FX.co ★ Asian Markets Track Global Markets Higher

Asian stock markets are trading mostly higher on Thursday, buoyed by the broadly positive cues from global markets overnight. This uptick is driven by optimism surrounding a potential interest rate cut by the U.S. Federal Reserve in September, ahead of the release of closely watched U.S. consumer price inflation data expected later today. The data is anticipated to show continued moderation in June's inflation rates. Notably, Asian markets ended Wednesday's session with mixed results.

During congressional testimony, U.S. Federal Reserve Chair Jerome Powell indicated that favorable economic data would bolster the central bank's confidence in achieving its 2 percent inflation target, potentially leading to an interest rate cut. Powell also highlighted the risks associated with maintaining elevated interest rates for too long, which could threaten economic growth. Conversely, reducing monetary restraint too late or insufficiently could hamper economic activity and employment.

In Australia, the stock market is significantly higher on Thursday, reversing losses from the previous session, and aligning with the overall positive global market trends. The benchmark S&P/ASX 200 is approaching the 7,900 level, driven by gains across various sectors, particularly gold miners, financial, and technology stocks.

The S&P/ASX 200 Index is up 69.80 points or 0.89 percent at 7,886.60, after peaking at 7,902.60 earlier. Meanwhile, the broader All Ordinaries Index has increased by 70.90 points or 0.88 percent to 8,129.20. Australian stocks had closed moderately lower on Wednesday.

In the mining sector, key players like Rio Tinto, Fortescue Metals, and BHP Group are edging up by 0.2 to 0.5 percent, while Mineral Resources is gaining over 1 percent.

Oil stocks are also trending higher, with Woodside Energy and Beach Energy up by more than 1 percent each, Origin Energy adding almost 1 percent, and Santos inching up by 0.5 percent.

In technology, Xero is rallying over 3 percent, Appen is up by more than 2 percent, Zip is climbing almost 3 percent, and WiseTech Global increasing by nearly 1 percent. However, Afterpay's parent company Block is slightly down by 0.1 percent.

Among the major banks, Commonwealth Bank and Westpac are up by more than 1 percent each, ANZ Banking is marginally higher by 0.3 percent, and National Australia Bank is advancing almost 2 percent.

Gold miners are seeing gains too, with Evolution Mining and Gold Road Resources up almost 1 percent each, Northern Star Resources adding over 2 percent, Resolute Mining rising over 3 percent, and Newmont advancing nearly 4 percent.

In other news, Telix Pharmaceuticals' shares are soaring 12 percent following changes to U.S. regulations around payments for diagnostic radiotherapy treatments.

Meanwhile, uranium miners Boss Energy and Paladin Energy are surging almost 7 percent after an uptick in nuclear fuel prices. On the currency front, the Aussie dollar is trading at $0.676.

Japanese markets too are significantly higher on Thursday, continuing gains from the previous two sessions and backed by positive global market trends. The Nikkei 225 has surpassed the 42,100 level, hitting all-time highs, propelled by gains in index heavyweights and exporter stocks.

The benchmark Nikkei 225 Index ended the morning session at 42,179.84, up 347.85 points or 0.83 percent, hitting an all-time high of 42,426.77 earlier. Japanese shares had finished notably higher on Wednesday.

Key market players such as SoftBank Group are up nearly 1 percent, and Fast Retailing is up almost 2 percent. Among automakers, Toyota is marginally down by 0.1 percent, while Honda is up nearly 1 percent.

In technology, Advantest is down over 1 percent, Screen Holdings is down over 2 percent, while Tokyo Electron is slightly up by 0.3 percent.

In banking, Sumitomo Mitsui Financial is down by 0.3 percent, while Mitsubishi UFJ Financial and Mizuho Financial are up by 0.1 percent each.

Major exporters are also doing well, with Canon up by 0.4 percent, Mitsubishi Electric up nearly 1 percent, Sony up by 3.5 percent, and Panasonic advancing more than 2 percent.

Notable gainers include NTN, up nearly 4 percent, and Dowa Holdings, Trend Micro, Mitsubishi Motors, Sumco, and Nitto Denko, all up by over 3 percent. Alps Alpine, Subaru, Murata Manufacturing, Shionogi & Co., and Sumitomo Chemical are also advancing nearly 3 percent each. Conversely, Mercari is losing nearly 6 percent.

In economic news, Japan's core machine orders fell by a seasonally adjusted 3.2 percent month-on-month in May, according to the Cabinet Office. This decline to 857.8 billion yen misses forecasts that had predicted a 0.9 percent increase following a 2.9 percent decline in April.On an annual basis, orders surged by 10.8 percent, surpassing the expected 7.2 percent and significantly up from the previous month's 0.7 percent. For Q2 2024, core machine orders are projected to decline by 1.6 percent quarter-on-quarter and 2.8 percent year-on-year, reaching 2,581.0 billion yen.

In the currency markets, the U.S. dollar is trading within the higher 161 yen range as of Thursday.

Across Asia, equity markets showed positive momentum. Hong Kong and Taiwan saw gains of 1.3 percent each. New Zealand, China, South Korea, Singapore, and Malaysia posted increases ranging from 0.3 to 0.8 percent. Indonesia remained relatively unchanged. On Wall Street, stocks experienced a sharp upward movement on Wednesday following a lackluster performance in the previous session, with the S&P 500 closing above 5,600 for the first time in history.

The major indices continued their ascent towards the session's end, closing near their highs. The Nasdaq climbed 218.16 points, or 1.2 percent, to finish at 18,647.45. The Dow Jones Industrial Average soared by 429.39 points, or 1.1 percent, ending at 39,721.36. Meanwhile, the S&P 500 rose by 56.93 points, or 1.0 percent, to conclude at 5,633.91.

European markets also ended the day on a positive note. The U.K.'s FTSE 100 Index increased by 0.7 percent, while Germany's DAX Index and France's CAC 40 Index both gained 0.9 percent.

Crude oil prices edged higher on Wednesday after data revealed a larger-than-expected drop in U.S. crude inventories for the week. West Texas Intermediate Crude oil futures for August settled at $82.10 per barrel, up by $0.69.