Asian Markets Trade Mixed

(RTTNews) - Asian stock markets are trading mixed on Wednesday, following the broadly negative cues from Wall Street overnight, amid concerns about the escalating tensions in the Middle East that fueled fresh speculation that the U.S. is on the verge of joining Israel's attack on Iran. Traders are also cautious ahead of the U.S. Fed's interest-rate decision. Asian markets closed mostly lower on Tuesday.

While reports hinting at an end to hostilities contributed to a rally on Monday, news that US President Donald Trump left a G7 summit early to focus on the conflict has led to worries about further escalation after Trump demanded an "unconditional surrender" from Iran.

Australian shares are trading slightly lower on Wednesday, extending the slight losses in the previous session, with the benchmark S&P/ASX 200 staying above the 8,500 level, following the broadly negative cues from Wall Street overnight, with weakness in iron ore miners and a mixed performance in all other sectors. The benchmark S&P/ASX 200 Index is losing 0.90 points or 0.01 percent to 8,540.40, after hitting a low of 8,520.00 and a high of 8,553.00 earlier. The broader All Ordinaries Index is down 3.60 points or 0.04 percent to 8,767.50. Australian stocks ended slightly lower on Tuesday.

Among major miners, BHP Group is losing more than 1 percent, Fortescue metals is declining more than 4 percent, Rio Tinto is edging down almost 0.4 percent and Mineral Resources is tumbling 5.5 percent.

Oil stocks are mixed. Santos is edging up 0.5 percent and Beach energy is adding almost 4 percent, while Woodside Energy is edging down 0.2 percent and Origin Energy is losing more than 2 percent.

In the tech space, Afterpay owner Block is losing more than 2 percent, Zip is down more than 1 percent and Appen is declining more than 5 percent, while Xero is up almost 1 percent and WiseTech Global is gaining more than 2 percent.

Among the big four banks, Commonwealth Bank is edging up 0.5 percent, while Westpac is edging down 0.2 percent and ANZ Banking is losing more than 1 percent. National Australia bank is flat.

Among gold miners, Evolution Mining is losing more than 2 percent, Northern Star Resources is down almost 3 percent and Gold Road Resources is down almost 1 percent, while Resolute Mining is advancing more than 2 percent and Newmont is gaining almost 1 percent.

In the currency market, the Aussie dollar is trading at $0.649 on Wednesday.

The Japanese stock market is trading notably higher on Wednesday after opening in the red, extending the gains in the previous two sessions, despite the broadly negative cues from Wall Street overnight. The Nikkei 225 is moving up to near the 38,800 level, with gains in some index heavyweights and exporters partially offset by weakness in financial and technology stocks.

The benchmark Nikkei 225 Index closed the morning session at 38,791.80, up 255.06 points or 0.66 percent, after hitting a low of 38,364.16 and a high of 38,791.80 earlier. Japanese stocks ended notably higher on Tuesday.

Market heavyweight SoftBank Group is edging down 0.5 percent, while Uniqlo operator Fast Retailing is gaining almost 1 percent. Among automakers, Honda is flat and Toyota is edging up 0.2 percent.

In the tech space, Advantest is edging down 0.2 percent, while Tokyo Electron and Screen Holdings are losing almost 1 percent each.

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

Among the major exporters, Canon, Panasonic and Mitsubishi Electric are edging up 0.1 to 0.4 percent each, while Sony is edging down 0.1 percent.

Among other major gainers, Lasertec is surging almost 5 percent, while Oji Holdings and Nintendo are gaining more than 4 percent each. LY is advancing almost 4 percent, CyberAgent is adding more than 3 percent and Taisei is up almost 3 percent each.

Conversely, Taiyo Yuden and Renesas Electronics are losing more than 3 percent each, while Nippon Steel and Nidec are down almost 3 percent each.

In economic news, Japan posted a merchandise trade deficit of 637.6 billion yen in May, the Ministry of Economy, Trade and Industry said on Wednesday. That exceeded expectations for a shortfall of 893.0 billion yen following the upwardly revised 115.6 billion yen deficit in April (originally 115.8 billion yen).

Exports were down 1.7 percent on year, topping forecasts for a decline of 3.8 percent following the 2.0 percent increase in the previous month. Imports were down an annual 7.7 percent versus expectations for a decline of 6.7 percent after shrinking 2.2 percent a month earlier.

Meanwhile, the value of core machinery orders in Japan was down a seasonally adjusted 9.1 percent on month in April, the Cabinet Office said on Wednesday - coming in at 919-0 billion yen. That beat forecasts for a decline of 9.3 percent following the 13.0 percent jump in March. On a yearly basis, core machinery orders rallied 6.6 percent - again topping forecasts for a gain of 4.0 percent after gaining 8.4 percent in the previous month. The total value of machinery orders received by 280 manufacturers operating in Japan fell 2.3 percent on month and added 0.6 percent on year in April.

In the currency market, the U.S. dollar is trading in the lower 145 yen-range on Wednesday.

Elsewhere in Asia, China, Hong Kong, Singapore and Indonesia are lower by between 0.3 and 1.2 percent each, while New Zealand South Korea and Taiwan are higher by between 0.1 and 0.7 percent each. Malaysia is relatively flat.

On the Wall Street, stocks moved notably lower during trading on Tuesday, giving back ground following the rebound seen in the previous session.

The Nasdaq slid 180.12 points or 0.9 percent to 19,521.09, the S&P 500 decreased 50.39 points or 0.8 percent to 5,982.72 and the Dow fell 299.29 points or 0.7 percent to 42,215.80.

The major European markets all also moved to the downside on the day. While the German DAX Index slumped 1.1 percent, the French CAC 40 Index slid by 0.8 percent and the U.K.'s FTSE 100 Index decreased by 0.5 percent.

Crude oil prices soared on Tuesday, with the conflict between Israel and Iran showing no sign of retreat. West Texas Intermediate crude for July delivery shot up by $3.07 to settle at $74.84 per barrel.