CANBERA (dpa-AFX) - Asian stock markets are trading mostly higher on Monday, following the broadly positive cues from Wall Street on Friday, as weaker-than-expected U.S. monthly jobs data led to optimism the US Fed may hold off on raising interest rates later this month. However, spiking bond yields and heightened uncertainty in the Middle East conflict weighed on market sentiment. Asian markets closed mixed on Friday.
Saudi-backed forces in Yemen have launched a full-scale military operation to retake areas controlled by the Houthis, an Iran-backed group. The Houthis seized control of Bab el-Mandeb, a strategic chokepoint between the Red Sea and the Gulf of Aden. Saudi Arabia had been using this route to export oil while avoiding the Strait of Hormuz.
The Australian stock market is modestly higher on Monday, extending the gains in the previous session, following the broadly positive cues from Wall Street on Friday. The benchmark S&P/ASX 200 index is moving above the 8,7asx00.00 level, with gains in energy and financial partially offset by weakness in gold miners and technology stocks.
The benchmark S&P/ASX 200 Index is gaining 19.40 points or 0.22 percent to 8,701.50, after touching a high of 8,735.60 earlier. The broader All Ordinaries Index is up 22.60 points or 0.26 percent to 8,877.30. Australian stocks closed significantly higher on Friday.
Among the major miners, BHP Group and Rio Tinto are gaining more than 1 percent each, while Mineral Resources is edging down 0.4 percent. Fortescue is flat.
Oil stocks are mostly higher. Woodside Energy and Origin Energy are edging up 0.1 to 0.2 percent each, while Santos is gaining more than 1 percent. Beach energy is edging down 0.4 percent.
Among tech stocks, Afterpay owner Block and Appen are edging up 0.4 percent each, while WiseTech Global is losing more than 2 percent, Xero is down more than 1 percent and Zip is edging down 0.5 percent.
Gold miners are mostly lower. Genesis Minerals and Resolute Mining are losing almost 1 percent each, while Northern Star Resources and Evolution Mining are edging down 0.2 to 0.4 percent each. Newmont is gaining almost 1 percent.
Among the big four banks, Commonwealth Bank, ANZ Banking and National Australia Bank are gaining almost 1 percent each, while Westpac is adding more than 1 percent.
In economic news, Australia's Melbourne Institute Monthly Inflation Gauge rose 0.3 percent on month in September 2026, slowing from a 0.5 percent increase in the previous month and marking the softest reading since June. Annual inflation accelerated to 4.0 percent in August from 3.5 percent in July, the highest in three months and still above the Reserve Bank of Australia's 2 to 3 percent target range.
The S&P Global Australia Services PMI Business Activity Index eased to 51.9 in September 2026 from 53.2 in August, but came above the preliminary estimate of 51.4 and marked a fourth straight month of expansion. Composite PMI was revised higher to 51.3 in September 2026 from a preliminary estimate of 50.8, but remained below the final reading of 52.7 in August and still marked the lowest reading since June.
In the currency market, the Aussie dollar is trading at $0.694 on Monday.
The Japanese stock market is sharply higher on Monday, reversing the losses in the previous session, following the broadly positive cues from Wall Street on Friday. The Nikkei 225 is moving above the 70,000 mark, with gains across most sectors led by index heavyweights and technology stocks.
The benchmark Nikkei 225 Index closed the morning session at 70,037.61, up 1,728.15 points or 2.53 percent, after touching a high of 70,072.13 earlier. Japanese shares ended significantly lower on Friday.
Market heavyweight SoftBank Group is advancing almost 4 percent and Uniqlo operator Fast Retailing is advancing almost 3 percent. Among automakers, Honda is edging down 0.1 percent, while Toyota is gaining more than 1 percent.
In the tech space, Advantest is surging almost 5 percent, Tokyo Electron is jumping more than 5 percent and Screen Holdings is gaining more than 2 percent.
In the banking sector, Sumitomo Mitsui Financial is edging down 0.5 percent, Mizuho Financial is gaining almost 2 percent and Mitsubishi UFJ Financial is adding more than 1 percent.
The major exporters are mostly higher. Mitsubishi Electric and Panasonic are gaining more than 2 percent each, while Canon is adding almost 1 percent. Sony is edging down 0.1 percent.
Among the other major gainers, TDK is soaring almost 7 percent and Renesas Electronics is jumping almost 6 percent, while Disco, Mitsui Kinzoku, Taiyo Yuden and Kyocera are surging almost 5 percent each. Kokusai Electric, Minebea Mitsumi and NGK are advancing almost 4 percent each, while Komatsu, Nitori Holdings and Fuji Electric are gaining more than 3 percent each.
Conversely, there are no other major losers.
In the currency market, the U.S. dollar is trading in the higher 157 yen-range on Monday.
Elsewhere in Asia, Taiwan is up 2.6 percent, while Singapore, Malaysia and Indonesia are higher by between 0.1 and 0.5 percent each. New Zealand and Hong Kong are down 0.1 and 0.2 percent, respectively. South Korea is closed for National Foundation Day and China is closed for National Day.
On Wall Street, stocks gave back some ground after an early surge but continued to turn in a strong performance throughout the trading session on Friday. The major averages all moved to the upside, adding to the modest gains posted during Thursday's session.
The major averages ended the day well off their highs of the session but still firmly positive. The Nasdaq jumped 319.27 points or 1.2 percent to 27,190.86, the S&P 500 advanced 56.27 points or 0.7 percent to 7,722.72 and the Dow climbed 250.40 points or 0.5 percent to 51,176.96.
The major European markets also moved to the upside on the day. While the German DAX Index jumped by 1.2 percent, the French CAC 40 Index climbed by 0.8 percent and the U.K.'s FTSE 100 Index rose by 0.3 percent.
Crude oil prices tumbled on Friday following reports that the European Union may release diesel reserves to help cool surging fuel prices linked to the Iran war. West Texas Intermediate crude for November delivery was down $1.17 or 1.3 percent to $91.70 per barrel.
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