CANBERA (dpa-AFX) - Asian stock markets are in negative territory on Friday following the weak cues overnight from Wall Street amid renewed uncertainty about the near-term outlook for interest rates in the U.S. and Europe.
European Central Bank President Mario Draghi's comments calling the risk of a recession 'pretty low' offset optimism about a sharp reduction in rates. In addition, data showing a substantial rebound in U.S. durable goods orders dented investor optimism about a near-term rate cut by the Federal Reserve.
The Australian market is declining following the negative cues overnight from Wall Street. Almost all sectors are trading weak, led by tech stocks.
The benchmark S&P/ASX 200 Index is losing 26.90 points or 0.39 percent to 6,791.10. The broader All Ordinaries Index is lower by 28.50 points or 0.41 percent to 6,873.40. Australian stocks closed higher on Thursday.
In the tech space, Appen is losing 3 percent, Afterpay Touch is lower by almost 2 percent and WiseTech Global is declining more than 1 percent.
Among the big four banks, ANZ Banking, National Australia Bank and Westpac are losing in a range of 0.2 percent to 0.8 percent, while Commonwealth Bank is edging up 0.1 percent.
Commonwealth Bank said it has received regulatory approval for the A$4.2 billion divestment of its Colonial First State Global Asset management unit.
In the mining space, Fortescue Metals is declining almost 1 percent and BHP Group is down 0.2 percent, while Rio Tinto is adding 0.4 percent.
Oil stocks are also mostly lower despite a modest increase in crude oil prices overnight. Santos is down 0.2 percent and Woodside Petroleum is lower by 0.1 percent, while Oil Search is rising 0.5 percent.
Gold miners are mixed after gold prices declined overnight. Evolution Mining is advancing more than 1 percent, while Newcrest Mining is declining 0.2 percent.
ResMed reported a 28 percent increase in full-year profit on 11 percent growth in revenues. Shares of the respiratory face mask and machine maker are gaining almost 4 percent.
A group of six mining companies have appealed a Queensland Supreme Court ruling in Aurizon's favor after the rail freight company charged extra fees for upgraded rail links to a Queensland port. Aurizon said it is considering the appeal and 'will respond in accordance with the Court of Appeal's mandated timeframes.' The company's shares are lower by 0.7 percent.
In the currency market, the Australian dollar is lower against the U.S. dollar. The local currency was quoted at $0.6951, compared to $0.6969 on Thursday.
The Japanese market is losing after three straight days of gains. The benchmark Nikkei 225 Index is lower by 109.86 points or 0.50 percent to 21,646.69, after touching a low of 21,639.40 earlier. Japanese stocks closed higher on Thursday.
The major exporters are mixed despite a weaker yen. Canon is advancing more than 1 percent and Sony is adding 0.6 percent, while Mitsubishi Electric is declining more than 1 percent and Panasonic is down 0.2 percent.
In the tech space, Tokyo Electron is lower by more than 1 percent and Advantest is down 0.2 percent.
Market heavyweight SoftBank is declining 0.2 percent after the company announced a second Vision Fund that intends to invest in artificial intelligence or AI technology and signed memorandums of understanding with investors, including Apple, Microsoft and Foxconn Technology.
In the auto space, Honda Motor is losing almost 2 percent and Toyota Motor is declining 0.7 percent. Toyota said it will set up a joint venture with Chinese ride-hailing service Didi Chuxing and invest 64.8 billion yen in Didi and the new venture.
Shares of Nissan Motor are lower by more than 2 percent after the automaker reported a nearly 95 percent plunge in first-quarter net income and also said it will cut 12,500 jobs.
In the oil sector, Inpex is lower by almost 1 percent and Japan Petroleum is declining 0.7 percent even as crude oil prices rose modestly overnight.
Among the other major gainers, Fujitsu is gaining more than 8 percent, Chughai Pharmaceutical Co. is rising almost 4 percent and NTT Data Corp is higher by more than 3 percent.
On the flip side, Nisshin Seifun Group is losing almost 10 percent, Fuji Electric is falling 9 percent and Omron Corp. is lower by more than 7 percent.
On the economic front, the Ministry of Internal Affairs and Communications said that consumer prices in the Tokyo region of Japan were up 0.9 percent on year in July. That was shy of expectations for a gain of 0.9 percent and down from 1.1 percent in June.
Core CPI, which excludes volatile food prices, also rose an annual 0.9 percent. That was unchanged from the June reading, although it exceeded estimates for 0.8 percent.
In the currency market, the U.S. dollar is trading in the upper 108 yen range.
Elsewhere in Asia, Indonesia is declining more than 1 percent, while Shanghai, South Korea, New Zealand, Singapore, Malaysia, Hong Kong and Taiwan are also lower.
On Wall Street, stocks closed lower on Thursday, partly reflecting renewed uncertainty about the near-term outlook for monetary policy in the U.S. and Europe. The European Central Bank initially generated some positive sentiment by leaving interest rates unchanged, but signaled a future rate cut. However, ECB President Mario Draghi's subsequent comments calling the risk of a recession 'pretty low' offset optimism about a sharp reduction in rates.
The Dow slid 128.99 points or 0.5 percent to 27,140.98, the Nasdaq tumbled 82.96 points or 1 percent to 8,238.54 and the S&P 500 fell 15.89 points or 0.5 percent to 3,003.67.
The major European markets turned lower over the course of the session on Thursday. While the German DAX Index tumbled by 1.3 percent, the French CAC 40 Index fell by 0.5 percent and the U.K.'s FTSE 100 Index dipped by 0.2 percent.
Crude oil futures ended modestly higher on Thursday, after having settled lower a session earlier despite a larger than expected drop in U.S. crude stockpiles in the week ended July 19. WTI crude for September added $0.14 or about 0.3 percent to close at $56.02 a barrel.
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