CANBERA (dpa-AFX) - Asian stock markets are mostly higher on Wednesday despite the negative cues overnight from Wall Street, as crude oil prices rebounded more than 11 percent in Asian trades and on improved sentiment following the re-opening of businesses in several virus hot spots in Europe and some select states in the U.S. Investors now look ahead to the U.S. Federal Reserve's monetary policy decision due later in the day.
The Federal Reserve is widely expected to leave interest rates unchanged at near-zero levels, although the central bank could provide additional guidance regarding how long it plans to keep rates at their current levels. Some economists have suggested the Fed could take steps toward yield curve control and announce targeted asset purchases as part of an effort to pin down longer-term yields.
The Australian market is higher despite as investors remained optimistic about the easing of coronavirus pandemic restrictions in the country. However, the mood remains cautious ahead of the Federal Reserve's monetary policy announcement due later in the day.
The benchmark S&P/ASX 200 Index is adding 8.30 points or 0.16 percent to 5,321.40, after rising to a high of 5,339.10 earlier. The broader All Ordinaries Index is advancing 10.30 points or 0.19 percent to 5,391.50. Australian stocks fluctuated before ending lower on Tuesday.
The big four banks are notably higher. National Australia Bank is gaining more than 4 percent, ANZ Banking is rising more than 3 percent, Westpac is advancing almost 3 percent and Commonwealth Bank is higher by more than 2 percent.
In the oil sector, Oil Search is gaining more than 3 percent, while Santos and Woodside Petroleum are rising more than 2 percent each, as crude oil futures rose more than 8 percent in Asian trading after falling overnight.
In the mining space, BHP and Fortescue Metals are advancing more than 1 percent each, while Rio Tinto is edging up 0.1 percent.
Among gold miners, Evolution Mining is losing almost 3 percent and Newcrest Mining is lower by almost 1 percent after safe-haven gold prices extended losses for a third straight session overnight.
U.S. private equity firm Blackstone Group has acquired 67.68 million shares in Crown Resorts, representing a stake of almost 10 percent, from Macau casino operator Melco Resorts & Entertainment for a price of A$8.15 per share, Crown Resorts said. Shares of Crown Resorts are gaining more than 10 percent.
In economic news, the Australian Bureau of Statistics said that overall consumer prices in Australia were up 0.3 percent on quarter in the first quarter of 2020. That exceeded expectations for an increase of 0.2 percent and was down from 0.7 percent in the three months prior.
The Reserve Bank of Australia's trimmed mean was up 0.5 percent on quarter and 1.8 percent on year, following the 0.4 percent quarterly increase and the 1.6 percent yearly gain in the previous three months.
In the currency market, the Australian dollar is higher against the U.S. dollar on Wednesday. The local unit was quoted at $0.6509, compared to $0.6482 on Tuesday.
Elsewhere in Asia, Taiwan is rising more than 1 percent and South Korea is advancing almost 1 percent. Shanghai, Hong Kong, Indonesia and Malaysia are also higher, while New Zealand is declining. The Japanese market is closed for the Showa Day holiday.
On Wall Street, stocks closed lower on Tuesday after seeing initial strength amid continued optimism that the U.S. is seeing 'the light at the end of the tunnel' of the coronavirus pandemic. Buying interest waned shortly after the start of trading, however, inspiring some traders to cash in on recent strength in the markets. The choppy trading on Wall Street also came as traders looked ahead to the Federal Reserve's monetary policy announcement on Wednesday.
While the Nasdaq plunged 122.43 points or 1.4 percent to 8,607.73, the Dow edged down 32.23 points or 0.1 percent to 24,101.55 and the S&P 500 fell 15.09 points or 0.5 percent to 2,863.39.
The major European markets moved to the upside on Tuesday. While the U.K.'s FTSE 100 Index spiked by 1.9 percent, the French CAC 40 Index and the German DAX Index surged up by 1.4 percent and 1.3 percent, respectively.
Crude oil prices plunged sharply in early trades Tuesday and despite regaining most of the lost ground as the session progressed, settled notably lower again. WTI crude for June ended down $0.44, or 3.4 percent, at $12.34 a barrel. In Asian trades, crude oil is gaining $1.43 or 11.59 percent to $13.77 a barrel.
Copyright RTT News/dpa-AFX
© 2020 AFX News
