Asian Markets Trade Mostly Lower

(RTTNews) - Asian stock markets are trading mostly lower on Wednesday, despite the broadly positive cues from Wall Street overnight, amid persistent risks to Middle East energy flows after Iran increased the pace of attacks on tankers in the Strait of Hormuz in recent days as well as the conflict between Saudi Arabia and Iran-backed Houthi forces in Yemen. Asian markets closed mostly higher on Tuesday.

The Houthis claimed they have carried out attacks on several sites in Saudi Arabia, including King Khalid International Airport in Riyadh, although the Saudis have not confirmed the attacks

Traders looked ahead to the release of the US Federal Reserve's September monetary policy meeting minutes later in the day as well as speeches by Fed officials for additional clues on the central bank's next interest rate decision later this month. CME Group's FedWatch Tool is currently indicating an 80.6 percent chance the Fed will leave rates unchanged and just a 19.4 percent chance of another quarter point rate hike.

Australian shares are slightly higher in choppy trading on Wednesday after alternating across the unchanged line, extending the gains in the previous three sessions, with the benchmark S&P/ASX 200 moving well above 8,700 level, following the broadly positive cues from Wall Street overnight, with gains in gold miners and technology stocks partially offset by weakness in iron ore miners and financial stocks.

The benchmark S&P/ASX 200 Index is gaining 7.90 points or 0.09 percent to 8,743.60, after touching a high of 8,753.90 and a low of 8,703.30 earlier. The broader All Ordinaries Index is up 5.90 points or 0.07 percent to 8,909.40. Australian stocks ended notably higher on Tuesday.

Among major miners, BHP Group is declining more than 1 percent, Rio Tinto is losing almost 1 percent, Mineral Resources is edging down 0.2 percent and Fortescue is slipping almost 2 percent.

Oil stocks are mixed. Woodside Energy and Santos are edging up 0.1 to 0.2 percent each, while Beach energy and Origin Energy are losing almost 1 percent each.

In the tech space, Afterpay owner Block and Zip are edging up 0.2 to 0.5 percent each, while Xero is up more than 1 percent and WiseTech Global is gaining almost 1 percent. Appen is slipping more than 1 percent.

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

Among gold miners, Evolution Mining and Resolute Mining are gaining more than 1 percent each, while Genesis Minerals and Newmont are adding almost 1 percent each. Northern Star Resources is advancing almost 3 percent.

In other news, shares in SKS Technologies are tumbling more than 12 percent following a major on-market share sale by the company's executive leadership and founding family.

In economic news, private sector house approvals in Australia rose 3.7 percent onmonth to 10,885 units in August 2026, in line with flash data. The latest result was the strongest monthly rise since July 2025, reversing from a 1.9 percent decline in the previous month. On an annual basis, private house approvals jumped 18.4 percent, picking up from an 8.2 percent increase in July.

Australia's seasonally adjusted dwelling approvals fell 6.1 percent on month to a seven-month low of 16,953 units in August 2026, matching the flash estimate and deepening from a 1.9 percent decline in the previous month. It was the fifth time of contraction so far this year. On a yearly basis, building approvals rose 10.3 percent, easing slightly from a 10.9 percent gain in July.

The Ai Group Industry Index for Australia's construction sector fell sharply to -34.5 in September 2026 from a downwardly revised 4.7 in the previous month, indicating a significant deterioration in construction activity.

Australia's Ai Group Industry Index for manufacturing remained in contraction in September, albeit at a softer pace, rising to -8.7 from August's revised -14.9, marking the highest level since May 2023.

In the currency market, the Aussie dollar is trading at $0.697 on Wednesday.

The Japanese stock market is trading significantly lower on Wednesday, reversing some of the gains in the previous two sessions, despite the broadly positive cues from Wall Street overnight. The Nikkei 225 is falling well below the 70,100 level, with weakness in exporters and technology stocks partially offset by gains in index heavyweights.

The benchmark Nikkei 225 Index closed the morning session at 70,074.13, down 609.85 points or 0.86 percent, after hitting a low of 70,017.19 earlier. Japanese stocks ended significantly higher on Tuesday.

Market heavyweight SoftBank Group is gaining almost 1 percent and Uniqlo operator Fast Retailing is adding more than 1 percent. Among automakers, Honda is losing almost 1 percent, while Toyota is edging up 0.2 percent.

In the tech space, Advantest is losing almost 1 percent, Tokyo Electron is declining almost 2 percent and Screen Holdings is slipping more than 2 percent.

In the banking sector, Sumitomo Mitsui Financial and Mitsubishi UFJ Financial are edging up 0.2 to 0.5 percent each, while Mizuho Financial is edging down 0.3 percent.

Among the major exporters, Mitsubishi Electric and Panasonic are losing almost 1 percent each, while Canon and Sony are edging down 0.1 to 0.3 percent each.

Among other major losers, Disco is tumbling more than 6 percent, Kokusai Electric is slipping more than 4 percent, Kioxia Holdings is declining almost 4 percent and Murata Manufacturing is losing more than 3 percent, while Rakuten and TDK are down almost 3 percent each.

Conversely, Suzuki Motor, Taisei and Taiyo Yuden are advancing more than 3 percent each.

In economic news, the Reuters Tankan index for Japanese manufacturers increased for the third consecutive month to +22 in October 2026 from +21 in the previous month, marking the highest reading since December 2021. Meanwhile, non-manufacturers' sentiment fell to +23 from +29, marking the lowest reading since November 2024. Looking three months ahead, manufacturers expect sentiment to improve to +23, while non-manufacturers expect sentiment to weaken to +21.

Average cash earnings in Japan increased by 3.8 percent on year in August 2026, slightly exceeding market expectations for a 3.7 percent gain and staying above 3 percent for a seventh month, the longest such run since 1992. While it slowed from a revised 4.3 percent rise in July, it also marked the 56th consecutive month of nominal wage growth.

Japan's official reserve assets fell by US$29.1 billion, or 2.4 percent, to US$1.178 trillion at the end of September 2026 from US$1.208 trillion a month earlier, extending the decline following August's record drop.

In the currency market, the U.S. dollar is trading in the lower 158 yen-range on Wednesday.

Elsewhere in Asia, New Zealand, Hong Kong, Singapore, South Korea, Malaysia and Taiwan are lower by between 0.1 and 1.0 percent each. Indonesia is relatively flat. China remains closed for the National Day holiday.

On Wall Street, stocks gave back some ground over the course of the trading day on Tuesday but continued to turn in a strong performance after showing a notable move the upside early in the session. The major averages extended a recent upward trend, with the Nasdaq and S&P 500 reaching new record closing highs.

The major averages ended the day firmly in positive territory but well off their highs of the session. The S&P 500 climbed 44.98 points or 0.6 percent to 7,818.93, the Nasdaq rose 122.48 points or 0.5 percent to 27,599.79 and the Dow increased 253.38 points or 0.5 percent to 51,521.28. The major European markets also moved to the upside on the day. While the German DAX Index advanced by 0.8 percent, the U.K.'s FTSE 100 Index and the French CAC 40 Index both rose by 0.4 percent.

Crude oil prices came off of early lows but still ticked lower on Tuesday following reports that Middle East crude exports are recovering back up toward pre-war levels. West Texas Intermediate crude for November delivery dipped $0.18 or 0.2 percent at $89.25 a barrel.