Asian stock are trading mostly higher on Monday, following the broadly positive cues from global markets on Friday, amid easing worries about a banking crisis, and data showing an unexpected slowdown in the annual rate of core consumer price growth in the U.S. Asian markets closed mostly higher Friday.
With this US inflation reading said to be preferred by the US Fed, the data led to some optimism the central bank will hold off on raising interest rates at its next meeting in early May.
The Fed recently signaled that it expects just one more rate increase this year, leaving traders looking for clues about the timing of the final rate hike.
The Australian stock market is significantly higher on Monday, extending the gains in the previous five sessions, with the benchmark S&P/ASX 200 moving above the 7,200 level, following the broadly positive cues from global markets on Friday, with gains in energy stocks amid a spike in crude oil prices.
Easing worries about a banking crisis, and data showing an unexpected slowdown in the annual rate of core consumer price growth in the U.S. also lifted market sentiment.
The benchmark S&P/ASX 200 Index is gaining 52.50 points or 0.73 percent to 7,230.30, after touching a high of 7,246.10 earlier. The broader All Ordinaries Index is up 51.30 points or 0.70 percent to 7,424.60. Australian stocks closed significantly higher on Friday.
Among the major miners, Rio Tinto and BHP Group is edging up 0.2 to 0.3 percent each, while Mineral Resources is losing more than 1 percent and Fortescue Metals is down almost 1 percent. OZ Minerals is flat.
Oil stocks are mostly higher. Woodside Energy is surging almost 5 percent, Santos is gaining more than 4 percent and Beach energy is advancing more than 5 percent, while Origin Energy is edging down 0.5 percent.
Among tech stocks, WiseTech Global and Xero are gaining more than 2 percent each, while Appen is adding more than 1 percent and Zip is advancing almost 4 percent. Afterpay owner Block is losing almost 1 percent.
Gold miners are mostly lower. Gold Road Resources is losing 1.5 percent, while Evolution Mining, Northern Star Resources and Newcrest Mining are down almost 1 percent each. Resolute Mining is edging up 0.5 percent.
Among the big four banks, Commonwealth Bank, Westpac and ANZ Banking are gaining more than 1 percent each, while National Australia Bank is up almost 1 percent.
In economic news, the manufacturing sector in Australia slipped into contraction territory in March, the latest survey from Judo Bank revealed on Monday with a manufacturing PMI core of 49.1. That's down from 50.5 in February, and it moves beneath the boom-or-bust line of 50 that separates expansion from contraction.
The latest survey from Jibun Bank revealed on Monday that the manufacturing sector in Japan continued to contract in March, albeit at a slower pace, with a manufacturing PMI score of 49.2. That's up from 47.7 in February, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction.
The total number of building approvals issued in Australia was up a seasonally adjusted 4.0 percent on month in February, the Australian Bureau of Statistics said on Monday - coming in at 12,661. That follows the 27.1 percent decline in January.
On a yearly basis, overall building approvals tumbled 31.1 percent, approvals for houses sank 13.6 percent and approvals for other than houses plummeted 45.7 percent. The seasonally adjusted estimate for the value of total building approved rose 19.7 percent in February, following a 19.2 percent fall in January.
In the currency market, the Aussie dollar is trading at $0.667 on Monday.
The Japanese stock market is notably higher on Monday, extending the gains in the previous session, with the Nikkei 225 moving above the 28,100 level, following the positive cues from global markets on Friday, with gains in exporters and financial stocks partially offset by weakness in technology stocks.
The benchmark Nikkei 225 Index closed the morning session at 28,149.89, up 108.41 or 0.39 percent, after touching a high of 27,258.91 earlier. Japanese shares ended significantly higher on Friday.
Market heavyweight SoftBank Group is gaining more than 1 percent and Uniqlo operator Fast Retailing is adding almost 3 percent. Among automakers, Honda is gaining more than 1 percent and Toyota is edging up 0.3 percent.
In the tech space, Screen Holdings is losing almost 2 percent, Advantest is declining more than 3 percent and Tokyo Electron is down more than 2 percent.
In the banking sector, Sumitomo Mitsui Financial and Mizuho Financial are gaining more than 1 percent each, while Mitsubishi UFJ Financial is adding almost 1 percent.
The major exporters are higher. Mitsubishi Electric, Sony and Canon are edging up 0.1 to 0.3 percent each, while Panasonic is gaining more than 2 percent.
Among the other major gainers, JGC Holdings is surging more than 6 percent, Inpex is gaining almost 6 percent and Idemitsu Kosan is adding more than 4 percent, while Nippon Sheet Glass, M3 and ENEOS Holdings are up almost 4 percent each. UBE Corp., Z Holdings and Concordia Financial are rising more than 3 percent each, while Sumitomo Chemical, Yokogawa Electric, Olympus, Chiba Bank and Fukuoka Financial are all advancing almost 3 percent.
Conversely, Advantest is losing almost 3 percent.
In economic news, large manufacturing in Japan weakened in the first quarter of 2023, the Bank of Japan's quarterly Tankan Survey of business sentiment showed on Monday with a diffusion index score of +1. That missed forecasts for a reading of +3 and was down from +7 three months ago. The outlook came in at +3, missing expectations for +4 and down from +6 in the previous quarter.
In the currency market, the U.S. dollar is trading in the lower 133 yen-range on Monday.
Elsewhere in Asia, Singapore is up 0.8 percent, while China, Malaysia and Indonesia are higher by between 0.2 and 0.4 percent each. New Zealand is down 0.2 percent. Hong Kong and South Korea are relatively flat. Taiwan is closed for Children's Day holiday.
On Wall Street, stocks moved sharply higher over the course of the trading session on Friday, adding to the gains posted on Wednesday and Thursday. The tech-heavy Nasdaq showed a particularly strong upward move, reaching a six-month closing high.
The major averages saw further upside going into the close of trading, reaching new highs for the session. The Nasdaq surged 208.44 points or 1.7 percent to 12,221.91, the S&P 500 shot up 58.48 points or 1.4 percent to 4,109.31 and the Dow jumped 415.12 points or 1.3 percent at 33,274.15.
The major European markets also moved to the upside on the day. While the French CAC 40 Index advanced by 0.8 percent, the German DAX Index climbed by 0.7 percent and the U.K.'s FTSE 100 Index edged up by 0.2 percent.
Crude oil prices climbed higher Friday on falling supplies and optimism about the outlook for energy demand. West Texas Intermediate Crude oil futures for May ended higher by $1.30 or 1.8 percent at $75.67 a barrel. WTI crude futures gained 9.2 percent in the week but dropped 1.8 percent in March and 6 percent in the first quarter.
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