up 0.3 percent on quarter and private consumption rose 0.4 percent on quarter.

Meanwhile, Japan posted a current account surplus of 2.684 trillion yen in July, the Ministry of Finance said on Monday. That was well shy of expectations for a surplus of 2.266 trillion yen following the 1.348 trillion yen surplus in June. Exports were down 4.9 percent on year at 9.006 trillion yen and imports sank an annual 7.4 percent to 9.195 trillion yen for a trade deficit of 189 billion yen. The capital account saw a deficit of 16.3 billion yen, while the financial account posted a surplus of 2.028 trillion yen.

Overall bank lending in Japan was up 3.6 percent on year in August, the Bank of Japan said on Monday - coming in at 646.058 trillion yen. That topped forecasts for an increase of 3.2 percent, which would have been unchanged from the July reading. Excluding trusts, lending jumped an annual 3.9 percent to 567.570 trillion yen, while lending from trusts rose 1.3 percent on year for the third straight month, this time at 78.488 trillion yen.

In the currency market, the U.S. dollar is trading in the lower 148 yen-range on Monday.

Elsewhere in Asia, New Zealand, Hong Kong, South Korea, Malaysia, Indonesia and Taiwan are higher by between 0.1 and 0.7 percent each. China and Singapore are down 0.1 percent each.

On Wall Street, stocks came under pressure in early trading on Friday after failing to sustain an initial move to the upside. The major averages pulled back into negative after reaching new record intraday highs.

The major averages climbed well off their worst levels as the day progressed but still closed in negative territory. The Dow slid 220.43 points or 0.5 percent to 45,400.86, the S&P 500 fell 20.58 points or 0.3 percent to 6,481.50 and the Nasdaq edged down 7.31 points or less than a tenth of a percent to 21,700.39.

The major European markets also all moved to the downside on the day. While the German DAX Index slid by 0.7 percent, the French CAC 40 Index fell by 0.3 percent and the U.K.'s FTSE 100 Index edged down by 0.1 percent.

Crude oil prices moved sharply lower on Friday as oversupply concerns grew stronger ahead of OPEC's Sunday meeting, where the group did as expected and boosted output. West Texas Intermediate crude for October delivery dropped $1.64 or 2.58 percent to $61.84 per barrel.