Asian Markets Trade Mostly Higher

(RTTNews) - Asian markets are trading mostly higher on Thursday, despite the broadly negative cues from Wall Street overnight, amid optimism about the outlook for interest rates as markets are pricing in another rate cut by the U.S. Fed at its upcoming October 28-29 monetary policy meeting, despite the absence of vital data to gauge the trajectory of the economy. Asian markets closed mostly lower on Wednesday.

According to CME Group's FedWatch Tool, investors are betting on a 96.7% chance of a 25-basis-point interest rate cut and a 3.3% chance of a 50-basis-point rate cut at the Fed's October 28-29 meeting.

Meanwhile, there is renewed uncertainty about trade relations between the U.S. and China following the latest remarks from US President Donald Trump. Reports suggest Trump threatened to bar "critical software" exports to China in retaliation for Beijing's latest round of rare earth export restrictions.

The Australian market is trading slightly higher on Thursday, reversing some of the losses in the previous two sessions, despite the broadly negative cues from Wall Street overnight. The benchmark S&P/ASX 200 is staying well above the 9,000 mark, with gains in gold miners and energy stocks partially offset by weakness in iron ore miners, financial and technology stocks.

The benchmark S&P/ASX 200 Index is gaining 2.60 points or 0.03 percent to 9,032.60, after hitting a low of 8,986.20 earlier. The broader All Ordinaries Index is up 5.90 points or 0.06 percent to 9,327.00. Australian stocks ended notably lower on Wednesday.

Among major miners, Rio Tinto is down almost 1 percent, BHP Group is losing more than 2 percent and Mineral Resources is edging down 0.3 percent, while Fortescue is gaining more than 1 percent.

Oil stocks are mostly higher. Beach energy is gaining more than 3 percent, Origin Energy is up almost 1 percent, Santos is adding more than 2 percent and Woodside Energy is advancing almost 4 percent.

In the tech space, Afterpay owner Block and WiseTech Global are losing more than 2 percent each, while Zip is slipping almost 4 percent and Xero is declining almost 2 percent. Appen is flat.

Among the big four banks, National Australia Bank and Commonwealth Bank are losing almost 1 percent each, while Westpac is edging down 0.3 percent and ANZ Banking is edging up 0.2 percent.

Among gold miners, Evolution Mining is rising almost 2 percent and Northern Star Resources is advancing almost 3 percent, while Newmont, Genesis Minerals and Resolute Mining are adding more than 1 percent each.

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

The Japanese market is sharply lower on Thursday, extending the losses in the previous session, following the broadly negative cues from Wall Street overnight. The Nikkei 225 is falling well below the 48,700 level, with weakness across most sectors led by index heavyweights and technology stocks.

The benchmark Nikkei 225 Index closed the morning session at 48,664.74, down 643.05 points or 1.30 percent, after hitting a low of 48,399.05 earlier. Japanese shares ended slightly lower on Wednesday.

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

In the tech space, Advantest is losing almost 3 percent, Screen Holdings is edging down 0.3 percent and Tokyo Electron is tumbling almost 4 percent.

In the banking sector, Mizuho Financial is edging down 0.5 percent, Mitsubishi UFJ Financial is declining almost 1 percent and Sumitomo Mitsui Financial is down more than 1 percent.

Among the major exporters, Mitsubishi Electric is edging up 0.4 percent, while Panasonic is declining 1.5 percent, Sony is edging down 0.4 percent and Canon is slipping more than 1 percent.

Among other major losers, Disco is losing almost 5 percent, while Omron, Sumco, Lasertec and Daikin Industries are down almost 4 percent each. Renesas Electronics is slipping more than 3 percent, while Yaskawa Electric, Nidec and Taiyo Yuden are declining almost 3 percent each.

Conversely, Sumitomo Heavy Industries is jumping almost 7 percent and Kawasaki Heavy Industries is adding more than 3 percent.

In the currency market, the U.S. dollar is trading in the lower 152 yen-range on Thursday.

Elsewhere in Asia, New Zealand, Hong Kong, Singapore, Malaysia, South Korea and Indonesia are higher by between 0.1 and 0.7 percent each. China and Taiwan are down 0.6 and 0.7 percent, respectively.

On Wall Street, stocks moved mostly lower during trading on Wednesday following the lackluster performance seen during Tuesday's session. The major averages all moved to the downside on the day, with the Dow pulling back off yesterday's record closing high.

The major averages climbed well off their worst levels in late-day trading but remained firmly negative. The Nasdaq slumped 213.67 points or 0.9 percent to 22,740.40, the Dow slid 334.33 points or 0.7 percent to 46,590.41 and the S&P 500 fell 35.95 points or 0.5 percent to 6,699.40.

Meanwhile, the major European markets also ended the day mixed. While the U.K.'s FTSE 100 Index advanced 0.9 percent, the French CAC 40 Index fell 0.6 percent and the German DAX Index declined by 0.7 percent.

Crude oil prices surged on Wednesday on news that the proposed U.S.-Russia summit to discuss the Russia-Ukraine war has been shelved. West Texas Intermediate crude for December delivery was up $1.28 or 2.24 percent at $58.52 per barrel.