FX.co ★ Asian Markets Trading Mixed

Asian stock markets delivered a mixed performance on Tuesday, influenced by a global upswing due to revived optimism regarding interest rate outlooks. Traders are increasingly confident about an upcoming rate cut, dispelling earlier worries that the US Federal Reserve might raise interest rates. The probability of a September rate cut stands at 83.5 percent according to CME Group's FedWatch Tool.

The Australian stock market, in particular, performed well, primarily driven by technology stocks and mining and energy stocks in view of rising commodity prices. The benchmark S&P/ASX 200 Index gained 35.10 points, settling at 7,717.50 after reaching a high of 7,741.80 earlier. The broader All Ordinaries Index also elevated, up by 38.60 points to 7,990.90.

Major miners such as Rio Tinto, Fortescue Metals, Mineral Resources and BHP Group recorded gains of over 1 percent each. Oil stocks including Woodside Energy and Origin Energy also rose, while tech stocks such as WiseTech Global, Xero, Zip, and Block (owner of Afterpay) soared over 1 percent.

On the downside, ANZ Banking lost 1.5 percent, while shares in Sims Metal Management plummeted more than 9 percent following a major profit warning. Meanwhile, shares in HMC Capital increased almost 9 percent after presenting at a Macquarie conference that its operating earnings per share for the 2024 financial year were tracking 21 percent higher at 40 cents.

In financial news, retail sales in Australia fell by a seasonally adjusted 0.4 percent in March, amounting to A$35.663 billion, which was below expected forecasts. In the first quarter of 2024, retail sales volume dipped 0.4 percent after a 0.4 percent rise in the previous quarter. The Reserve Bank of Australia is expected to maintain its benchmark lending rate at 4.35 percent.

The Japanese stock market also rebounded after the holidays, with the Nikkei 225 Index climbing well above the 38,600 level. Market heavyweights SoftBank Group and Uniqlo operator Fast Retailing both elevated by over 3 percent. Despite this, automakers Honda and Toyota slipped marginally, along with major exporters Panasonic and Sony. Notably, Advantest, Tokyo Electron, Screen Holdings, and Canon all enjoyed over 1 percent gain. Fujikura and Disco surged more than 5 percent each, along with Rakuten Group, Nomura Holdings and ZOZO.On the contrary, firms like Mitsubishi, Daiichi Sankyo, and Sumitomo Pharma have each experienced over a 3 percent loss. In economic updates, data reveals that Japan's service sector persisted in its expansion through April, even accelerating its growth pace. Jibun Bank's recent survey indicates a service PMI score of 54.3, a slight increase from March's 54.1. This score travels further beyond the critical 50-point mark, distinguishing between economic expansion and contraction.

In the foreign exchange world, the U.S. dollar is being traded in the lower 154 yen-range this Tuesday. In other parts of Asia, South Korea's economy has grown by 1.9 percent. In contrast, Singapore, Malaysia, and Taiwan have experienced marginal growth between 0.1 to 0.4 percent each. Meanwhile, New Zealand and Hong Kong observed minor declines of 0.3 and 0.5 percent, respectively. China and Indonesia's economic status remains mainly unchanged.

Turning to Wall Street, a significant upward shift in stock trading was observed on Monday, building upon the rally seen closing the prior week. This maintained upswing led the major averages to reach their highest closing levels in almost a month.

As trading concluded, both the Nasdaq and the S&P 500 reported session highs. Specifically, the Nasdaq soared 192.92 points, or 1.2 percent, to 16,349.25. The S&P 500 leaped 52.95 points, or 1.0 percent, to 5,180.74, while the Dow ascended 176.59 points, or 0.5 percent, to 38,862.27.

Major European markets also recorded upward movement. Germany's DAX Index rose by 1.0 percent, while the French CAC 40 Index and the U.K.'s FTSE 100 Index each experienced a 0.5 percent increase.

Lastly, crude oil prices saw a moderate increase on Monday, following Saudi Arabia's decision to raise its selling price for the European and Asian markets. West Texas Intermediate Crude oil futures for June ended higher by $0.37 or 0.47 percent at $78.48 per barrel.