Asian stock markets experienced mixed trading on Friday, reflecting cautious investor sentiment prior to the much-anticipated release of the U.S. monthly jobs report and the forthcoming U.S. presidential election. The apprehension about potential interest rate cuts contributed to a subdued market environment, with most Asian indices closing lower on Thursday.
In Australia, the stock market saw a notable downturn, extending losses from the previous sessions in response to negative global market signals. The S&P/ASX 200 index fell below the 8,100-point mark, with declines observed across most sectors, particularly in mining, finance, and technology stocks.
The S&P/ASX 200 Index decreased by 75.60 points, or 0.93%, to 8,084.40, having dipped to a low of 8,063.20 earlier. The All Ordinaries Index also fell, down 74.40 points or 0.88% to 8,347.70. Australian markets had ended slightly lower the previous day.
Among the major mining companies, BHP Group and Fortescue Metals both lost nearly 1%, Rio Tinto edged down by 0.1%, and Mineral Resources declined by almost 2%.
Oil stocks were mostly weak. Woodside Energy rose by nearly 1%, while Origin Energy was down by 0.2%. Santos and Beach Energy remained steady.
In the technology sector, Afterpay's parent company, Block, fell by more than 1%, Zip dropped over 2%, and WiseTech Global Energy slid by 0.2%, while Xero and Appen each lost around 2%.
Among the big four banks, Commonwealth Bank, ANZ Banking, and Westpac each fell by over 1%, while National Australia Bank declined by nearly 2%. Gold mining stocks were generally lower with Evolution Mining down nearly 3%, Northern Star Resources down almost 2%, Newmont falling by 2.5%, Resolute Mining declining by more than 3%, and Gold Road Resources slipping over 1%.
On the economic front, it was reported that Australia's manufacturing sector continued to contract in October, though at a reduced pace. The latest Judo Bank survey yielded a manufacturing PMI score of 47.3, up from 46.7 in September, but still below the critical 50-mark separating expansion from contraction.
Additionally, the Australian Bureau of Statistics reported a 0.9% quarter-on-quarter rise in producer prices for the third quarter of 2024, exceeding expectations of a 0.7% increase. Annually, producer prices rose by 3.9%, aligning with predictions but down from the 4.8% growth seen in the previous quarter.
In currency developments, the Australian dollar traded at $0.657 on Friday.
In Japan, the stock market sharply declined, continuing its losses from the day before in response to global market trends. The Nikkei 225 index dropped by over 2% to a level just above 38,200, with weakness notable across most sectors, particularly among index heavyweights and technology stocks. This followed the Bank of Japan's decision to maintain steady rates amidst high uncertainty.
The Nikkei 225 concluded the morning session at 38,196.53, a fall of 884.72 points or 2.26%, after reaching a low of 38,180.35 earlier. Japanese stocks had finished significantly lower on Thursday.
Key losses included market heavyweight SoftBank Group, which fell by over 5%, and Uniqlo operator Fast Retailing, which declined nearly 2%. In the automobile sector, Honda decreased by 1.5%, with Toyota down almost 2%.
Within technology, Advantest lost nearly 3%, Tokyo Electron fell by more than 3%, while Screen Holdings gained almost 1%.
In the banking sector, Mitsubishi UFJ Financial and Mizuho Financial slightly increased, rising by between 0.1% and 0.4%, while Sumitomo Mitsui Financial decreased by 0.3%.
Major exporters saw mixed results: Canon and Sony lost more than 1% and nearly 1%, respectively, whereas Panasonic surged by more than 10% and Mitsubishi Electric rose by almost 15%.
Significant declines were noted in Lasertec, which plummeted nearly 15%, Socionext fell over 11%, Fujitsu decreased by more than 9%, Renesas Electronics dropped almost 7%, and Shiseido declined by more than 6%. Shares in Fujikura and Sumitomo Heavy Industries fell by over 5% each, Nikon decreased nearly 5%, and Nippon Electric Glass, TDK, Hitachi, Nitto Denko, NTN, and Furukawa Electric each fell by more than 4%.
Conversely, Fuji Electric and Keisei Electric Railway each gained over 5%, while JTEKT increased by more than 4%. Oriental Land and Resona Holdings advanced nearly 3% each.In recent economic developments, Japan's manufacturing sector witnessed an accelerated contraction in October, as indicated by Jibun Bank's latest survey released on Friday. The Manufacturing Purchasing Managers' Index (PMI) fell to 49.2, down from 49.7 in September, further positioning below the neutral 50 threshold that demarcates expansion from contraction.
In the currency exchange market, the U.S. dollar is hovering in the lower range of 152 yen as of Friday.
Across Asia, stock performance varied with New Zealand, Malaysia, Singapore, Taiwan, and Indonesia each experiencing declines ranging from 0.3 to 0.9 percent. Conversely, markets in China, Hong Kong, and South Korea saw modest gains, each rising between 0.1 and 0.6 percent.
Meanwhile, on Wall Street, stocks sustained significant losses throughout Thursday's trading session, exacerbated by an early sharp downturn. The technology-heavy Nasdaq notably experienced a substantial drop due to a sell-off in tech stocks.
Major benchmarks dipped further by the session's end, closing near their nadir for the day. The Nasdaq plummeted 512.78 points, marking a 2.8 percent decrease to finish at 18,095.15. The S&P 500 fell by 108.22 points or 1.9 percent to 5,705.45, while the Dow decreased by 378.08 points, or 0.9 percent, to 41,763.46.
European markets mirrored this downward trend, with the French CAC 40 Index falling 1.1 percent, the German DAX Index declining by 0.9 percent, and the U.K.'s FTSE 100 Index dropping by 0.6 percent.
In contrast, crude oil prices saw an uptick on Thursday, driven by anticipated increased demand in the U.S. and a probable postponement of OPEC's planned output hike slated for December. West Texas Intermediate crude oil futures for December rose by $0.65, or 0.95 percent, settling at $69.26 per barrel.