Lending markets

Asian markets are mostly trading lower

(RTTNews) – Asian stock markets are mostly trading lower on Tuesday, despite broadly positive signals from Wall Street overnight, amid growing prospects of the Federal Reserve resorting to aggressive policy tightening to combat global warming. rise in inflation. Traders remain cautious ahead of this week’s key US inflation report, which will offer clues to the outlook for interest rates. Asian markets mostly closed higher on Monday.

Market participants are also awaiting a European Central Bank (ECB) policy meeting on Thursday to confirm whether the central bank will raise rates at the July 21 policy meeting.

Australia’s stock market is significantly lower on Tuesday, extending losses from the previous session, with the benchmark S&P/ASX 200 index falling below the 7,200 level, despite broadly positive signals from Wall Street overnight, drawn in largely by gold miners, finance and technology. shares. Traders are cautious as they brace for back-to-back interest rate hikes at the Reserve Bank of Australia’s monetary policy meeting later today. The benchmark S&P/ASX 200 lost 63.20 points or 0.88% to 7,143.10, after hitting a low of 7,137.60 earlier. The broader All Ordinaries index is down 66.90 points or 0.90% at 7,366.20. Australian shares closed slightly lower on Monday.

Among the major miners, Rio Tinto gains almost 1%, Mineral Resources is up almost 2% and OZ Minerals adds more than 1%, while Fortescue Metals loses almost 1%. The BHP group is flat.

Oil inventories are lower, with Beach Energy and Origin Energy down 0.5% each, while Santos is down more than 1%. Woodside Energy is down 0.1%.

Among tech stocks, Xero is down more than 1% and Zip is slipping nearly 4%, while Afterpay owner Block and WiseTech Global are slipping nearly 2% each. Appen rose 0.5%.

Gold diggers are weak. Newcrest Mining and Resolute Mining are down more than 1% each, while Northern Star Resources and Evolution Mining are down almost 1% each. Gold Road Resources fell more than 2%.

Among the big four banks, Commonwealth Bank and National Australia Bank lost more than 1% each, while Westpac was down almost 1% and ANZ Banking was down 0.4%.

In economic news, the total number of building permits issued in Australia fell by 2.4% in April, seasonally adjusted, the Australian Bureau of Statistics said on Tuesday – standing at 14,908. This was in line expectations after the 19.2% drop in March. On a yearly basis, total housing approvals decreased by 32.4%, home approvals fell 33.7%, and housing approvals excluding homes fell 28.7% .

The Reserve Bank of Australia will also wrap up its monetary policy meeting on Tuesday and then announce its interest rate decision, underscoring a subdued day for economic activity in Asia-Pacific. The RBA is expected to raise its benchmark lending rate by 25 basis points, from 0.35% to 0.60%.

In the currency market, the Australian dollar is trading at $0.717 on Tuesday.

The Japanese stock market is slightly higher in choppy trading on Tuesday, extending gains from the previous two sessions, with the Nikkei 225 breaking above the 28,000 mark, following broadly positive signals from Wall Street overnight as Japan braced for a welcome international tourists. this weekend, which will stimulate the economy. The government also plans to relaunch its “Go To Travel” grant scheme this month to encourage domestic travel.

The benchmark Nikkei 225 closed the morning session at 28,031.15, up 115.26 points or 0.41%, after hitting a high of 28,052.42 and a low of 27,863.38. earlier. Japanese stocks ended slightly higher on Monday.

Market heavyweight SoftBank Group gained more than 1%, while operator Uniqlo Fast Retailing fell 0.4%. Among automakers, Honda gains nearly 3%, while Toyota gains 1.5%.

In technology, Advantest gains more than 2% and Screen Holdings gains more than 1% each, while Tokyo Electron loses almost 2%. In banking, Sumitomo Mitsui Financial gains nearly 2%, while Mitsubishi UFJ Financial and Mizuho Financial each gain more than 2%.

Major exporters are higher, with Sony up 0.5%, while Panasonic and Canon gain nearly 1% each. Mitsubishi Electric is flat. Among the other top gainers, Mazda Motor and NTN each gained more than 4%, while Casio Computer, JTEKT and Hitachi Construction Machinery fell nearly 4% each. Unitika, Subaru, Konica Minolta and Taiyo Yuden add more than 3% each.

Conversely, Kikkoman and NTT Data are losing more than 2% each.

In economic news, average household spending in Japan fell 1.7 percent year-on-year in April, the Interior and Communications Ministry said Tuesday, to 304,510 yen. That missed expectations of a 0.8% drop after the 2.3% decline the previous month. On a monthly basis, household spending rose 1.0% – again below expectations of a 1.3% increase and down from 4.1% in March. The average monthly income per household was 539,738 yen, down 3.5% from a year earlier.

In the currency market, the US dollar is trading in the upper range of 132 yen on Tuesday.

Elsewhere in Asia, New Zealand and South Korea are up 1.2 and 1.4%, respectively. Hong Kong, Singapore, Malaysia and Taiwan are lower by 0.2 to 0.6% each. Indonesia and China are up 0.4 and 0.2%, respectively.

On Wall Street, stocks closed higher on Monday despite early highs amid somewhat weak volumes as traders largely stayed away due to a lack of major economic data. The easing of coronavirus restrictions in Shanghai and reports that the Biden administration is considering the possibility of lifting some tariffs on China to fight inflation helped boost sentiment.

The major averages all closed in positive territory despite early highs. The Dow Jones ended the session with a gain of 16.08 points or 0.05% at 32,915.78, the S&P 500 ended with a gain of 12.89 points or 0.31% at 4,121.43 and the Nasdaq stabilized at 12,061.37, up 48.64 points or 0.4% from the previous close.

The main European markets all also moved higher on the day. Britain’s FTSE 100 rose 1%, Germany’s DAX 1.34% and France’s CAC 40 0.98%.

Crude oil futures pared early gains and stabilized on Monday after Saudi Arabia significantly raised crude prices for July. West Texas Intermediate crude oil futures for July ended down $0.37 or 0.3% at $118.50 after climbing to $121 a barrel earlier in the session.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.