Asian Markets Trade Mixed

(RTTNews) - Asian stock markets are trading mixed on Monday, following the broadly positive cues from Wall Street on Friday, as traders remain cautious ahead of the US Fed's monetary policy decision later in the week even though they are optimistic of an interest rates cut. They will look ahead to post meeting comments by Fed officials for hints about the outlook for interest rates into the next year. Asian markets closed mixed on Friday.

The Australian stock market is modestly lower on Monday, reversing the gains in the previous session, despite the broadly positive cues from Wall Street on Friday. The benchmark S&P/ASX 200 index is staying well below the 8,650.00 level, with weakness across most sectors led by gold miners and energy stocks.

Traders remain cautious ahead of the Reserve Bank of Australia's policy decision on Tuesday, where the RBA is widely expected to maintain the cash rate at its final meeting of the year after three rate cuts this year.

The benchmark S&P/ASX 200 Index is losing 25.30 points or 0.29 percent to 8,609.30, after hitting a low of 8,595.60 earlier. The broader All Ordinaries Index is down 26.10 points or 0.29 percent to 8,900.00. Australian stocks closed modestly higher on Friday.

Among the major miners, BHP Group and Fortescue are edging down 0.3 to 0.5 percent each, while Rio Tinto is declining almost 2 percent. Mineral Resources is gaining more than 2 percent.

Oil stocks are mostly lower. Beach energy is losing more than 1 percent, while Santos and Origin Energy are down almost 1 percent each. Woodside Energy is flat.

Among tech stocks, Afterpay owner Block is losing more than 2 percent and Xero is edging down 0.5 percent. Zip is adding almost 2 percent, while Appen and WiseTech Global are gaining almost 1 percent each.

Gold miners are weak. Northern Star Resources is declining almost 2 percent, Resolute Mining is edging down 0.5 percent and Newmont is slipping more than 2 percent, while Genesis Minerals and Evolution Mining are losing almost 1 percent each.

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

In the currency market, the Aussie dollar is trading at $0.664 on Monday.

The Japanese stock market is trading slightly lower on Monday, extending the losses in the previous session, despite the broadly positive cues from Wall Street on Friday, with the Nikkei 225 falling below the 50,450 level, with weakness is index heavyweights, financial and technology stocks partially offset by gains in automakers and exporter stocks.

The benchmark Nikkei 225 Index closed the morning session at 50,473.84, down 18.03 points or 0.04 percent, after hitting a low of 50,224.65 earlier. Japanese shares ended significantly lower on Friday.

Market heavyweight SoftBank Group is losing more than 2 percent and Uniqlo operator Fast Retailing is edging down 0.2 percent. Among automakers, Honda is edging up 0.1 percent and Toyota is gaining almost 1 percent.

In the tech space, Advantest is declining more than 1 percent, Screen Holdings is edging down 0.4 percent and Tokyo Electron is down almost 1 percent.

In the banking sector, Sumitomo Mitsui Financial is losing almost 1 percent, Mitsubishi UFJ Financial is declining more than 1 percent and Mizuho Financial is edging down 0.5 percent.

The major exporters are mostly higher. Mitsubishi Electric is gaining more than 2 percent, while Panasonic and Canon are adding almost 1 percent each. Sony is losing almost 1 percent.

Among the other major losers, Aeon is declining almost 5 percent, Lasertec is losing more than 3 percent and Resonac Holdings is down almost 3 percent.

Conversely, Secom, Fuji Electric and Toppan Holdings are advancing more than 4 percent each, while Japan Steel Works and Mitsubishi Estate are gaining almost 4 percent each. BayCurrent is adding almost 3 percent.

In economic news, Japan's gross domestic product contracted a seasonally adjusted 0.6 percent on quarter in the third quarter of 2025, the Cabinet Office said in Monday's preliminary reading. That missed forecasts for a decline of 0.4 percent following the 0.5 percent increase in the three months prior. On an annualized basis, GDP declined 2.3 percent - again missing expectations for a fall of 2.0 percent following the 2.2 percent gain in the second quarter.

Capital expenditure was down 0.2 percent on quarter, missing forecasts for an increase of 1.0 percent following the 0.6 percent gain in the previous three months. External demand was down 0.2 percent on quarter and private consumption was up 0.2 percent on quarter, while the GDP price index jumped 3.4 percent on year.

Meanwhile, Overall bank lending in Japan was up 4.2 percent on year in November, the Bank of Japan said on Monday - coming in at 652.547 trillion yen. That exceeded expectations for an increase of 4.0 percent and was up from 4.1 percent in October. Excluding trusts, lending was up 4.5 percent at 573.647 trillion yen - accelerating from 4.4 percent in the previous month.

In the currency market, the U.S. dollar is trading in the lower 155 yen-range on Monday.

Elsewhere in Asia, New Zealand, China, Taiwan and Indonesia are higher by between 0.2 and 0.6 percent each, while Hong Kong, Singapore, South Korea and Malaysia are lower by between 0.1 and 0.7 percent each.

On Wall Street, stocks saw modest strength during trading on Friday after ending Thursday's choppy trading session little changed. With the upward move, the Nasdaq and the S&P 500 reached their best closing levels in a month.

The major averages gave back ground after an early advance but remained in positive territory. The Dow rose 104.05 points or 0.2 percent to 47,954.99, the Nasdaq climbed 72.99 point or 0.3 percent to 23,578.13 and the S&P 500 increased 13.28 points or 0.2 percent to 6,870.40.

Meanwhile, the major European markets also turned mixed on the day. While the German DAX Index climbed by 0.6 percent, the French CAC 40 Index edged down by 0.1 percent and the U.K.'s FTSE 100 Index fell by 0.5 percent.

Crude oil prices edged higher on Friday on persistent geopolitical tension due to the Russia-Ukraine war and the U.S.-Venezuela standoff. West Texas Intermediate crude for January delivery was up $0.35 or 0.59 percent at $60.02 per barrel.