Asian Markets Mixed Amid Cautious Trades

(RTTNews) - Asian stock markets are trading mixed on Tuesday, following the broadly positive cues from Wall Street overnight, as traders remain cautious and optimistic about an interest rate cut by the US Fed ahead of the Fed's monetary policy announcement on Wednesday. Traders have already factored in a rate cut by the US Fed as a "certainty." Asian markets closed mixed on Monday.

With recent data showing relatively subdued inflation and a weakening labor market, the Fed is widely expected to lower interest rates by at least a quarter-point. Traders are likely to pay close attention to the Fed's accompanying statement as well as post-meeting comments by Fed Chair Jerome Powell for clues about the likelihood of further rate cuts.

CME Group's FedWatch Tool is currently indicating a 96.4 percent chance the Fed will cut rates by 25 basis points and a slim 3.6 percent chance of a half-point rate cut.

The Australian stock market is trading modestly higher on Tuesday, recouping the losses in the previous session, following the broadly positive cues from Wall Street overnight. The benchmark S&P/ASX 200 is moving well above the 8,850 level, with gains across most sectors led by mining and technology shares.

The benchmark S&P/ASX 200 Index is gaining 21.40 points or 0.24 percent to 8,874.40, after touching a high of 8,888.00 earlier. The broader All Ordinaries Index is up 26.70 points or 0.29 percent to 9,147.60. Australian stocks closed modestly lower on Monday.

Among the major miners, BHP Group is gaining more than 1 percent and Mineral Resources is surging more than 4 percent, while Rio Tinto and Fortescue are advancing almost 2 percent each. Oil stocks are mixed. Santos and Woodside Energy are edging down 0.3 percent each, while Beach energy is gaining almost 2 percent and Origin Energy is edging up 0.2 percent.

Among tech stocks, Afterpay owner Block is gaining almost 2 percent, Appen is advancing almost 4 percent, Zip is adding almost 1 percent and Xero is edging up 0.3 percent, while WiseTech Global is edging down 0.3 percent.

Gold miners are mostly higher. Northern Star resources and Evolution Mining are gaining almost 2 percent each, while Resolute Mining and Newmont are adding almost 1 percent each. Gold Road Resources is edging up 0.4 percent.

Among the big four banks, Commonwealth Bank and National Australia Bank are edging down 0.1 to 0.3 percent each, while ANZ Banking is losing more than 1 percent. Westpac is edging up 0.3 percent.

In the currency market, the Aussie dollar is trading at $0.667 on Tuesday.

The Japanese stock market is modestly higher in post-holiday trading on Tuesday after opening well in the green, and briefly slipping in to the red, recouping the slight losses in the previous session, following the broadly positive cues from Wall Street overnight. The Nikkei 225 is moving above the 44,900 level, with gains in automakers and technology stocks partially offset by weakness in financial stocks.

The benchmark Nikkei 225 Index closed the morning session at 44,904.13 up 136.01 points or 0.30 percent, after touching a record all-time high of 45,055.38 earlier. Japanese shares ended slightly lower Friday ahead of the holiday on Monday.

Market heavyweight SoftBank Group is edging down 0.4 percent and Uniqlo operator Fast Retailing is losing almost 2 percent. Among automakers, Honda is adding more than 1 percent and Toyota is gaining almost 1 percent.

In the tech space, Screen Holdings is surging almost 5 percent, Advantest is edging up 0.3 percent and Tokyo Electron is adding almost 2 percent.

In the banking sector, Mizuho Financial, Sumitomo Mitsui Financial and Mitsubishi UFJ Financial are all losing almost 1 percent each.

The major exporters are mixed. Mitsubishi Electric and Panasonic are edging up 0.2 to 0.4 percent each, while Sony is losing 1.5 percent and Canon is edging down 0.5 percent.

Among the other major gainers, Sumco is jumping more than 8 percent, while Resonac Holdings and Disco are surging more than 5 percent each. GS Yuasa and Socionext are gaining more than 3 percent each, while IHI is adding almost 3 percent.

Conversely, Nintendo is declining almost 4 percent, Mercari is losing more than 3 percent and Ryohin Keikaku is down almost 3 percent.

In the currency market, the U.S. dollar is trading in the lower 147 yen-range on Tuesday.

Elsewhere in Asia, South Korea is up 1.1 percent, while Indonesia and Taiwan are up 0.2 and 0.9 percent, respectively. Singapore and China are down 0.1 percent each. New Zealand and Hong Kong are relatively flat. Malaysia is closed for Malaysia Day.

On Wall Street, stocks moved mostly higher during trading on Monday, adding to the strong gains posted last week. With the continued upward move, the Nasdaq and the S&P 500 reached new record closing highs.

The Nasdaq jumped 207.65 points or 0.9 percent to 22,348.75 and the S&P 500 climbed 30.99 points or 0.5 percent to 6,615.28. The narrower Dow posted a more modest gain, inching up 49.23 points or 0.1 percent to 45,883.45.

The major European markets also moved to the upside on the day. The French CAC 40 Index jumped by 0.9 percent and the German DAX Index rose by 0.2 percent, although the U.K.'s FTSE 100 Index bucked the uptrend and edged down by 0.1 percent.

Crude oil prices moved sharply higher on Monday amid brewing Middle East tensions and the heightening Russia-Ukraine war even as softening demand concerns surface. West Texas Intermediate crude for October delivery was up $0.58 or 0.93 percent at $63.27 per barrel.