FX.co ★ Asian Markets Trade Mixed

Asian stock markets are exhibiting mixed trading on Thursday, influenced by broadly negative signals from global markets overnight. This follows the release of the US Federal Reserve's recent monetary policy meeting minutes, which suggested that officials anticipate keeping interest rates at current levels longer than previously thought. Markets across Asia closed with mixed results on Wednesday.

Meeting participants noted disappointing inflation readings in the first quarter and indicators of strong economic momentum. They assessed that it would take longer than previously expected to gain "greater confidence" that inflation is moving sustainably toward the 2 percent target.

Participants also reiterated that the future path of interest rates would depend on incoming data, the evolving outlook, and the balance of risks.

In Australia, the stock market is significantly lower on Thursday, extending losses from the previous two sessions, as negative cues from global markets weigh on investor sentiment. The benchmark S&P/ASX 200 is falling below the 7,800 level, with most sectors, particularly mining and energy stocks, under pressure due to tumbling commodity prices.

The S&P/ASX 200 Index is down 47.80 points, or 0.61 percent, to 7,800.30, after hitting a low of 7,764.60 earlier. The broader All Ordinaries Index is also down, losing 46.20 points, or 0.57 percent, to 8,072.10. Australian stocks ended slightly lower on Wednesday.

Among major miners, Rio Tinto and Mineral Resources are each down nearly 2 percent, while Fortescue Metals has declined by 1.5 percent. BHP Group is losing almost 3 percent after Anglo American rejected its third offer, giving BHP a week to come up with an improved fourth bid.

Oil stocks are mostly lower. Woodside Energy is down over 1 percent, Beach Energy and Santos are also down more than 1 percent each, while Origin Energy is marginally up by 0.1 percent.

In the tech sector, Block, the owner of Afterpay, is falling by 4.5 percent and Zip is losing over 3 percent. WiseTech Global and Appen are flat, while Xero is surging over 7 percent after reporting a significant increase in full-year revenues and providing an optimistic outlook for fiscal 2025.

Among the big four banks, the Commonwealth Bank is down nearly 1 percent, with ANZ Banking, Westpac, and National Australia Bank all declining by more than 1 percent each.

Gold miners are also experiencing declines. Evolution Mining is down nearly 4 percent, Gold Road Resources by over 2 percent, and both Newmont and Northern Star Resources by more than 3 percent each. Resolute Mining is up almost 1 percent.

Other news highlights include shares of Nufarm slipping by 6.5 percent after the agricultural tech company reported reduced profits and revenue for the half-year. Shares of The Reject Shop are down over 5 percent after the discount retailer issued a warning about a significant drop in earnings, despite recent sales improvements.

In economic news, the Judo Bank revealed that Australia's manufacturing sector continued to contract in May, at a steady pace, with a manufacturing PMI score of 49.6—unchanged from April and below the 50 mark that separates expansion from contraction. The services PMI eased to 53.1 in May from 53.6 in April, and the composite PMI fell to 52.6 from 53.0 in April.

In the currency market, the Australian dollar is trading at $0.662 on Thursday.

In Japan, the market is significantly higher on Thursday, recovering losses from the previous two sessions despite broadly negative cues from global markets overnight. The Nikkei 225 is moving well above the 38,800 level, with gains across most sectors led by index heavyweights and technology stocks.

The benchmark Nikkei 225 Index concluded the morning session at 38,913.48, up 296.38 points, or 0.77 percent, after touching a high of 38,938.67 earlier. Japanese shares had ended significantly lower on Wednesday.

Market heavyweight SoftBank Group is up over 3 percent, and Uniqlo operator Fast Retailing is edging up 0.5 percent. Among automakers, Toyota is marginally up 0.1 percent, and Honda is also edging up 0.4 percent.

In the tech sector, Advantest is gaining nearly 4 percent, Tokyo Electron is adding 1.5 percent, and Screen Holdings is up nearly 2 percent.

In the banking sector, Sumitomo Mitsui Financial is down almost 1 percent, while Mizuho Financial and Mitsubishi UFJ Financial are each up 0.1 percent.

Among major exporters, Canon and Mitsubishi Electric are up nearly 2 percent each, while Sony has added nearly 1 percent, and Panasonic is up over 1 percent.Several major stocks displayed significant gains, with Teijin soaring 7.5 percent and Disco surging almost 6 percent. Yamato Holdings, Socionext, and Renesas Electronics each saw an increase of nearly 4 percent, while Astellas Pharma, NTT Data, and Sumco gained approximately 3 percent each.

Conversely, Sumitomo Metal Mining was down almost 4 percent, and Dowa Holdings, NEXON, and Mitsubishi Materials each declined by more than 3 percent. Sumitomo Realty & Development experienced a downturn of nearly 3 percent.

In the currency market, the U.S. dollar traded in the higher 156 yen range on Thursday.

Elsewhere in Asia, markets in New Zealand, Singapore, Malaysia, and Taiwan experienced gains ranging from 0.1 to 0.5 percent. However, markets in Hong Kong and China saw declines of 1.6 and 1.0 percent, respectively. Indonesia remained closed for Wesak Day, while South Korea's market was relatively flat.

On Wall Street, stocks lacked direction for much of Wednesday's trading session but came under pressure following the release of the Federal Reserve's latest monetary policy meeting minutes. The major averages recovered from their worst levels toward the end of the session but still closed in negative territory. The Dow fell by 201.95 points, or 0.5 percent, to 39,671.04, the S&P 500 dropped 14.40 points, or 0.3 percent, to 5,307.01, and the Nasdaq decreased by 31.08 points, or 0.2 percent, to 16,801.54.

European markets also saw declines. The German DAX Index dipped by 0.3 percent, while the French CAC 40 Index and the UK's FTSE 100 Index both fell by 0.6 percent.

Crude oil prices reached a two-month low on Wednesday after U.S. data indicated an unexpected increase in crude oil inventories last week. West Texas Intermediate crude oil futures for July ended down by $1.09, or 1.4 percent, to settle at $77.57 a barrel.