CANBERA (dpa-AFX) - Asian stock markets are lower on Monday, while gold and oil prices rose following the negative cues from Wall Street Friday amid heightened geopolitical tensions in the Middle East after a U.S. airstrike killed Iranian military commander Qassem Soleimani last week.
Iran has vowed to retaliate in revenge for Soleimani's death and said it will no longer abide by the limits on uranium enrichment contained in the 2015 nuclear deal.
The Australian market is declining following the losses on Wall Street Friday amid rising geopolitical tensions in the Middle East.
The benchmark S&P/ASX 200 Index is losing 47.60 points or 0.71 percent to 6,685.90, after touching a low of 6,671.70 earlier. The broader All Ordinaries Index is lower by 46.80 points or 0.68 percent to 6,808.40. Australian stocks closed higher on Friday.
In the banking space, ANZ Banking, Commonwealth Bank, National Australia Bank are lower in a range of 1.0 percent to 1.2 percent, while Westpac Banking is down almost 1 percent.
The major miners are also lower. Fortescue Metals is losing more than 1 percent, Rio Tinto is declining 1 percent and BHP is down 0.3 percent.
Among industrial stocks, Transurban is lower by 1 percent and Qantas is losing almost 3 percent.
Meanwhile, gold miners are notably higher after safe-haven gold prices rose to a four-month high on Friday. Evolution Mining is higher by more than 3 percent and Newcrest Mining is gaining almost 3 percent.
Oil stocks are higher after crude oil prices rose to a seven-month high on Friday. Oil Search is rising 2 percent, while Santos and Woodside Petroleum are adding more than 1 percent each.
In economic news, the latest survey from the Australian Industry Group revealed that the manufacturing sector in Australia continued to contract in December, albeit at a slower rate, with a Performance of Manufacturing Index score of 48.3. That's up from 48.1 in November, although it remain beneath the boom-or-bust line of 50 that separates expansion from contraction.
In the currency market, the Australian dollar is lower against the U.S. dollar on Monday. The local currency was quoted at $0.6939, compared to $0.6963 on Friday.
The Japanese market is notably lower on its first trading day of the New Year, while the safe-haven yen strengthened following the weak cues from Wall Street Friday amid rising tensions in the Middle East.
The benchmark Nikkei 225 Index is losing 446.29 points or 1.89 percent to 23,210.33, after falling to a low of 23,208.30 earlier. The Japanese market was closed since last Tuesday for the New Year holidays.
Market heavyweight SoftBank Group Corp. is declining more than 2 percent and Fast Retailing is losing almost 3 percent.
In the tech space, Advantest and Tokyo Electron are lower by more than 1 percent each.
The major exporters are lower on a stronger yen. Mitsubishi Electric and Panasonic are losing more than 1 percent each, while Canon is lower by almost 1 percent and Sony is down 0.3 percent.
Among auto stocks, Honda Motor is falling almost 3 percent and Toyota Motor is declining 2 percent.
In the oil sector, Japan Petroleum and Inpex are rising more than 2 percent each after crude oil prices rose to a seven-month high on Friday.
Among the other major gainers, J Front Retailing is rising more than 3 percent, JXTG Holdings is higher by almost 3 percent and Idemitsu Kosan is advancing almost 2 percent.
On the flip side, Nippon Light Metal and Mitsui OSK Lines are losing more than 4 percent each, Kawasaki Kisen Kaisha is lower by 4 percent and Unitika is declining almost 4 percent.
Fuji Xerox, a subsidiary of Fujifilm Holdings, said it is changing its corporate name to Fujifilm Business Innovation Corp. as of April 1, 2021. The company's affiliates as well as sales companies in and outside Japan will also change their names on April 1, 2021, with their new names to be announced at a later date. Shares of Fujifilm Holdings are lower by more than 1 percent.
On the economic front, the latest survey from Nikkei revealed that the manufacturing sector in Japan continued to contract in December, and at a faster rate, with a manufacturing PMI score of 48.4. That's down from 48.9 in November and it moves further beneath the boom-or-bust line of 50 that separates expansion from contraction. Japan will also see December data for vehicle sales today.
In the currency market, the U.S. dollar is trading in the lower 108 yen-range on Monday.
Elsewhere in Asia, South Korea and Taiwan are lower by more than 1 percent each, while Malaysia is declining almost 1 percent. Singapore, New Zealand, Indonesia, Hong Kong are also lower. Bucking the trend, Shanghai is adding 0.3 percent.
On Wall Street, stocks closed notably lower on Friday amid rising geopolitical tensions following news a U.S. airstrike killed Iranian military leader Qassem Soleimani. Adding to the negative sentiment on Wall Street, the Institute for Supply Management released a report showing U.S. manufacturing activity unexpectedly contracted at a faster rate in the month of December.
The Dow tumbled 233.92 points or 0.8 percent to 28,634.88, the Nasdaq slumped 71.42 points or 0.8 percent to 9,020.77 and the S&P 500 fell 23.00 points or 0.7 percent to 3,234.85.
The major European markets also finished mixed on Friday. The German DAX Index tumbled by 1.3 percent, while the French CAC 40 Index closed just above the unchanged line and the U.K.'s FTSE 100 Index edged up by 0.2 percent.
Crude oil prices rose sharply on Friday and settled at a seven-month high amid an escalation in tensions in the Middle East after an airstrike by the U.S. killed Iranian military leader Qassem Soleimani. WTI crude for February delivery jumped $1.87 or about 3.1 percent to $63.05 a barrel.
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