Asian Markets Track Global Markets Higher

(RTTNews) - Asian stock markets are mostly higher on Friday, following the broadly positive cues from global markets overnight, as risk sentiment improved after the bill to raise US debt limit and cap government spending in the U.S. was passed by a wide margin late Wednesday to remove a source of uncertainty in the markets. The U.S. Senate will vote on the bill as early as later in the day before President Joe Biden can sign it into law. Asian markets ended mostly higher on Thursday.

Majority Leader Chuck Schumer, D-N.Y., said the Senate would remain in session until the bill is passed and warned lawmakers would be risking a default by trying to amend the legislation and send it back to the House.

"The deal is now in the Senate's hands and the question is not if they will pass the bill but on when they will get it done," said Edward Moya, senior market analyst at OANDA.

Trading are also likely to be driven by reaction to the monthly jobs report later in the day, which could impact the outlook for interest rates.

The Australian stock market is notably higher on Friday, extending the gains in the previous session, with the benchmark S&P/ASX 200 staying above the 7,100 level, following the broadly positive cues from global markets overnight, with gains across most sectors, led by miners and technology stocks. Traders also cautiously looked ahead to the RBA's interest rate decision scheduled for next week.

The benchmark S&P/ASX 200 Index is gaining 19.40 points or 0.27 percent to 7,130.20, after touching a high of 7,165.80 earlier. The broader All Ordinaries Index is up 24.00 points or 0.33 percent to 7,314.70. Australian markets ended modestly higher on Thursday.

Among major miners, Rio Tinto, Mineral Resources and BHP Group are adding almost 2 percent each, while Fortescue Metals is gaining almost 1 percent.

Oil stocks are higher. Santos and Woodside Energy are gaining almost 1 percent each, while Beach energy is adding more than 1 percent. Origin Energy is flat.

Among tech stocks, Afterpay owner Block is gaining almost 1 percent, WiseTech Global is advancing almost 2 percent and Appen is soaring almost 12 percent, while Zip and Xero are adding more than 1 percent each.

Among the big four banks, Westpac and ANZ Banking are edging down 0.3 to 0.4 percent each, while National Australia Bank is losing almost 1 percent. Commonwealth Bank is edging up 0.1 percent.

Gold miners are strong. Gold Road Resources is adding more than 3 percent, Northern Star Resources is gaining almost 2 percent, Evolution Mining is advancing more than 2 percent, Newcrest Mining is rising almost 4 percent and Resolute Mining is up 2.5 percent.

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

The Japanese stock market is significantly higher on Friday, extending the gains in the previous session, with the benchmark Nikkei 225 moving to a tad below the 31,400 level to climb back toward fresh 33-year highs, following the broadly positive cues from global markets overnight, boosted by gains across most sectors, led by index heavyweights and exporters. Technology stocks were weak.

The benchmark Nikkei 225 Index closed the morning session at 31,384.93, up 236.92 points or 0.76 percent, after touching a high of 31,424.15 earlier. Japanese stocks closed significantly higher on Thursday.

Market heavyweight SoftBank Group is gaining almost 5 percent, while Uniqlo operator Fast Retailing is edging down 0.3 percent. Among automakers, Honda is gaining almost 1 percent and Toyota is adding almost 2 percent.

In the tech space, Advantest is losing more than 2 percent, Screen Holdings is down almost 1 percent and Tokyo Electron is declining almost 3 percent.

In the banking sector, Mitsubishi UFJ Financial is edging up 0.1 percent and Mizuho Financial is gaining almost 1 percent, while Sumitomo Mitsui Financial is losing more than 1 percent.

Among major exporters, Panasonic is gaining 2.5 percent and Mitsubishi Electric is adding more than 2 percent, while Canon and Sony are edging up 0.2 to 0.3 percent each.

Among the other major gainers, Eisai and Nippon Paper Industries are gaining almost 4 percent each, while Sumitomo Realty & Development, Nidec, M3 and T&D Holdings are adding more than 3 percent each. Dai-ichi Life, CyberAgent, Recruit Holdings, Omron, Mitsui Chemicals and Taiheiyo Cement are all up almost 3 percent each.

Conversely, Sharp is losing almost 3 percent.

In economic news, the monetary base in Japan was down 1.1 percent on year in May, the Bank of Japan said on Friday - coming in at 672.732 trillion yen. That beat expectations for a decline of 1.4 percent following the upwardly revised 1.7 percent contraction in April (originally -1.9 percent). The adjusted monetary base was down 0.7 percent.

In the currency market, the U.S. dollar is trading in the higher 138 yen-range on Friday.

Elsewhere in Asia, Hong Kong is surging 3.2 percent, while China, South Korea and Taiwan are higher by between 0.5 and 1.0 percent each. New Zealand and Malaysia are down 0.5 and 0.3 percent, respectively. Indonesia and Singapore are closed for Vesak Day holiday.

On Wall Street, stocks showed a lack of direction in early trading on Thursday but moved notably higher over the course of the session. With the upward move on the day, the Nasdaq and the S&P 500 reached their best closing levels in over nine months.

The major averages pulled back off their highs of the session going into the close but remained firmly positive. The Nasdaq surged 165.70 points or 1.3 percent to 13,100.98, the S&P 500 jumped 41.10 points or 1.0 percent to 4,221.02 and the Dow climbed 153.30 points or 0.5 percent to 33,061.57.

The major European markets also moved to the upside on the day. While the German DAX Index jumped by 1.2 percent, the U.K.'s FTSE 100 Index and the French CAC 40 Index both climbed by 0.6 percent.

Crude oil prices rose sharply Thursday on hopes OPEC will announce a cut in production. Oil prices were also supported by a weak U.S. dollar and the passage of the debt ceiling bill. West Texas Intermediate crude futures for July ended higher by $2.01 or 3 percent at $70.10 per barrel.