FX.co ★ Asian Markets Trade Mixed

Asian stock markets experienced mixed outcomes on Monday, influenced by Friday's generally negative performances on Wall Street. The rise in bond yields and speculations regarding the U.S. Federal Reserve’s potential adjustments in interest rates contributed to the market's uncertain atmosphere. Additionally, the ongoing Russia-Ukraine conflict continues to weigh on investor sentiment. On Friday, Asian markets had also displayed a mix of results.

The Australian stock market opened considerably lower on Monday, halting its three-day gain streak by reflecting Wall Street's negative signals. The S&P/ASX 200 index dropped below the 8,200 mark, driven by declines in financial and technology sectors. Specifically, the S&P/ASX 200 Index fell by 72.60 points, or 0.88%, to 8,189.20, after reaching an earlier low of 8,184.20. Meanwhile, the broader All Ordinaries Index decreased by 71.50 points, or 0.84%, to 8,448.60. Australian stocks had notably risen by the close on Friday.

In the mining sector, Rio Tinto saw a near 1% increase, whereas Mineral Resources dipped by 0.4%. BHP Group and Fortescue Metals remained stable. Oil stocks predominantly rose, with Woodside Energy climbing almost 1% and Origin Energy advancing by 0.3%, while Beach Energy and Santos each gained over 1%.

Tech stocks faced challenges, as Afterpay owner Block and Zip both dropped nearly 3%, and Xero declined by almost 2%. In contrast, WiseTech Global edged up by 0.3%, and Appen increased nearly 3%.

Gold mining firms mostly declined, with Evolution Mining, Gold Road Resources, Northern Star Resources, and Newmont each falling by 0.1 to 0.5%, whereas Resolute Mining slightly increased by 0.5%.

Among Australia’s leading banks, National Australia Bank, ANZ Banking, and Westpac all lost close to 1%, while the Commonwealth Bank dropped by more than 1%.

In the currency market, the Australian dollar stood at $0.623 on Monday.

Similarly, the Japanese stock market also saw a significant fall on Monday, ending a three-day gain streak. The Nikkei 225 index fell below the 40,000 threshold, mirroring Wall Street's negative trends, with declines observed in most sectors, led chiefly by major index contributors and tech stocks.

The Nikkei 225 Index concluded the morning session at 39,979.68, decreasing by 301.48 points, or 0.75%, after reaching an earlier low of 39,935.04. Japanese equities had ended sharply higher the previous Friday.

Key players such as SoftBank Group fell by almost 1%, and Fast Retailing, the operator of Uniqlo, decreased by 1.5%. In the automotive industry, Honda slipped by 0.3%, while Toyota lost nearly 1%.

In the technology sector, there were losses with Tokyo Electron down over 1%, Advantest dropping nearly 4%, and Screen Holdings decreasing by almost 1%.

In banking, Sumitomo Mitsui Financial slightly increased by 0.2%, and Mitsubishi UFJ Financial gained nearly 1%, whereas Mizuho Financial dipped by 0.3%.

Leading exporters such as Canon and Mitsubishi Electric faced declines of 0.3 to 0.4%, and Sony fell over 1%. However, Panasonic slightly edged up by 0.3%.

Among other major decliners, Nissan Motor fell over 6%, Socionext decreased by more than 4%, and Japan Steel Works dropped by around 4%, while Mitsubishi Motors and Fujikura fell by over 3% each. Kawasaki Heavy Industries slid nearly 3%.

Conversely, Kawasaki Kisen Kaisha gained nearly 3%.

Economic data indicated that Japan's manufacturing sector continued to contract in December, albeit at a slower rate, based on Jibun Bank's latest survey, which recorded a manufacturing PMI of 49.6, up from 49.0 in November. However, it remains below the 50-mark that distinguishes growth from contraction. New data revealed a mild decrease in output at year's end with a deceleration from the previous month.

Currency-wise, the U.S. dollar traded in the higher range of 157 yen on Monday.

Elsewhere across Asia, markets in China, Singapore, South Korea, and Malaysia rose by between 0.1% and 0.6%, while markets in New Zealand and Hong Kong fell by 0.3%. Markets in Taiwan and Indonesia remained relatively stable.

In the United States, Wall Street saw a notable downturn on Friday, with all major averages closing sharply lower. The technology-focused Nasdaq suffered the steepest decline amid rising yields on the 10-Year Treasury Note reaching an 8-month high.

The Dow Jones Industrial Average dropped by 333.59 points, or 0.77%, to 42,992.21, recovering from a low of 42,761.56. The S&P 500 settled at 5,970.84, losing 66.75 points or 1.11%, from an intra-day low of 5,932.95. Meanwhile, the Nasdaq decreased by 298.33 points or 1.49% to 19,722.03, having recovered from a low of 19,533.40.In Europe, the key stock markets experienced gains today. Germany's DAX rose by 0.68%, France's CAC 40 increased by 1%, and the U.K.'s FTSE 100 saw a modest rise of 0.16%.

On the commodities front, crude oil prices ascended on Friday due to a significant decline in U.S. crude inventories last week. Additionally, the persistent tensions between Russia and Ukraine contributed to the price increase. West Texas Intermediate Crude oil futures for February closed at $70.60 per barrel, marking a rise of approximately 1.4%.