CANBERA (dpa-AFX) - Asian stock markets are trading mostly higher on Thursday, following the mixed cues from Wall Street overnight, amid optimism about the outlook for interest rates following the release of the closely watched US inflation data that came in line with estimates. The report has increased confidence that the US Fed will lower interest rates by another quarter-point next week. Persisting tensions in the Middle East continues to weigh on the markets. Asian Markets closed mixed on Wednesday.
CME Group's FedWatch Tool is currently indicating a 98.6 percent chance the Fed will cut rates by 25 basis points at its December meeting.
The Australian market pared early gains and is trading modestly lower in mid-market moves on Thursday, extending the losses in the previous two sessions, following the mixed cues from Wall Street overnight. The benchmark S&P/ASX 200 is staying well below the 8,400 level, after the release of upbeat domestic jobs data dimed hopes for an early interest rate cut in 2025.
The benchmark S&P/ASX 200 Index is losing 16.20 points or 0.19 percent to 8,337.40, after trading in a range of 8,386.40 to 8,327.90 in the morning session. The broader All Ordinaries Index is down 13.30 points or 0.15 percent to 8,597.10. Australian stocks ended notably lower on Wednesday.
Among major miners, Mineral Resources is gaining almost 1 percent, while Fortescue Metals, BHP Group and Rio Tinto are edging down 0.1 to 0.5 percent each.
Oil stocks are mostly lower. Woodside Energy and Santos are edging down 0.1 to 0.3 percent, while Origin Energy is losing more than 1 percent. Beach energy is surging almost 10 percent.
In the tech space, Afterpay owner Block and Appen are gaining more than 4 percent each, while Zip and WiseTech Global are up more than 1 percent each. Xero are adding 1.5 percent.
Among the big four banks, Commonwealth Bank, ANZ Banking, Westpac and National Australia Bank are all edging down 0.1 to 0.3 percent each.
Among gold miners, Gold Road Resources is edging up 0.2 percent, Resolute Mining is adding more than 2 percent and Newmont is up more than 1 percent. Northern Star Resources is losing almost 1 percent. Evolution Mining is flat.
In economic news, the unemployment rate in Australia came in at a seasonally adjusted 3.9 percent in November, the Australian Bureau of Statistics said on Thursday. That was lower than forecasts for 4.2 percent and down from 4.1 percent in October. The participation rate was 67.0, shy of expectations for 67.1 percent - which would have been unchanged.
In the currency market, the Aussie dollar is trading at $0.641 on Thursday.
Extending the gains in the previous three sessions, the Japanese market is sharply higher on Thursday, following the mixed cues from Wall Street overnight. The Nikkei 225 is moving up to be a tad below the 39,900 level after breaching the 40,000 mark earlier, with gains across most sectors led by index heavyweights, exporters and technology stocks.
The benchmark Nikkei 225 Index closed the morning session at 39,881.10, up 508.87 points or 1.29 percent, after touching a high of 40,091.55 earlier. Japanese shares ended slightly higher on Wednesday.
Market heavyweight SoftBank Group is gaining more than 2 percent and Uniqlo operator Fast Retailing is adding more than 1 percent. Among automakers, Toyota is gaining more than 1 percent, while Honda is edging down 0.4 percent.
In the tech space, Advantest is gaining more than 4 percent and Tokyo Electron is adding more than 1 percent, while Screen Holdings is edging down 0.1 percent.
In the banking sector, Mizuho Financial is gaining almost 1 percent, Sumitomo Mitsui Financial is edging up 0.2 percent and Mitsubishi UFJ Financial is adding more than 1 percent.
Among the major exporters, Canon is gaining 1.5 percent and Panasonic is adding more than 1 percent, while Mitsubishi Electric and Sony are advancing almost 3 percent each.
Among other major gainers, Fujikura is surging more than 5 percent and DeNA is gaining more than 4 percent, while Chubu Electric Power and Recruit Holdings are adding almost 4 percent each. Mitsubishi Electric, Furukawa Electric and Rakuten Group are up more than 3 percent each, while Aeon, Mitsubishi Heavy Industries, NTT Data, Sumitomo Metal Mining, Osaka Gas and Shimizu are all advancing almost 3 percent each.
Conversely, there are no other major losers.
In the currency market, the U.S. dollar is trading in the lower 152 yen-range on Thursday.
Elsewhere in Asia, Hong Kong, Singapore, South Korea, and Taiwan are higher by between 0.1 and 0.9 percent each, while New Zealand and Indonesia are down 0.5 percent each. China is relatively flat.
On Wall Street, stocks moved mostly higher during trading on Wednesday, rebounding strongly following the pullback seen to start the week. The tech-heavy Nasdaq showed a particularly strong upward move, closing above 20,000 for the first time.
The Nasdaq surged 347.65 points or 1.8 percent to a new record closing high of 20,034.89, while the S&P 500 climbed 49.28 points or 0.8 percent to 6,084.19. Meanwhile, the narrower Dow showed a lack of direction over the course of the session before closing down 99.27 points or 0.2 percent at 44,148.56.
Meanwhile, the major European markets have all moved to the upside on the day. While the French CAC 40 Index climbed by 0.4 percent, the German DAX Index and the U.K.'s FTSE 100 Index rose increased by 0.3 percent.
Crude oil prices settled higher Wednesday on possible sanctions on Russia by the European Union, expectations of increased demand from China and data showing a jump in gasoline stockpiles. West Texas Intermediate crude oil futures for January closed up $1.70 or 2.5 percent at $70.29 a barrel.
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