Asian Markets Mostly Higher

(RTTNews) - Asian stock markets are trading mostly higher on Thursday, following the mostly positive cues from global markets overnight, as traders react positively to the US Fed pausing its interest rate hikes following ten consecutive rate hikes, while also forecasting additional increases before the end of the year. Asian Markets closed mixed on Wednesday.

The central bank's latest projections suggest the Fed plans to resume raising rates later this year, forecasting a rate of 5.6 percent by the end of 2023.

"The Fed today left rates unchanged, but signaled a clear intention to continue hiking rates in 2023 and keeping rates high in 2024," said Chris Low, Chief Economist at FHN Financial.

The Fed's next monetary policy meeting is scheduled for July 25-26, with CME Group's FedWatch Tool currently indicating a 61.5 percent chance of a 25 basis point increase.

Meanwhile, the European Central Bank is expected to raise interest rates by 25 basis points later in the day despite deepening fears of a recession in Europe.

The Australian stock market is modestly higher on Thursday, extending the gains in the previous three sessions, with the benchmark S&P/ASX 200 moving near the 7,200 level, following the mostly positive cues from global markets overnight, with gains in miners and financial stocks partially offset by weakness in energy stocks amid tumbling crude oil prices.

The benchmark S&P/ASX 200 Index is gaining 18.80 points or 0.26 percent to 7,180.50, after touching a high of 7,197.70 earlier. The broader All Ordinaries Index is up 19.80 points or 0.27 percent to 7,374.00. Australian stocks ended modestly higher on Wednesday.

Among major miners, BHP Group is gaining almost 1 percent, Rio Tinto is adding more than 1 percent and Fortescue Metals is advancing more than 2 percent, while Mineral Resources is losing more than 1 percent.

Oil stocks are mostly lower. Santos, Origin Energy and Woodside Energy are edging down 0.4 to 0.5 percent each, while Beach energy is losing more than 1 percent.

In the tech space, Afterpay owner Block is losing more than 2 percent, Appen is declining almost 5 percent and Zip is down almost 2 percent, while Xero is adding more than 1 percent and WiseTech Global is gaining almost 2 percent.

Among the big four banks, National Australia Bank and Westpac are edging up 0.1 to 0.5 percent each, while Commonwealth Bank and ANZ Banking are gaining almost 1 percent each.

Among gold miners, Gold Road Resources and Northern Star Resources are losing almost 1 percent each, while Newcrest Mining is edging down 0.4 percent. Resolute Mining is gaining more than 1 percent and Evolution Mining is edging up 0.2 percent. In the currency market, the Aussie dollar is trading at $0.679 on Thursday.

The Japanese stock market is modestly higher in choppy trading on Thursday, extending the gains in the previous four sessions, with the Nikkei 225 moving above the 33,600 level, following the mostly positive cues from global markets overnight, aided by gains in technology stocks. Traders also expect the Bank of Japan to maintain its ultra-loose policy when it meets on Friday.

The benchmark Nikkei 225 Index closed the morning session at 33,615.57, up 113.15 points or 0.34 percent, after touching a high of 33,659.75 earlier. Japanese stocks closed sharply higher on Wednesday.

Market heavyweight SoftBank Group is losing almost 1 percent and Uniqlo operator Fast Retailing is declining more than 1 percent. Among automakers, Toyota is edging up 0.3 percent, while Honda is losing 1.5 percent.

In the tech space, Screen Holdings is gaining more than 3 percent, Tokyo Electron is adding almost 2 percent and Advantest is advancing almost 4 percent.

In the banking sector, Mitsubishi UFJ Financial is edging up 0.1 percent, while Sumitomo Mitsui Financial is edging down 0.3 percent and Mizuho Financial is losing more than 1 percent.

Among the major exporters, Panasonic is losing almost 1 percent, while Canon and Sony are edging down 0.2 to 0.5 percent each. Mitsubishi Electric is edging up 0.3 percent.

Among the other major gainers, Nikon is gaining more than 4 percent, Renesas Electronics is adding almost 4 percent, Kubota is advancing more than 3 percent and Nintendo is up almost 3 percent.

Conversely, Daiichi Sankyo is losing more than 3 percent and Sumitomo Pharma is down almost 3 percent.

In economic news, Japan posted a seasonally adjusted merchandise trade deficit of 1,362.5 billion yen in May, the Ministry of Finance said on Thursday. That missed expectations for a shortfall of 1,331.9 billion following the 432.3 billion yen deficit in April.

Exports were up 0.6 percent on year to 7,292.6 billion yen, exceeding forecasts for a 0.8 percent decline following the 2.6 percent gain in the previous month. Imports dropped an annual 9.9 percent to 8,665.1 billion yen versus expectations for a decline of 10.3 percent after slipping 2.3 percent a month earlier.

Meanwhile, the Cabinet Office said on Thursday the value of core machine orders in Japan was up a seasonally adjusted 5.5 percent on month in April, coming in at 900.0 billion yen. That beat expectations for a gain of 3.0 percent following the 3.9 percent decline in March.

On a yearly basis, core machine orders slumped 5.9 percent - but that also exceeded expectations for a drop of 8.0 percent after sinking 3.5 percent in the previous month. For the second quarter of 2023, core machine orders are seen higher by 4.6 percent on quarter and lower by 1.6 percent on year.

In the currency market, the U.S. dollar is trading in the lower 141 yen-range on Thursday.

Elsewhere in Asia, New Zealand, China, Hong Kong, Singapore and Taiwan are higher by between 0.1 and 0.7 percent each, while South Korea, Indonesia and Malaysia are lower by between 0.3 and 0.5 percent each. On Wall Street, stock saw substantial volatility following the Federal Reserve's monetary policy announcement on Wednesday. The major averages showed wild swings back and forth across the unchanged line before eventually closing mixed.

The Nasdaq climbed 53.16 points or 0.4 percent to13,626.48 and the S&P 500 inched up 3.58 points or 0.1 percent to 4,372.59, once again reaching their best closing levels in over a year. Meanwhile, the narrower Dow slid 232.79 points or 0.7 percent to 33,979.33, pulling back off Tuesday's four-month closing high.

Meanwhile, the major European markets all moved to the upside on the day. While the U.K.'s FTSE 100 Index inched up by 0.1 percent, the French CAC 40 Index and the German DAX Index both rose by 0.5 percent.

Crude oil prices pared early gains and drifted lower Wednesday after data showed a notable increase in U.S. crude inventories last week, while a stronger greenback also weighed. West Texas Intermediate Crude oil futures for July sank $1.15 or 1.7 percent at $68.27 a barrel.