Asian Markets Trade Mostly Higher

(RTTNews) - Asian stock markets are trading mostly higher on Wednesday, following the mixed cues from Wall Street overnight, as traders remain optimistic about further interest rate cuts after US Fed Chair Jerome Powell signaled two more quarter-point interest-rate cuts this year, citing a sharp slowdown in hiring. Meanwhile, concerns about ongoing trade tensions between the U.S. and China are weighing on the markets. Asian markets closed mostly lower on Tuesday.

Powell cautioned that "there is no risk-free path for policy as we navigate the tension between our employment and inflation goals."

US President Donald Trump accused China of an "economically hostile act" by purposefully not buying U.S. soybeans and threatened to terminate business with China having to do with cooking oil and other elements of trade as retribution. Both sides have now tightened their grip on each other's shipping vessels by imposing special port charges.

China said the U.S. has continued to impose a series of new restrictive measures on China, which have seriously harmed China's interests and seriously undermined the atmosphere of the bilateral trade talks."

Australian shares are trading significantly higher on Wednesday, adding to the gains in the previous session, with the benchmark S&P/ASX 200 moving well above the 8,950 level, following the mixed cues from Wall Street overnight, with gains in mining and financial stocks partially offset by weakness in energy stocks.

The benchmark S&P/ASX 200 Index is gaining 73.30 points or 0.82 percent to 8,972.70, after touching a high of 8,989.90 earlier. The broader All Ordinaries Index is up 70.50 points or 0.77 percent to 9,279.00. Australian stocks ended modestly higher on Tuesday.

Among major miners, BHP Group, Fortescue and Rio Tinto are edging up 0.4 to 0.5 percent each, while Mineral Resources is gaining more than 1 percent.

Oil stocks are mostly lower. Woodside Energy and Santos are losing almost 1 percent each, while Origin Energy is edging down 0.2 percent. Beach energy is edging up 0.2 percent.

In the tech space, Afterpay owner Block is gaining more than 2 percent and WiseTech Global is adding almost 2 percent, while Appen is losing more than 1 percent and Xero is edging down 0.1 percent. Zip is flat.

Among the big four banks, Commonwealth Bank, ANZ Banking, Westpac and National Australia bank are all gaining almost 2 percent each. Among gold miners, Northern Star Resources and Newmont are adding more than 1 percent each, while Resolute Mining is edging up 0.2 percent and Genesis Minerals is gaining almost 2 percent. Evolution Mining is losing almost 3 percent.

In the currency market, the Aussie dollar is trading at $0.651 on Wednesday.

The Japanese stock market is trading significantly higher on Wednesday, reversing the losses in the previous two sessions, following the mixed cues from Wall Street overnight. The Nikkei 225 is moving above the 47,200 level, with gains across most sectors led by index heavyweights and technology stocks.

The benchmark Nikkei 225 Index closed the morning session at 47,463.31, up 615.99 points or 1.31 percent, after touching a high of 47,477.21 earlier. Japanese stocks ended sharply lower on Tuesday.

Market heavyweight SoftBank Group is gaining almost 3 percent and Uniqlo operator Fast Retailing is edging up 0.1 percent. Among automakers, Honda is edging up 0.2 percent and Toyota is gaining almost 1 percent.

In the tech space, Advantest is gaining almost 2 percent and Screen Holdings is advancing more than 4 percent, while Tokyo Electron is edging down 0.1 percent.

In the banking sector, Sumitomo Mitsui Financial is gaining almost 2 percent, Mitsubishi UFJ Financial is adding more than 1 percent and Mizuho Financial is edging up 0.5 percent.

Among the major exporters, Mitsubishi Electric is gaining more than 2 percent, while Canon and Sony are edging up 0.4 percent each. Panasonic is losing almost 1 percent.

Among other major gainers, Mercari is soaring almost 10 percent, Aeon is surging almost 8 percent, Kubota is gaining almost 5 percent and Hitachi is adding more than 4 percent, while Renesas Electronics and Sumitomo Metal Mining are advancing almost 4 percent each. Sapporo Holdings is up more than 3 percent, while Mazda Motor, Daiichi Sankyo and Yaskawa Electric are rising almost 3 percent each.

Conversely, Ryohin Keikaku is losing more than 4 percent.

In the currency market, the U.S. dollar is trading in the lower 151 yen-range on Wednesday.

Elsewhere in Asia, Hong Kong and South Korea are up 1.6 percent each, while New Zealand, China, Singapore, Malaysia, Indonesia and Taiwan are higher by between 0.2 and 0.7 percent each.

On the Wall Street, stocks saw substantial volatility over the course of the trading day on Tuesday following the notable rebound seen in the previous session. The major averages recovered from a significant early pullback only to once again come under pressure late in the session.

The major averages eventually ended the session mixed. While the Dow climbed 202.88 points or 0.4 percent to 46,270.46 after plunging more than 600 points in early trading, the S&P 500 dipped 10.41 points or 0.2 percent to 6,644.31 and the Nasdaq slid 172.91 points or 0.8 percent to 22,521.70.

The major European markets also ended mixed on the day. The German DAX Index is down by 0.7 percent and the French CAC 40 Index is down by 0.2 percent, although the U.K.'s FTSE 100 Index is just above the unchanged line.

Crude oil prices pulled back sharply on Tuesday as renewed trade tensions between the U.S. and China have heightened, while forecasts predicting low demand in the months ahead also weighed. West Texas Intermediate crude for November delivery was down $0.70 or 1.18 percent at $58.79 per barrel.