CANBERA (dpa-AFX) - Asian stock markets are in positive territory on Friday amid cautious trades following the overnight gains on Wall Street after a Bloomberg News report indicated the U.S. administration will likely delay tariffs on Mexican imports.
However, the White House later said it still intends to impose tariffs on Mexican imports Monday. Talks are set to resume on Friday. Investors are also cautious ahead of the U.S. jobs data for May to be released later in the day. The strength of the jobs data could have a notable impact on the prospects for a near-term interest rate cut by the Federal Reserve.
The Australian is higher for a fourth straight day following the positive cues from Wall Street.
The benchmark S&P/ASX 200 Index is adding 28.00 points or 0.44 percent to 6,411.00, off a high of 6,416.90 earlier. The broader All Ordinaries Index is rising 26.70 points or 0.41 percent to 6,493.10. Australian stocks gained ground on Thursday as financials extended gains for a third straight session.
Oil stocks are higher after crude oil prices rebounded overnight. Woodside Petroleum and Oil Search are rising almost 2 percent each, while Santos is advancing more than 1 percent.
In the mining space, BHP Group is higher by almost 2 percent, Rio Tinto is adding more than 1 percent and Fortescue Metals is up 0.5 percent.
The big four banks - ANZ Banking, Westpac, National Australia Bank and Commonwealth Bank - are edging higher in a range of 0.1 percent to 0.4 percent.
Gold miners are mixed despite gold prices extending gains to a seventh straight session overnight. Newcrest Mining is up almost 1 percent, while Evolution Mining is down 0.3 percent.
In economic news, the latest survey from the Australian Industry Group revealed that the construction sector in Australia continued to contract in May, and at an accelerated rate, with a Performance of Construction Index score of 40.4. That's down from 42.6 in April and it moves further beneath the boom-or-bust line of 50 - now sitting at a six-year low.
Australia will also provide April numbers for home loans today.
In the currency market, the Australian dollar is slightly higher against the U.S dollar on Friday. The local currency was quoted at $0.6977, up from $0.6972 on Thursday.
The Japanese market is modestly higher as investors await the outcome of the U.S.-Mexico trade negotiations and the release of U.S. jobs data for May later in the day.
The benchmark Nikkei 225 Index is adding 58.00 points or 0.28 percent to 20,832.04, after touching a high of 20,890.63 in early trades. Japanese shares ended roughly flat on Thursday.
The major exporters are mostly higher on a weaker yen. Sony and Panasonic are adding 0.3 percent each, while Canon is up 0.2 percent. Mitsubishi Electric is down 0.2 percent.
In the auto space, Toyota Motor is adding 0.5 percent, while Honda Motor is down 0.2 percent. Among tech stocks, Advantest is higher by more than 4 percent and Tokyo Electron is rising more than 2 percent.
Among the major banks, Mitsubishi UFJ Financial is declining 0.3 percent and Sumitomo Mitsui Financial is edging lower by 0.1 percent. In the oil sector, Inpex is advancing more than 1 percent while Japan Petroleum is edging down 0.1 percent.
Among the major gainers, Chiyoda Corp. is rising more than 9 percent, while Screen Holdings and Yahoo Japan are gaining almost 4 percent each.
On the flip side, Resona Holdings, Concordia Financial and Chubu Electric Power are losing almost 2 percent.
In the currency market, the U.S. dollar is trading in the mid 108 yen-range on Friday.
Elsewhere in Asia, South Korea, New Zealand, Singapore and Malaysia are also higher. The markets in Taiwan, China and Hong Kong are closed on Friday for the Dragon Boat Festival, while Indonesia remains shuttered for Eid-ul-Fitr.
On Wall Street, stocks closed higher on Thursday, extending the upward move seen over the previous two sessions. Considerable buying interest was generated late in the session after a report from Bloomberg News indicating the U.S. is considering delaying President Donald Trump's threatened tariffs on Mexico.
The Dow advanced 181.09 points or 0.7 percent to 25,720.66, the Nasdaq rose 40.08 points or 0.5 percent to 7,615.55 and the S&P 500 climbed 17.34 points or 0.6 percent to 2,843.49.
The major European markets ended mixed on Thursday. While the U.K.'s FTSE 100 Index climbed by 0.6 percent, the German DAX Index and the French CAC 40 Index fell by 0.2 percent and 0.3 percent, respectively.
Crude oil prices rebounded on Thursday as fears about energy demand subsided a bit amid reports the U.S. administration will likely delay tariffs on Mexican imports. WTI crude for July rose $0.91 or 1.8 percent to close at $52.59 a barrel on the New York Mercantile Exchange.
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