CANBERA (dpa-AFX) - Asian stock markets are mostly higher on Wednesday following the mostly positive cues overnight from Wall Street and on optimism about fresh stimulus in the U.S. Investor sentiment received a boost after European Union leaders agreed on a 750 billion euro recovery fund to help revive the euro area economy.
The Australian market is declining following the mixed cues from Wall Street and as investors took profits after strong gains in the previous session. Gains by energy stocks and banks were offset by weakness in the mining and tech sectors.
The benchmark S&P/ASX 200 Index is losing 49.90 points or 0.81 perecnt to 6,106.40, off a low of 6,103.60 earlier. The broader All Ordinaries Index is lower by 46.70 points or 0.74 percent to 6,222.10. On Tuesday Australian stocks closed at its highest level since before the pandemic began.
Among the major miners, BHP Group is losing 3 percent, Fortescue Metals is lower by almost 2 percent and Rio Tinto is declining more than 1 percent.
In the tech space, Afterpay and WiseTech global are lower by more than 3 percent each, while Appen is declining almost 3 percent, tracking the weakness in their U.S. counterparts overnight.
Gold miners are mixed even as gold prices rose overnight. Newcrest Mining is adding 0.5 percent, while Evolution Mining is lower by almost 1 percent.
In the oil sector, Oil Search and Santos are rising more than 3 percent each, while Woodside Petroleum is higher by more than 2 percent after crude oil prices rose to a four-month high overnight.
Beach Energy said its full-year earnings and oil production will be slightly below guidance due to the impact of the coronavirus pandemic and low oil prices. The oil and gas producer's shares are gaining almost 5 percent.
Among the big four banks, ANZ Banking, Commonwealth Bank and National Australia Bank are higher in a range of 0.2 percent to 0.8 percent, while Westpac is advancing more than 1 percent.
QBE Insurance said it expects to report a half-year net loss of $750 million due to the impact of the coronavirus pandemic, higher claims, and an investment portfolio loss. The insurance giant's shares are rising more than 1 percent.
In economic news, Australia will see June results for the leading economic index from Westpac Bank today.
In the currency market, the Australian dollar surged against the U.S. dollar on Wednesday. The local unit was quoted at $0.7133, compared to $0.7038 on Tuesday.
The Japanese market is modestly lower following the mixed lead from Wall Street and on a stronger yen.
Data showing that the manufacturing sector in Japan continued to contract in July dampened sentiment. Investors also remained cautious due to the rising number of coronavirus cases in Tokyo and nearby prefectures.
The benchmark Nikkei 225 Index is down 65.27 points or 0.29 percent to 22,818.95, after falling to a low of 22,774.45 in early trades. Japanese shares closed higher on Tuesday.
Market heavyweight SoftBank Group is edging up 0.1 percent, while Fast Retailing is declining 0.6 percent.
In the tech space, Advantest is losing almost 2 percent and Tokyo Electron is lower by 0.6 percent, tracking the losses by their U.S. counterparts overnight.
In the oil sector, Inpex is rising more than 3 percent and Japan Petroleum is higher by more than 2 percent after crude oil prices rose to a four-month high overnight.
The major exporters are also mostly higher despite a stronger yen. Mitsubishi Electric is advancing almost 2 percent, Panasonic is advancing more than 1 percent and Canon is adding 0.6 percent. Sony is declining more than 1 percent.
In the financial sector, Mitsubishi UFJ Financial and Sumitomo Mitsui Financial are higher by almost 1 percent each. Among automakers, Honda is rising more than 1 percent and Toyota is up 0.3 percent.
Among the other major gainers, Mitsubishi Motors, Tokuyama Corp., Obayashi Corp., Tokyo Seikan Group, Tokyo Gas and Seiko Epson are all rising more than 2 percent each.
Conversely, Daiichi Sankyo is losing more than 4 percent and Trend Micro is lower by almost 3 percent. Terumo Corp., Chughai Pharmaceutical, Kao Corp. and Secom Co. are all declining more than 2 percent each.
On the economic front, the latest survey from Jibun Bank revealed that the manufacturing sector in Japan continued to contract in July, albeit at a slightly slower pace with a manufacturing PMI score of 42.6. That's up from 40.1 in June, although it remains well beneath the boom-or-bust line of 50 that separates expansion from contraction.
Elsewhere in Asia, Shanghai is rising almost 2 percent, while South Korea, New Zealand, Hong Kong and Taiwan are also higher. Indonesia and Malaysia are little changed, while Singapore is lower.
In the currency market, the U.S. dollar is trading in the upper 106 yen-range on Wednesday.
On Wall Street, stocks closed mixed on Tuesday, with the Dow advancing partly due to strong gains by energy giants Chevron and Exxon Mobil as well as beverage giant Coca-Cola. Traders were also reacting to news that European Union leaders agreed on a 750 billion euro stimulus package to tackle the exceptional nature of the economic and social situation posed by the coronavirus pandemic.
While the Nasdaq slid 86.73 points or 0.8 percent to 10,680.36, the Dow climbed 159.53 points or 0.6 percent to 26,840.40 and the S&P 500 rose 5.46 points or 0.2 percent to 3,257.30.
The major European markets moved to the upside on Tuesday. While the German DAX Index jumped by 1 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index edged up by 0.2 percent and 0.1 percent, respectively.
Crude oil prices rose sharply and hit a four-month high on Tuesday as worries about the energy demand outlook faded further after European Union leaders agreed on a stimulus package to help revive the euro area economy. WTI crude for August advanced $1.15 or about 2.8 percent to $41.96 a barrel.
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