(CT) Asian markets mostly lower amid cautious trades

Asian stock markets are mostly lower on Tuesday with modest losses despite the positive cues overnight from Wall Street and higher crude oil prices. Investors are cautious as they look ahead to monetary policy decisions from central banks later in the week.

The US Federal Reserve’s monetary policy decision is scheduled for Wednesday. The European Central Bank, The Bank of England and the Swiss National Bank are also slated to release their policy decisions this week.
The Australian market is modestly higher following the overnight gains on Wall Street ahead of the US Federal Reserve’s two-day monetary policy meeting. Investors also digested weaker than expected local economic data.

In late-morning trades, the benchmark S&P/ASX 200 Index is adding 7.90 points or 0.13 per cent to 6,006.20, off a high of 6,015.80 earlier. The broader All Ordinaries Index is up 6.40 points or 0.11 per cent to 6,088.30. The major miners are higher, buoyed by stronger-than-expected Chinese exports and a rebound in Australia›s credit growth. BHP Billiton and Rio Tinto are adding more than 1 per cent each, while Fortescue Metals is rising 0.4 per cent.
Oil stocks are also gaining after crude oil prices rose overnight. Oil Search is rising more than 1 per cent, Woodside Petroleum is advancing 1 per cent and Santos is adding 0.6 per cent.

The big four banks are also mostly higher. National Australia Bank is rising 0.4 per cent and Commonwealth Bank is adding 0.3 per cent, while Westpac is down 0.2 per cent.

ANZ Banking has agreed to sell its life and consumer credit insurance businessOnePath Life to insurance giant Zurich Insurance for A$2.85 billion. The bank’s shares are adding almost 1 per cent.
Meanwhile, gold miners are weak after gold prices drifted lower overnight. Newcrest Mining is losing almost 2 per cent and Evolution Mining is down 0.6 per cent.
CIMIC Group said it has secured three new major contracts for its companies, including the design and construction of Victoria’s West Gate Tunnel project. The construction giant’s shares are losing 1 per cent.
Transurban said it will raise A$1.9 billion through an equity raising to part-fund the cost of the West Gate Tunnel project in Melbourne. The toll road operator’s shares are in a trading halt until completion of the industrial component of the capital raising on December 15.
Shares of shopping center giant Westfield Corp. are also in a trading halt until December 14, pending the announcement of a ‘significant’ corporate transaction.

On the economic front, the latest survey from National Australia Bank revealed that consumer confidence in Australia slowed in November, with an index score of +6. That’s down from the upwardly revised +9 in October. The Australian Bureau of Statistics said that residential property prices in Australia were down 0.2 per cent on quarter in the third quarter of 2017. That missed forecasts for a gain of 0.5 per cent following the 1.9 per cent jump in the previous three months. In the currency market, the Australian dollar is rising against the US dollar on Tuesday. In early trades, the local unit was quoted at US$0.7531, up from $0.7525 on Monday.
The Japanese market is edging higher in choppy trade following the positive lead overnight from Wall Street and a slightly weaker yen. Investors are cautious ahead of the US Federal Reserve’s monetary policy decision due on Wednesday.

In late-morning trades, the benchmark Nikkei 225 Index is adding 13.58 points or 0.06 per cent to 22,952.31, off a high of 22,994.33 earlier. The major exporters are higher on a slightly weaker yen. Panasonic is advancing almost 1 per cent, Canon is higher by 0.6 per cent, Sony is adding 0.4 per cent and Mitsubishi Electric is rising 0.3 per cent.

In the banking sector, Mitsubishi UFJ Financial is adding more than 1 per cent, and Sumitomo Mitsui Financial is advancing almost 2 per cent. Among automakers, Toyota is down 0.2 per cent, while Honda is rising almost 1 per cent.
In the oil space, Inpex is adding more than 2 per cent and Japan Petroleum is higher by more than 1 per cent.
Among the market’s best performers, Sumco Corp, Toho Zinc and Concordia Financial Group are rising more than 2 per cent each.
On the flip side, Ajinomoto Co. and Sumitomo Osaka Cement are declining more than 2 per cent each.

In economic news, the Bank of Japan said that producer prices in Japan were up 0.4 per cent on month in November. That exceeded forecasts for a gain of 0.2 per cent and was up from 0.3 per cent in October.
Japan will also see October results for its tertiary industry index today.

In the currency market, the US dollar is trading in the mid 113 yen-range on Tuesday.
Elsewhere in Asia, Hong Kong and Malaysia are also edging higher. Shanghai, Singapore, South Korea, New Zealand, Indonesia and Taiwan are all modestly lower.
On Wall Street, stocks closed higher on Monday, though traders seemed somewhat reluctant to make significant moves ahead of the Federal Reserve’s monetary policy announcement on Wednesday.

With the Fed widely expected to raise interest rates by a quarter point, traders are likely to keep a close eye on the accompanying statement as well as outgoing Fed Chair Janet Yellen’s press conference for clues about the outlook for future rate hikes.
The Dow rose 56.87 points or 0.2 per cent to 24,386.03, the Nasdaq advanced 35.00 points or 0.5 per cent to 6,875.08 and the S&P 500 climbed 8.49 points or 0.3 per cent to 2,659.99.

The major European markets turned a mixed performance on Monday. While the U.K.’s FTSE 100 Index advanced by 0.8 per cent, the French CAC 40 Index and the German DAX Index both fell by 0.2 per cent.
Crude oil prices rose Monday, touching their highest in a week. WTI crude for January delivery climbed $0.63 or 1.1 per cent to $57.99 a barrel on the New York Mercantile Exchange.

 

Source: Ceylon Today

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