Asian stock markets are predominantly on the rise this Wednesday, guided by the broadly positive signals from Wall Street and buoyed by optimism surrounding the U.S. presidential election. Early results indicate a strong showing for Republican candidate Donald Trump against Democratic candidate Kamala Harris. Despite this optimism, investors are maintaining a cautious approach ahead of the anticipated interest rate announcement from the U.S. Federal Reserve set for tomorrow. Notably, Asian markets closed mostly higher the previous day.
There is widespread expectation that the Federal Reserve will reduce interest rates by another 25 basis points, yet the market will keenly dissect the accompanying statement for hints about future monetary policy moves.
Australian stocks are notably stronger on Wednesday, recovering from prior declines. The benchmark S&P/ASX 200 has surpassed the 8,200 threshold, propelled by favorable trends from Wall Street and broad sector gains prominently in tech and financial stocks. The S&P/ASX 200 Index is up by 84.70 points or 1.04 percent, reaching 8,216.50, after peaking earlier at 8,219.10. Meanwhile, the broader All Ordinaries Index has risen by 86.10 points or 1.03 percent to 8,473.90. On Tuesday, Australian stocks finished with significant losses.
In the mining sector, BHP Group is up by nearly 1 percent, Rio Tinto has increased by over 1 percent, and Fortescue Metals has edged up by 0.5 percent. In contrast, Mineral Resources is slightly down by 0.5 percent.
Oil stocks are largely advancing, with Woodside Energy modestly higher by 0.1 percent and Origin Energy up over 1 percent, while Santos dips slightly by 0.1 percent, and Beach Energy remains unchanged. In technology, Zip has surged almost 7 percent, Appen advanced over 6 percent, WiseTech Global climbed more than 1 percent, and Xero rose over 4 percent. Meanwhile, Block, the owner of Afterpay, edged down by 0.2 percent.
Regarding banking, the Commonwealth Bank and Westpac both rose by nearly 1 percent, National Australia Bank saw gains of over 1 percent, and ANZ Banking edged up by 0.2 percent.
Gold mining stocks are also performing well, with Evolution Mining and Newmont each gaining over 1 percent, while Gold Road Resources and Northern Star Resources saw increases of 0.3 to 0.4 percent. Resolute Mining added almost 1 percent.
For currency, the Australian dollar stands at $0.656.
Turning to Japan, the stock market is significantly up on Wednesday, adding to gains seen previously, spurred by favorable cues from Wall Street. The Nikkei 225 has surged over 2 percent to cross the 39,300 mark, with financial and technology stocks leading the ascent.
The Nikkei 225 Index concluded the morning session at 39,341.44, up by 866.54 points or 2.25 percent, having reached a similar high earlier. Japanese stocks posted substantial gains on Tuesday.
SoftBank Group rose almost 2 percent and Fast Retailing, the operator of Uniqlo, edged up by 0.5 percent. Among automakers, Honda appreciated by nearly 1 percent while Toyota dipped by 0.4 percent.
In technology, Advantest advanced over 5 percent, and both Tokyo Electron and Screen Holdings gained more than 1 percent each.
Banking sector highlights include Sumitomo Mitsui Financial and Mizuho Financial each increasing by nearly 4 percent, while Mitsubishi UFJ Financial grew by over 3 percent.
Notable exporters like Sony saw a rise of over 1 percent, Canon slightly up by 0.2 percent, and Mitsubishi Electric surged almost 2 percent, whereas Panasonic decreased by 0.3 percent.
Among other significant gainers, DeNA, IHI, and Resona Holdings each climbed over 5 percent; in addition, Kawasaki Heavy Industries escalated by nearly 5 percent. Companies like Mitsubishi Heavy Industries and TDK also saw gains.
Conversely, Mercari plummeted over 14 percent, and Konica Minolta declined by more than 3 percent.
Economic reports indicate Japan’s services sector contracted in October, as per the Jibun Bank survey showing a services PMI at 49.7, down from September's 53.1, below the 50 mark that demarcates expansion from contraction.
Additionally, the Bank of Japan's Monetary Policy Board noted a modest economic recovery and expects continued improvement. They maintained the key interest rate at 0.25 percent during their September 19-20 meeting, as anticipated. The BoJ exited its negative interest rate stance back in March.
In currency trading, the U.S. dollar hovers within the upper 153 yen range.Across Asia, Taiwan's market saw an increase of 1.0%, while markets in New Zealand, China, South Korea, and Malaysia experienced modest gains ranging from 0.1% to 0.5%. Conversely, Hong Kong's market fell by 1.9% and Indonesia's slipped by 0.2%. Singapore's market remained largely unchanged.
In the U.S., Wall Street experienced a mixed session on Monday with stocks lacking clear direction, eventually closing modestly lower. However, Tuesday saw a robust resurgence, led by the technology sector, particularly the Nasdaq.
By the end of the trading day, all major indices had risen significantly, although they closed below their session highs. The Nasdaq made a notable gain of 259.19 points, marking a 1.4% increase, to close at 18,439.17. The S&P 500 advanced by 70.07 points, or 1.2%, reaching 5,782.76, while the Dow rose 427.28 points, or 1.0%, to end at 42,221.88.
In Europe, the major markets generally followed an upward trend. Germany's DAX Index increased by 0.6%, and France's CAC 40 Index by 0.5%. However, the UK's FTSE 100 Index slightly deviated from this trend, slipping by 0.1%.
Crude oil prices continued their upward trajectory on Tuesday, fueled by trader optimism regarding OPEC's decision to postpone production hikes and further supported by a weaker dollar. Specifically, futures for West Texas Intermediate Crude for December delivery climbed by $0.52, or 0.73%, closing at $71.99 a barrel.