Asian Markets Trade Mostly Higher

(RTTNews) - Asian stock markets are trading mostly higher on Wednesday, despite the broadly negative cues from Wall Street overnight, as traders are cautious and seemed reluctant to make more significant moves ahead of the US Fed's monetary policy decision later in the day. Some traders are looking to pick stocks at a bargain following the recent slump in the markets. Asian markets closed mostly lower on Tuesday.

The Fed is widely expected to raise interest rates, with CME Group's FedWatch Tool currently indicating a 92.4 percent chance of a quarter-point rate hike. This is up from a 59.4 percent chance last week.

Middle East tensions continue to escalate after fresh Houthi attacks on Saudi Arabia and the postponement of Gulf-Iran talks. Saudi Arabian oil flows to its Red Sea coast has been disrupted following last week's drone attack on its east-west pipeline.

Saudi Arabia has also suspended Yanbu oil loadings and cancelled some cargo deliveries to European customers.

Australian shares are trading modestly higher on Wednesday, reversing some of the losses in the previous session, with the benchmark S&P/ASX 200 moving well above the 8,650 level, despite the broadly negative cues from Wall Street overnight, with gains in energy and financial stocks partially offset by weakness in technology stocks.

The benchmark S&P/ASX 200 Index is gaining 16.40 points or 0.19 percent to 8,688.90, after touching a high of 8,705.60 earlier. The broader All Ordinaries Index is up 16.60 points or 0.19 percent to 8,865.90. Australian stocks ended significantly lower on Tuesday.

Among major miners, BHP Group and Rio Tinto are edging up 0.1 to 0.3 percent each, while Mineral Resources is losing almost 1 percent, Fortescue is flat.

Oil stocks are mostly higher. Woodside Energy and Santos are advancing almost 3 percent each, while Beach energy is gaining almost 4 percent and Origin Energy is adding almost 2 percent.

In the tech space, Afterpay owner Block is losing almost 1 percent, Xero is down more than 1 percent, Appen is slipping more than 3 percent, WiseTech Global is declining almost 2 percent and Zip is sliding almost 2 percent.

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

Among gold miners, Evolution Mining is slipping almost 2 percent and Resolute Mining is losing almost 1 percent, while Genesis Minerals and Northern Star Resources are declining more than 2 percent each. Newmont is gaining almost 1 percent.

In the currency market, the Aussie dollar is trading at $0.713 on Wednesday.

The Japanese stock market is trading modestly lower on Wednesday, extending the losses in the previous three sessions, following the broadly negative cues from Wall Street overnight. The Nikkei 225 is falling below the 63,400 level, with weakness index heavyweights partially offset by gains in automakers and financial stocks.

The benchmark Nikkei 225 Index closed the morning session at 63,396.00, down 88.10 points or 0.14 percent, after hitting a low of 63,209.92 earlier. Japanese stocks ended slightly lower on Tuesday.

Market heavyweight SoftBank Group is tumbling more than 4 percent and Uniqlo operator Fast Retailing is edging down 0.1 percent. Among automakers, Honda is gaining more than 1 percent and Toyota is adding almost 1 percent.

In the tech space, Advantest is edging down 0.4 percent, while Tokyo Electron is gaining almost 1 percent and Screen Holdings is adding more than 1 percent.

In the banking sector, Sumitomo Mitsui Financial is gaining more than 1 percent, while Mizuho Financial and Mitsubishi UFJ Financial are adding almost 1 percent each.

Among the major exporters, Mitsubishi Electric is gaining more than 1 percent, Panasonic is advancing almost 4 percent and Canon is adding almost 1 percent, while Sony is edging down 0.3 percent.

Among other major losers, Otsuka Holdings is tumbling almost 5 percent, while Sumitomo Pharma and Mercari are declining more than 4 percent each. Kioxia Holdings is losing more than 3 percent and Ididen is down almost 3 percent.

Conversely, Idemitsu Kosan and ENEOS Holdings are surging more than 5 percent each, while Mitsubishi Chemical Group is advancing almost 4 percent. Tokyo Electric Power, Mitsui Chemicals, Kubota, Mitsui & Co., Inpex, Hitachi and Amada are gaining more than 3 percent each, while Taisei, Kajima, Shimizu and Sumitomo Chemical are adding almost 3 percent each.

In economic news, the total value of core machinery orders in Japan was down a seasonally adjusted 3.7 percent on month in July, the Cabinet Office said on Wednesday - coming in at 1.016 trillion yen. That missed expectations for a decline of 1.2 percent following the 9.7 percent increase in June.

On a yearly basis, orders climbed 11.2 percent - again shy of expectations for a gain of 15.3 percent and down from 16.9 percent in the previous month. For the third quarter of 2026, orders are forecast to rise 4.9 percent on quarter and 19.9 percent on year.

The total value of machinery orders received by 280 manufacturers operating in Japan decreased 5.5 percent on month but surged 36.8 percent on year to 4.195 trillion yen.

Meanwhile, Japan posted a merchandise trade deficit of 1.105 trillion yen in August, the Ministry of Finance said on Wednesday. That missed forecasts for a deficit of 1.052 trillion yen following the 634.5 billion yen shortfall in July.

Exports were up 19.3 percent on year to 10.048 trillion yen, exceeding expectations for an increase of 18.2 percent following the 23.2 percent gain in the previous month. Imports jumped an annual 28.0 percent to 11.153 trillion versus forecasts for a gain of 26.3 percent and up from 27.8 percent a month earlier.

In the currency market, the U.S. dollar is trading in the lower 155 yen-range on Wednesday.

Elsewhere in Asia, New Zealand, Hong Kong, Singapore, South Korea, Indonesia and Taiwan are higher by between 0.1 and 1.0 percent each, while China is bucking the trend and is down 0.1 percent. Malaysia is closed for Malaysia Day.

On Wall Street, stocks moved mostly lower during trading on Tuesday, adding to the losses posted during Monday's session. The major averages all moved to the downside on the day, with the S&P 500 dropping to its lowest closing level in over a month.

The major averages ended the day off their lows of the session but still firmly in negative territory. The Dow declined 328.09 points or 0.6 percent to 52,093.11, the Nasdaq slid 204.84 points or 0.8 percent to 25,981.57 and the S&P 500 fell 34.25 points or 0.5 percent to 7,585.73. The major European markets also moved to the downside on the day. While the German DAX Index dipped by 0.2 percent, French CAC 40 Index and the U.K.'s FTSE 100 Index fell by 0.3 percent and 0.4 percent, respectively.

Crude oil prices surged on Tuesday as supply concerns mount after Saudi Arabia shut its East-West pipeline. West Texas Intermediate crude for October delivery was up $4.37 or 4.31 percent at $105.76 per barrel.