Asian Markets Mostly Higher With Modest Gains

(RTTNews) - Asian stock markets are mostly higher on Thursday despite the negative cues overnight from Wall Street as risk appetite improved after British Prime Minister Theresa May said she has obtained cabinet support for her proposed Brexit deal to move forward. However, gains are modest in most markets. Crude oil prices slipped in Asian trades after rebounding overnight.

The Australian market is losing following the weak cues from Wall Street. Gains by resources stocks following higher commodity prices were more than offset by weakness in banking stocks.

The benchmark S&P/ASX 200 Index is declining 39.10 points or 0.68 percent to 5,693.70, after touching a low of 5,692.10 earlier. The broader All Ordinaries Index is down 37.30 points or 0.64 percent to 5,785.00. Australian stocks fell sharply on Wednesday as oil extended losses in Asian trading.

In the banking sector, ANZ Banking, Commonwealth Bank, Westpac and National Australia Bank are lower in a range of 0.2 percent to 0.9 percent.

Mining stocks are also mostly lower. Rio Tinto is losing almost 1 percent and BHP is edging down 0.1 percent, while Fortescue Metals is adding 0.2 percent.

Meanwhile, oil stocks are rebounding as oil prices snapped a twelve-day losing streak to rise overnight. Oil Search is adding 0.5 percent, Woodside Petroleum is rising more than 1 percent and Santos is advancing more than 2 percent.

Gold miners also advanced after gold prices rose overnight. Newcrest Mining is rising more than 2 percent and Evolution Mining is advancing almost 2 percent.

GrainCorp reported a 43.7 percent fall in full-year profit on lower revenues and higher energy costs. The grain handler's shares are losing more than 1 percent.

The CEO of REA Group, Tracy Fellows, is leaving the property classifieds company to head News Corp.'s global real estate unit in New York. REA Group's shares are advancing almost 1 percent.

Wesfarmers' shareholders are set to vote on the demerger of Coles later on Thursday following the annual general meeting, with Cole shares to be listed on the ASX on November 21. The company's shares are declining 0.5 percent.

On the economic front, the Australian Bureau of Statistics said that the unemployment rate in Australia came in at a seasonally adjusted 5.0 percent in October. That was unchanged from the September reading, although it was beneath expectations for 5.1 percent.

The Australian economy added 32,800 jobs last month - beating forecasts for 20,000 following the addition of 7,800 jobs in the previous month.

In the currency market, the Australian dollar is higher against the U.S. dollar on Thursday. The local currency was quoted at $0.7236, up from $0.7219 on Wednesday.

The Japanese market is declining, tracking the weak cues overnight from Wall Street and a stronger yen. Tech and exporters' shares are among the leading decliners.

The benchmark Nikkei 225 Index is losing 114.86 points or 0.53 percent to 21,731.62, after touching a low of 21,613.53 in early trades. Japanese shares ended a choppy session higher on Wednesday.

Tech stocks are mostly weak after a fall in shares of Apple overnight. Tokyo Electron is losing more than 1 percent and Alps Electric is down almost 1 percent, while Advantest is adding 0.2 percent. Shares of conglomerate SoftBank are lower by more than 2 percent.

The major exporters are also lower as the yen strengthened. Mitsubishi Electric is declining almost 2 percent, while Panasonic and Canon are losing more than 1 percent each. Sony is lower by almost 1 percent.

Among automakers, Toyota is down almost 1 percent and Honda is lower by 1 percent. In the banking sector, Mitsubishi UFJ Financial and Sumitomo Mitsui Financial are declining more than 3 percent each.

In the oil space, Inpex is down 0.8 percent, while Japan Petroleum is edging up less than 0.1 percent after crude oil prices rebounded overnight.

Among the other major gainers, Amada Holdings is rising 10 percent, Chiyoda Corp. is gaining more than 4 percent and Kuraray Co. is advancing almost 3 percent.

On the flip side, Oji Holdings and Shinsei Bank are losing more than 4 percent each, while Taiyo Yuden is lower by almost 4 percent.

In economic news, Japan will see third-quarter numbers for housing loans today.

In the currency market, the U.S. dollar is trading in the mid 113 yen-range on Thursday.

Elsewhere in Asia, New Zealand is also lower. Indonesia is rising more than 1 percent, while Shanghai, Singapore, South Korea, Malaysia, Hong Kong and Taiwan are all modestly higher.

On Wall Street, stocks closed lower on Wednesday as shares of Apple extended a recent downtrend after Guggenheim Partners downgraded its rating on the company's stock to Neutral from Buy amid expectations of a 5 percent drop in iPhone units sold in 2019. Negative sentiment may also have been generated by comments by Congresswoman Maxine Waters, D-Calif., who is expected to take over the powerful House Financial Services Committee in the next Congress.

The Dow fell 205.99 points or 0.8 percent to 25,080.50, the Nasdaq tumbled 64.48 points or 0.9 percent to 7,136.39 and the S&P 500 slid 20.60 points or 0.8 percent to 2,701.58.

The major European markets also moved to the downside on Wednesday. While the U.K.'s FTSE 100 Index dipped by 0.3 percent, the German DAX Index and the French CAC 40 Index slid by 0.5 percent and 0.7 percent, respectively.

Crude oil prices rose on Wednesday to snap a twelve-day losing streak, with traders looking ahead to the official crude inventory data from U.S. Energy Information Administration. WTI crude for December added $0.56 or 1 percent to settle at $56.25 a barrel on the New York Mercantile Exchange. In Asian trades, crude oil again declined $0.32 or 0.57 percent to $55.93.
See also:
Leave a comment
  • Latest
  • Read
  • Commented
Calendar Content
«    Февраль 2020    »