Asian Markets Track Global Markets Higher

(RTTNews) - Asian stock markets are trading mostly higher on Monday, following the broadly positive cues from global markets on Friday, as traders react positively to an apparent resolution to the U.S. debt ceiling crisis forged over the weekend to avoid a potentially disastrous default by the U.S. government. Asian markets closed mostly higher on Friday.

President Joe Biden and House Speaker Kevin McCarthy, R-Calif., reached an agreement in principle during a phone call Saturday evening to raise the debt ceiling for two years and keep non-defense spending roughly flat for fiscal 2024.

The Australian stock market is significantly higher on Monday, extending the gains in the previous session, with the benchmark S&P/ASX 200 moving above the 7,200 level, following the broadly positive cues from global markets on Friday, with gains across all sectors as traders react to the news of an "agreement in principle" reached on the US debt ceiling over the weekend.

The benchmark S&P/ASX 200 Index is gaining 80.00 points or 1.12 percent to 7,234.80, after touching a high of 7,254.80 earlier. The broader All Ordinaries Index is up 79.70 points or 1.09 percent to 7,414.20. Australian stocks closed modestly higher on Friday.

Among the major miners, BHP Group, Mineral Resources and Fortescue Metals are gaining more than 2 percent each, while Rio Tinto is adding almost 2 percent.

Oil stocks are mostly higher. Santos and Woodside Energy are gaining more than 1 percent each, while Beach energy is adding almost 2 percent and Origin Energy is edging up 0.3 percent.

Among tech stocks, Zip is gaining more than 2 percent, Appen is skyrocketing more than 18 percent and Afterpay owner Block is adding almost 2 percent, while Xero and WiseTech Global are up almost 1 percent each.

Gold miners are mostly higher. Gold Road Resources is edging up 0.1 percent, Resolute Mining is gaining more than 1 percent and Northern Star Resources is edging up 0.5 percent, while Evolution Mining is edging down 0.4 percent. Newcrest Mining is flat.

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

In other news, shares in Humm are soaring more than 10 percent after the buy now, pay later firm said it is back in full business. The corporate regulator had ordered Humm of Friday to stop providing its products to new customers. Shares in Leo Lithium are jumping almost 14 percent after signing a deal with China's Ganfeng Lithium to raise $106 million in capital and cooperate on a project in Mali.

In the currency market, the Aussie dollar is trading at $0.654 on Monday.

The Japanese stock market is sharply higher on Monday, extending the gains in the previous two sessions, with the Nikkei 225 moving above the 31,300 level to fresh 33-year highs, following the broadly positive cues from global markets on Friday, with gains across all sectors as traders react to the news of an "agreement in principle" reached on the US debt ceiling over the weekend.

The benchmark Nikkei 225 Index closed the morning session at 31,325.84, up 409.53 or 1.32 percent, after touching a high of 30,560.43 earlier. Japanese shares ended notably higher on Friday.

Market heavyweight SoftBank Group is gaining more than 3 percent and Uniqlo operator Fast Retailing is adding almost 1 percent. Among automakers, Honda is gaining more than 2 percent, while Toyota is flat.

In the tech space, Screen Holdings is gaining almost 2 percent, Advantest is surging more than 5 percent and Tokyo Electron is adding more than 2 percent. In the banking sector, Sumitomo Mitsui Financial is adding more than 2 percent, while Mizuho Financial and Mitsubishi UFJ Financial are gaining almost 2 percent each.

The major exporters are mostly higher. Canon is gaining almost 2 percent, Mitsubishi Electric is adding more than 2 percent and Sony is up almost 1 percent. Panasonic is flat.

Among the other major gainers, Sumitomo, Mitsui & Co., Marubeni, Nikon, Renesas Electronics and Mitsubishi are gaining more than 4 percent each, while Itochu, Shin-Etsu Chemical, Sojitz and Toyota Tsusho are adding almost 4 percent each. Nippon Yusen K.K., Kikkoman, Citizen Watch and TDK are advancing more than 3 percent each.

Conversely, there are no major losers.

In the currency market, the U.S. dollar is trading in the mid-140 yen-range on Monday.

Elsewhere in Asia, New Zealand, China, Singapore, Malaysia and Taiwan are higher by between 0.1 and 0.9 percent each. Indonesia is bucking the trend and is down 0.6 percent. Hong Kong is relatively flat. South Korea is closed for Vesak Day holiday.

On Wall Street, stocks moved sharply higher over the course of the trading day on Friday, extending the rebound seen during Thursday's session. With the continued upward move, the Nasdaq and the S&P 500 reached their best closing levels in nine months.

The major averages moved roughly sideways going into the close, holding on to strong gains. The Nasdaq spiked 277.59 points or 2.2 percent to 12,975.69, the S&P 500 surged 54.17 points or 1.3 percent to 4,205.45 and the Dow jumped 328.69 points or 1.0 percent to 33,093.34.

The major European markets also moved to the upside on the day. While the U.K.'s FTSE 100 Index advanced by 0.7 percent, the German DAX Index and the French CAC 40 Index both jumped by 1.2 percent.

Crude oil prices climbed higher on Friday after Russia played down the prospect of additional output cuts by OPEC. West Texas Intermediate crude oil futures for July ended higher by $0.84 or 1.2 percent at $72.67 a barrel. WTI crude futures gained about 1.6 percent last week.