(RTTNews) – Asian stock markets are trading mostly lower on Monday, following mixed signals from Wall Street on Friday, as the dollar strengthened to its highest level in two years and China strengthened. closer to possible closures after a spike in COVID-19 cases, raising concerns about slowing growth. Asian markets mostly closed higher on Friday.
Meanwhile, the release of a closely watched Labor Department report showed stronger-than-expected U.S. job growth in June. While it eased worries about the economy, it also heightened concerns about aggressive interest rate hikes by the Federal Reserve.
The Australian stock market is slightly lower on Monday, giving up some of the gains from the previous two sessions, with the benchmark S&P/ASX 200 index remaining above the 6,600 level, following mixed signals from Wall Street on Friday, with a weakness in technology and materials stocks partially offset by gains in energy and financial stocks.
The benchmark S&P/ASX 200 lost 39.20 points or 0.59% to 6,638.80, after hitting a low of 6,634.60 earlier. The broader All Ordinaries index is down 45.60 points or 0.66% at 6,831.40. Australian shares closed slightly higher on Friday.
Among the major miners, BHP Group and OZ Minerals are down almost 2% each, while Rio Tinto is down 0.5% and Fortescue Metals is down more than 1%. Mineral resources gain nearly 1%.
Oil inventories are mostly higher. Santos is up nearly 1% and Woodside Energy is up nearly 2%, while Beach Energy is down 0.3%. The original energy is flat.
Among tech stocks, Afterpay owner Block, WiseTech Global and Xero are down more than 1% each, while Zip is down nearly 5% and Appen is down nearly 1%.
Shares of EML Payments have fallen nearly 18% following the surprise resignation of its chief executive Tom Cregan after more than a decade with the company.
Gold miners are weak, with Gold Road Resources and Evolution Mining down nearly 3% each, while Newcrest Mining is down more than 1% and Northern Star Resources down more than 2%. Resolute Mining is flat.
Among the big four banks, Commonwealth Bank gained more than 1% and Westpac gained almost 1%, while ANZ Banking and National Australia Bank rose 0.4% each.
In the currency market, the Australian dollar is trading at $0.682 on Monday.
The Japanese stock market is significantly higher on Monday, extending the gains of the previous two sessions, with the Nikkei 225 moving just below the 26,800 level, following mixed signals from Wall Street on Friday, amid prospects for administrative stability after expansion of the ruling coalition. its majority in an election to the upper house.
The benchmark Nikkei 225 closed the morning session at 26,787.00, up 269.81 or 1.02%, after hitting a high of 27,062.17 earlier. Japanese stocks ended slightly higher on Friday.
The SoftBank group, heavyweight in the market, gained more than 2% and the operator Uniqlo Fast Retailing added nearly 3%. Among automakers, Honda and Toyota are gaining nearly 2% each.
In technology, Advantest is stable, Tokyo Electron is down almost 2% and Screen Holdings is down almost 1%. In banking, Sumitomo Mitsui Financial and Mizuho Financial each earn nearly 1%, while Mitsubishi UFJ Financial earns more than 1%.
Major exporters are mostly higher, with Sony gaining 2.5%, Mitsubishi Electric adding more than 1%, Panasonic up 1.5% and Canon up more than 2%. Among other big winners, Isetan Mitsukoshi is up more than 5%, while Daiichi Sankyo, JGC Holdings and Olympus each gain more than 4%. Citizen Watch and Sumitomo Realty & Development add nearly 4% each, while Recruit Holdings, Denso, J. Front Retailing, Seiko Epson, Mazda Motor, Terumo, Takashimaya and Marui Group are all up more than 3% each.
Conversely, Toray Industries plunged nearly 7% and Yaskawa Electric lost nearly 4%.
In economic news, the value of basic machinery orders in Japan fell 5.6% in May, seasonally adjusted, the Cabinet Office said on Monday, reaching 908.8 billion yen. That narrowly missed expectations of a 5.5% decline after peaking at 10.8% in April. On a yearly basis, basic machinery orders rose 7.4%, beating the forecast of 5.8% and down from 19.0% the previous month. For the second quarter of 2022, core machinery orders are expected to decline 8.1% quarter-on-quarter and 5.6% year-on-year to 2,370.6 billion yen.
In the currency market, the US dollar is trading in the upper range of 136 yen on Monday.
Elsewhere in Asia, Hong Kong and China are down 2.5% and 1.4%, respectively. New Zealand, South Korea, Taiwan and Indonesia are lower by 0.1 to 0.5% each. Markets in Malaysia and Singapore are closed for the Eid-ul-Adha holiday.
On Wall Street, stocks showed a lack of direction during Friday’s trading day after trending higher in recent sessions. Major averages recovered from an early move lower, but spent the rest of the session bouncing off the unchanged line.
Major averages ultimately ended the session narrowly mixed. While the Nasdaq edged up 13.96 points or 0.1% to 11,635.08, the Dow Jones fell 46.40 points or 0.2% to 31,338.15 and the S&P 500 edged lower down 3.24 points or 0.1% to 3,899.38.
Meanwhile, major European markets moved higher during the session. While the German DAX index jumped 1.3%, the French CAC 40 index climbed 0.4% and the British FTSE 100 index climbed 0.1%.
Crude oil prices rose on Friday, gaining for a second straight day after the stronger-than-expected jobs report. West Texas Intermediate crude oil futures for August jumped $2.06 or 2% to $104.79 a barrel, but WTI crude futures lost more than 3% during the week.
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