(RTTNews) – Asian stock markets were mixed on Friday after weak US inflation data for June strengthened expectations that the Federal Reserve may cut interest rates as soon as its September meeting. Bond yields also fell and the US dollar weakened against most currencies in the region. Asian markets ended mostly higher on Thursday.
Following the report, the chances of a September rate cut jumped to 84.6% from 69.7% two days earlier, according to CME Group’s FedWatch tool.
The Australian share market continued to rise strongly on Friday, following the previous day’s gains and mixed signals from Wall Street overnight. The benchmark S&P/ASX 200 was well above the 7,900 level, with most sectors rising, led by mining and technology stocks.
The benchmark S&P/ASX 200 index rose 73.00 points, or 0.93 percent, to 7,962.60 after earlier hitting a high of 7,969.10. The broader All Ordinaries index rose 75.00 points, or 0.92 percent, to 8,208.40. Australian markets ended broadly higher on Thursday.
Among major mining companies, Rio Tinto rose almost 1 percent, Fortescue Metals rose 0.5 percent and Mineral Resources rose more than 2 percent, while BHP Group was down 0.4 percent.
Oil stocks were mostly higher, with Origin Energy, Beach Energy and Santos all rising 0.1-0.5 percent, and Woodside Energy up almost 1 percent.
Among tech stocks, Afterpay parent Block and Appen are up more than 3% each, while Zip is up nearly 2%. Zero is down nearly 1% and WiseTech Global is down nearly 2%.
Of the big four banks, Commonwealth Bank, ANZ and Westpac are each up nearly 1%, while National Australia Bank is up almost 2%. Gold mining stocks are mostly rising: Evolution Mining is up 2.5%, Gold Road Resources is up more than 2%, Northern Star Resources is up 3.5%, Resolute Mining is surging almost 6% and Newmont is up almost 3%.
In currency markets, the Australian dollar was trading at $0.676 on Friday.
Japan’s stock market fell sharply on Friday, reversing a three-session gain the previous day and following mixed signals from Wall Street overnight. The benchmark Nikkei stock average slid 2% from its all-time high to below 41,400. Weakness was seen across most sectors, led by the index’s major stocks, exporters and technology companies.
The benchmark Nikkei Stock Average closed the morning session at 41,388.92, down 835.10 points, or 1.98 percent, from the previous day’s low of 41,188.29. Japanese stocks ended the day with strong gains.
Market giant SoftBank Group Inc. fell more than 3%, while Uniqlo operator Fast Retailing Co. Inc. dropped nearly 4%. Among automakers, Honda lost nearly 1%, while Toyota Inc. slipped slightly, down 0.3%.
In the technology sector, Advantest fell about 5%, Tokyo Electron fell more than 6% and Screen Holdings dropped 4.5%.
In the banking sector, Sumitomo Mitsui Financial, Mizuho Financial and Mitsubishi UFJ Financial were all down more than 2%.
Among major exporters, Mitsubishi Electric is down about 2%, Panasonic is down about 1%, Sony is down more than 2% and Canon is down about 3%.
Other major decliners include Disco, down about 8%, Seven & i Holdings, down more than 7%, Renesas Electronics and Dai-ichi Life Holdings, down about 5% each, Tokio Marine and T&D Holdings, down more than 4% each, Isetan Mitsukoshi, MS&AD Insurance, and Taiyo Yuden, down about 4% each, and Takashimaya, down more than 3%.
Conversely, M3 and Nitori Holdings are up more than 4% each, while Okuma is up nearly 3%.
In the foreign exchange market, the US dollar was trading in the low 159 yen range on Friday.
Elsewhere in Asia, Hong Kong rose 2.0%, New Zealand, China, Singapore and Indonesia rose 0.1-0.5% each, Taiwan slumped 2.1%, South Korea fell 1.3% and Malaysia dropped 0.2%.On Wall Street, stock markets posted sharp declines during Thursday’s trading session, with the Nasdaq and S&P 500 both dropping sharply after hitting intraday highs at the start of trading.
The tech-heavy Nasdaq was especially sharp, dropping 364.04 points, or 2.0%, to 18,283.41, while the S&P 500 lost 49.37 points, or 0.9%, to 5,584.54, while the narrower Dow rose 32.39 points, or 0.1%, to close at 39,753.85 after remaining unchanged for most of the day.
Meanwhile, major European markets rose on the day, with the UK’s FTSE 100 index rising 0.4%, while France’s CAC 40 and Germany’s DAX both rising 0.7%.
Oil prices closed higher on Thursday as positive inflation readings spurred hopes of an interest rate cut by the Federal Reserve. August West Texas Intermediate crude oil futures closed down $0.52 at $82.62 a barrel.
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