FX.co ★ Asian Markets Trade Mostly Higher

Asian stock markets are predominantly on the rise this Monday, buoyed by mixed signals from Wall Street last Friday. Recent economic data has sparked optimism about potential interest rate cuts in the forthcoming months. However, comments from U.S. Federal Reserve officials have somewhat dampened this enthusiasm. The announcement of new stimulus measures in China has also led to a spike in commodity prices. Notably, Asian markets had shown mixed results last Friday.

Three leading Fed officials have advised caution regarding rate cuts until there's clear evidence that inflation is trending back to the 2 percent target. Despite this, the CME Group's FedWatch Tool still suggests an 83.6 percent probability that interest rates will be a quarter point lower by September.

In Australia, the stock market is experiencing significant gains this Monday, effectively reversing losses from the previous session. The benchmark S&P/ASX 200 has climbed near the 7,900.00 level. Gains are observed across most sectors, especially mining and energy, thanks to the surge in commodity prices.

The S&P/ASX 200 Index has risen by 50.50 points or 0.65 percent to reach 7,864.90, having peaked earlier at 7,870.50. The broader All Ordinaries Index is also up by 51.80 points or 0.64 percent at 8,134.10. Australian stocks had closed significantly lower last Friday.

In the mining sector, BHP Group and Rio Tinto have each gained nearly 2 percent, while Mineral Resources is up almost 1 percent and Fortescue Metals is adding more than 1 percent. Oil stocks are mostly higher, with Origin Energy up almost 1 percent, Woodside Energy gaining over 1 percent, and Santos advancing almost 2 percent. Beach Energy, however, is down by almost 1 percent.

Among tech stocks, Afterpay's parent company Block and Xero have added nearly 1 percent each, while Zip is edging up by 0.4 percent. Appen has declined almost 4 percent and WiseTech Global is down almost 1 percent.

Gold miners are mostly on the rise. Gold Road Resources has surged over 5 percent, Newmont is up more than 2 percent, Northern Star Resources has advanced nearly 3 percent, Resolute Mining has added almost 4 percent, and Evolution Mining is up almost 5 percent.

Among the major banks, Commonwealth Bank, ANZ Banking, and National Australia Bank have each edged up between 0.3 to 0.5 percent, while Westpac has gained almost 1 percent.

In other developments, Nuix shares have soared by 19 percent following the company's announcement of a positive half-year performance, exceeding its revenue growth targets. Shares in Star Entertainment are on a trading halt after the company confirmed receiving offers from third parties amidst speculation that Florida's Hard Rock Hotels and Casinos may take control. PointsBet shares have surged by 9 percent following an upward revision of its earnings guidance for fiscal 2024.

In currency markets, the Australian dollar is trading at $0.670 on Monday.

The Japanese stock market is also trading significantly higher on Monday, with the benchmark Nikkei 225 Index surging by 1.44 percent to 39,346.92. Japanese shares had slightly declined last Friday. Gains have been seen across most sectors, led by index heavyweights and financial stocks.

Market heavyweight SoftBank Group remains flat, while Fast Retailing, the operator of Uniqlo, has gained more than 2 percent. Among automakers, Honda has added more than 2 percent, and Toyota has gained almost 1 percent.

In the tech sector, Screen Holdings has gained nearly 1 percent, while Tokyo Electron and Advantest have each added more than 1 percent. In banking, Sumitomo Mitsui Financial has gained 1.5 percent, Mitsubishi UFJ Financial over 1 percent, and Mizuho Financial more than 2 percent.

Major exporters are also performing well, with Canon up nearly 2 percent, Mitsubishi Electric up almost 1 percent, Sony edging up 0.5 percent, and Panasonic gaining more than 2 percent.

Leading gainers include Sumitomo Metal Mining, up more than 7 percent, with Mitsubishi Materials and Socionext surging almost 7 percent each. Taisei and Shin-Etsu Chemical are up almost 6 percent each, and ENEOS Holdings has added almost 5 percent. Companies like Mitsui Mining & Smelting, Minebea Mitsumi, Fujikura, Yamaha Motor, Japan Steel Works, and Inpex are up over 4 percent each, with Sumitomo Chemical, NTT Data, and Idemitsu Kosan advancing almost 4 percent each.

Notably, there are no major decliners.

In the currency market, the U.S. dollar is trading in the higher 155 yen range on Monday.In other Asian markets, New Zealand, China, Hong Kong, South Korea, Malaysia, Taiwan, and Indonesia experienced gains ranging between 0.1% and 0.7%. In contrast, Singapore diverged, falling by 0.1%.

On Wall Street, trading on Friday lacked clear direction, mirroring the modest retreat from the previous session. The major indices fluctuated around the breakeven mark throughout the day before ending with mixed results.

Despite the oscillations, the Dow closed at an all-time high, surpassing 40,000 for the first time by adding 134.21 points, or 0.3%, to settle at 40,003.59. The S&P 500 also inched up by 6.17 points, or 0.1%, reaching 5,303.27, while the Nasdaq, weighted with technology stocks, dipped by 12.35 points, or 0.1%, to close at 16,685.97.

Conversely, European markets saw declines across the board. The French CAC 40 Index fell by 0.3%, the U.K.'s FTSE 100 Index decreased by 0.2%, and Germany's DAX Index edged down by 0.1%.

Crude oil prices experienced an uptick on Friday due to easing inflation, a reported drop in inventories, and optimism for potential interest rate cuts. West Texas Intermediate (WTI) crude futures for June advanced to $80.06 per barrel, gaining $0.79, or more than 1%. For the week, WTI futures rose by 2.3%.