Asian Markets Mixed Amid Cautious Trade

Asian stock markets are trading mixed on Wednesday, following the mixed cues overnight from Wall Street, reflecting economic optimism following news that the US Senate approved a $1 trillion infrastructure bill. Traders also remained concerned about the rapid spread of the delta variant of the coronavirus in the region. Asian Markets closed mostly higher on Tuesday.

Traders also cautiously await the reading on U.S. consumer price inflation for July later in the day for directional cues on the global economic recovery. The inflation data could have an impact on the outlook for monetary policy.

The Australian stock market is modestly higher on Wednesday, extending the winning streak of the previous five sessions, with the benchmark S&P/ASX 200 just below the 7,600 level near fresh all-time highs, despite the mixed cues overnight from Wall Street, aided by materials, financials and energy stocks.

Traders are getting restless amid concerns about the worsening domestic coronavirus situation in New South Wales and the extended lockdown, with 344 new cases reported on Tuesday. Victoria has recorded 20 new cases of COVID-19, with 118 active cases of coronavirus across Victoria. Queensland records four new locally acquired virus cases.

The benchmark S&P/ASX 200 Index is gaining 27.40 points or 0.36 percent to 7,590.00, after touching an all-time high of 7,615.10 earlier. The broader All Ordinaries Index is up 29.90 points or 0.38 percent to 7,860.30. Australian stocks ended modestly higher on Tuesday.

Among major miners, BHP Group and Fortescue Metals are gaining more than 2 percent each, while Rio Tinto is adding almost 2 percent. OZ Minerals is up almost 1 percent.

Shares in Mineral Resources are losing almost 5 percent even after beating market expectations with a 230 percent increase in post-tax profit and a fully franked final dividend of $1.75.

Oil stocks are higher. Oil Search is gaining more than 1 percent, Woodside Petroleum is adding almost 1 percent and Beach energy is up more than 2 percent. Origin Energy and Santos are higher by more than 1 percent each.

In the tech space, WiseTech Global is losing more than 1 percent, Appen is down almost 1 percent and Xero and Afterpay are declining almost 2 percent.

Among the big four banks, Westpac is gaining almost 1 percent, while Commonwealth Bank, National Australia Bank and ANZ Banking are adding more than 1 percent each.

The Commonwealth Bank has doubled its dividend to $2 and announced a $6 billion share buyback after reporting a 20 percent higher full-year profit of $8.65 billion.

The Reserve Bank of New Zealand (RBNZ) has issued a formal warning to Westpac Banking Corp’s local unit for failing to report almost 8,000 transactions as required by anti-money laundering and counter-terrorism laws.

Among gold miners, Evolution Mining is edging down 0.3 percent and Resolute Mining is down almost 2 percent, while Newcrest Mining, Gold Road Resources and Northern Star Resources are losing more than 1 percent each.

Shares in Iress are gaining almost 5 percent after the software firm granted private equity giant EQT exclusive due diligence as it come back this morning with an improved $3.03 billion offer.

Kangaroo Island Plantation and Timber (KIPT) has been refused permission by the South Australian government to build a deep-water sea port. However, the stock is gaining more than 5 percent.

In economic news, consumer confidence in Australia remains weak in August, the latest survey from Westpac Bank showed on Wednesday as its sentiment index lost 4.4 percent to a score of 104.1, down from 108.8 in July. Confidence has declined as three major cities in the country were in lockdowns, with all index components declining.

In the currency market, the Aussie dollar is trading at $0.735 on Wednesday.

The Japanese stock market is significantly higher on Wednesday, extending the gains in the previous three sessions, with the benchmark Nikkei index breaking above the 28,000 mark, despite the mixed cues overnight from Wall Street, even as traders remain extremely concerned as the country continues to struggle to contain the rapid spread of the delta variant of the coronavirus.

The benchmark Nikkei 225 Index closed the morning session at 28,069.28, up 181.13 points or 0.65 percent, after touching a high of 28,146.88 earlier. Japanese stocks closed modestly higher on Tuesday.

Market heavyweight SoftBank Group is losing almost 2 percent, while Uniqlo operator Fast Retailing is gaining almost 2 percent. Among automakers, Honda is gaining more than 1 percent and Toyota is adding almost 1 percent.

SoftBank Group posted a net profit decline of nearly 40 percent in the April-June quarter, following the prior year’s one-off profit from the sale of shares in its US mobile phone subsidiary.

In the tech space, Screen Holdings is losing almost 3 percent, Tokyo Electron is declining more than 2 percent and Advantest is down more than 3 percent.

In the banking sector, Sumitomo Mitsui Financial is gaining almost 3 percent, Mitsubishi UFJ Financial is adding more than 3 percent and Mizuho Financial is up more than 2 percent.

Among the major exporters, Panasonic and Mitsubishi Electric are gaining almost 1 percent each, while Canon and Sony are flat.

Among the other major gainers, Toho Zinc gaining almost 14 percent, Bridgestone is adding almost 8 percent and Taiheiyo Cement is up more than 6 percent, while Kawasaki Kisen Kaisha and Daiichi Sankyo are higher by almost 6 percent each. Yokohama Rubber and Yokogawa Electric are gaining almost 5 percent each, while J. Front Retailing, Pacific Metals, Suzuki Motor, Daiwa House Industry and Marui Group are adding more than 4 percent each. Kobe Steel, Mitsui Mining & Smelting, Mitsui Mining & Smelting are also up almost 4 percent each.

Conversely, Sumco is losing almost 5 percent, while Kirin Holdings and Showa Denko K.K. are down almost 3 percent each. Taiyo Yuden is declining more than 2 percent.

In the currency market, the U.S. dollar is trading in the higher 110 yen-range on Wednesday.

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

On Wall Street, stocks turned in another mixed performance during trading on Tuesday after closing on opposite sides of the unchanged line for two straight sessions. While the Dow and the S&P 500 reached new record highs, the tech-heavy Nasdaq moved to the downside.

The Dow moved higher early in the session and remained firmly positive throughout the day before closing up 162.82 points or 0.5 percent to 35,264.67. The S&P 500 fluctuated over the course of the session but managed to inch up 4.40 points or 0.1 percent to 4,436.75. Meanwhile, the Nasdaq came under pressure after seeing initial strength and ended the day down 72.09 points or 0.5 percent at 14,788.09.

Meanwhile, the major European markets also moved to the upside on the day. While the U.K.’s FTSE 100 Index climbed by 0.4 percent, the German DAX Index ticked up by 0.2 percent and the French CAC 40 Index inched up by 0.1 percent.

Crude oil futures settled sharply higher Tuesday, recovering from recent losses as data showing a surge in fuel demand in India in July pushed up prices. West Texas Intermediate Crude oil futures for September ended up by $1.81 or 2.7 percent at $68.29 a barrel.

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