Asian Markets Trade Mostly Higher

(RTTNews) - Asian stock markets are trading mostly higher on Monday, following the mixed cues from Wall Street on Friday, as traders remain cautious ahead of the anticipated interest rate cut after recent US data signaled softer labor conditions and muted inflation. The escalating geopolitical concerns in the Middle East are also weighing on market sentiment. Asian markets closed mostly higher on Friday.

The Fed is widely expected to lower interest rates by at least a quarter point at its monetary policy meeting on Tuesday and Wednesday. Traders will pay close attention to the Fed's accompanying statement as well as Fed Chair Jerome Powell's post-meeting comments for clues about the likelihood of more rate cuts later in the year.

The CME Group's FedWatch Tool is currently indicating a 96.4 percent chance the Fed will cut rates by 25 basis points and a slim 3.6 percent chance of a half-point rate cut.

The Australian stock market is modestly lower on Monday, giving up the gains in the previous session, following the mixed cues from Wall Street on Friday. The benchmark S&P/ASX 200 index is falling below the 8,850.00 level, with weakness in mining stocks and a mixed performance across other sectors.

The benchmark S&P/ASX 200 Index is losing 30.30 points or 0.34 percent to 8,834.60, after hitting a low of 8,794.00 earlier. The broader All Ordinaries Index is down 26.90 points or 0.30 percent to 9,101.80. Australian stocks closed notably higher on Friday.

Among the major miners, Rio Tinto is edging up 0.1 percent and Mineral Resources is gaining almost 1 percent, while and BHP Group and Fortescue edging down 0.1 to 0.3 percent each.

Oil stocks are mostly higher. Woodside Energy is edging up 0.2 percent and Santos is gaining almost 1 percent, while Beach energy is edging down 0.4 percent. Origin Energy is flat.

Among tech stocks, Afterpay owner Block is declining more than 1 percent and Xero is edging down 0.1 percent, while Zip is gaining almost 1 percent and WiseTech Global is advancing 3.5 percent. Appen is flat.

Gold miners are lower. Northern Star Resources and Newmont are losing almost 2 percent each, while Resolute Mining is slipping more than 3 percent, Evolution Mining are declining more than 5 percent and Gold Road Resources is edging down 0.3 percent.

Among the big four banks, Commonwealth Bank and ANZ Banking are losing almost 1 percent each, while National Australia Bank and Westpac are edging up 0.2 to 0.3 percent each. In the currency market, the Aussie dollar is trading at $0.665 on Monday.

The Japanese stock market is closed on account of Respect For The Aged Day on Monday. Japanese shares ended significantly higher on Friday.

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

Elsewhere in Asia, China, Hong Kong, South Korea and Indonesia are higher by between 0.1 and 0.6 percent each, while New Zealand and Taiwan are down 0.4 and 0.7 percent, respectively. Malaysia and Singapore are relatively flat.

On Wall Street, stock indexes continued to turn in a mixed performance throughout the trading day on Friday after moving in opposite directions early in the session. While the tech-heavy Nasdaq climbed to a new record closing high, the Dow moved back to the downside.

The Nasdaq ended the session off its best levels of the day but still closed up 98.03 points or 0.4 percent at 22,141.10. The Dow, on the other hand, slid 273.78 points or 0.6 percent to 45,834.22 and the S&P 500 edged down 3.18 points or 0.1 percent to 6,584.29.

Meanwhile, the major European markets ended the day roughly flat. While the U.K.'s FTSE 100 Index dipped by 0.2 percent, the French CAC 40 Index and the German DAX Index both closed near the unchanged line.

Crude oil prices moved higher Friday as concerns over supply side disruptions linger, with the Russia-Ukraine war intensifying and a new conflict brewing in the Middle East. West Texas Intermediate crude for October delivery was up $0.31 or 0.50 percent at $62.68 per barrel.