Asian Markets Track Wall Street Lower

(RTTNews) - Asian stock markets are trading mostly lower on Tuesday, following the broadly negative cues from Wall Street overnight, as traders looked to cash in on the recent strong gains and remain cautious ahead of the release of key US economic data later in the week, including second quarter GDP and the US Fed's preferred readings on consumer price inflation. Asian markets closed mostly higher on Monday.

The Australian stock market is trading modestly lower on Tuesday, recouping the slight gains in the previous session, following the broadly negative cues from Wall Street overnight. The benchmark S&P/ASX 200 is falling below the 8,950 level, with weakness in iron ore miners and a mixed performance across most other sectors.

The benchmark S&P/ASX 200 Index is losing 25.70 points or 0.29 percent to 8,946.70, after touching a high of 8,984.90 earlier. The broader All Ordinaries Index is down 31.90 points or 0.35 percent to 9,213.10. Australian stocks closed slightly higher on Monday.

Among the major miners, BHP Group and Rio Tinto are edging down 0.2 to 0.5 percent each, while Mineral Resources is slipping more than 3 percent and Fortescue is declining almost 2 percent on downbeat results.

Oil stocks are mostly higher. Santos is gaining almost 1 percent and Beach energy is edging up 0.2 percent, while Woodside Energy is edging down 0.3 percent. Origin Energy is flat.

Among tech stocks, Afterpay owner Block, Zip, Xero and WiseTech Global are edging down 0.3 to 0.5 percent each, while Appen is gaining almost 1 percent.

Gold miners are mostly lower. Evolution Mining is losing more than 1 percent, Northern Star resources is edging down 0.1 percent and Resolute Mining is declining more than 5 percent, while Gold Road Resources is edging up 0.3 percent and Newmont is gaining almost 1 percent.

Among the big four banks, ANZ Banking and Westpac are edging down 0.2 to 0.5 percent each, while National Australia Bank and Commonwealth Bank edging up 0.1 to 0.5 percent each.

In economic news, the Reserve Bank of Australia will on Tuesday release the minutes from its August 12 monetary policy meeting. At the meeting, the RBA reduced its benchmark interest rate by a quarter-point to 3.60 percent as underlying inflation continued to soften and labor conditions eased slightly. The third cut this year took the rate to the lowest since March 2023. Previously, the bank had reduced the rate by 25 basis points each in May and February.

In the currency market, the Aussie dollar is trading at $0.648 on Tuesday.

The Japanese stock market is trading significantly lower on Tuesday, reversing the gains in the previous two sessions, following the broadly negative cues from Wall Street overnight, with the Nikkei 225 falling below the 42,400 level, with weakness across most sectors led by index heavyweights, exporters and financial stocks.

The benchmark Nikkei 225 Index closed the morning session at 42,354.53, down 453.29 points or 1.06 percent, after hitting a low of 42,137.62 earlier. Japanese shares ended modestly higher on Monday.

Market heavyweight SoftBank Group is losing almost 2 percent and Uniqlo operator Fast Retailing is also down almost 2 percent. Among automakers, Honda is losing almost 1 percent and Toyota is up almost 1 percent.

In the tech space, Screen Holdings is gaining almost 1 percent, while Advantest is losing more than 1 percent and Tokyo Electron is edging down 0.2 percent.

In the banking sector, Mitsubishi UFJ Financial is losing almost 1 percent, Mizuho Financial is edging down 0.2 percent and Sumitomo Mitsui Financial is declining more than 1 percent.

The major exporters are mostly loser. Panasonic and Mitsubishi Electric are losing almost 1 percent each, while Sony and Canon are declining more than 1 percent each.

Among the other major losers, Nissan Motor is plunging more than 6 percent and Tokyo Electric Power is losing more than 5 percent, while Recruit Holdings and Hino Motors are declining more than 3 percent each. Yokohama Rubber and Daiichi Sankyo are down almost 3 percent each.

Conversely, Rakuten is gaining almost 3 percent.

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

Elsewhere in Asia, China, Hong Kong, Singapore, South Korea, Malaysia, Taiwan and Indonesia are all lower by between 0.1 and 1.0 percent each. New Zealand is relatively flat.

On Wall Street, stocks moved mostly lower over the course of the trading day on Monday after ending last Friday's trading sharply higher. The major averages turned in a lackluster performance for much of the session before coming under pressure going into the close.

The major averages all finished the day in negative territory. The Dow slid 349.27 points or 0.8 percent to 45,282.47, the S&P 500 fell 27.59 points or 0.4 percent to 6,439.32 and the Nasdaq slipped 47.24 points or 0.2 percent to 21,449.29.

The major European markets all also moved to the downside on the day. The U.K. markets closed for a public holiday, while the French CAC 40 Index tumbled by 1.5 percent, the German DAX Index fell by 0.4 percent.

Crude oil prices jumped on Monday, on concerns that Western sanctions on Russian oil exports may continue longer than anticipated. West Texas Intermediate crude for October delivery was up $1.20 or 1.89 percent at $64.86 per barrel.