Asian stock markets, with the exception of Japan, are in positive territory on Monday following the positive lead from Wall Street Friday on optimism that U.S.-China trade talks will resolve their escalating trade dispute. In addition, higher commodity prices boosted resources stocks.
The Australian market is higher following the positive lead from Wall Street Friday and on higher commodity prices. Nevertheless, gains are modest as investors digested mixed corporate earnings results.
In late-morning trades, the benchmark S&P/ASX 200 Index is adding 7.90 points or 0.12 percent to 6,347.10, off a high of 6,358.00. The broader All Ordinaries Index is up 12.70 points or 0.20 percent to 6,438.90.
In the mining space, BHP Billiton and Rio Tinto are adding more than 1 percent each.
Fortescue Metals reported a 58 percent fall in full-year profit, but maintained its full-year production guidance. The miner's shares are gaining almost 2 percent.
Gold miners are also advancing after gold prices edged higher. Newcrest Mining is adding almost 2 percent and Evolution Mining is rising more than 1 percent.
Oil stocks are also mostly higher after crude oil prices rose Friday. Woodside Petroleum is rising almost 2 percent and Santos is up almost 1 percent, while Oil Search is down 0.2 percent.
Banking stocks are mixed. Westpac is down 0.3 percent and Commonwealth Bank is declining 0.5 percent, while National Australia Bank is higher by 0.5 percent and ANZ Banking is edging up 0.1 percent.
NIB Holdings said its full-year profit rose 11 percent, aided by higher revenues and the acquisition of corporate health insurance provider GU Health. However, the health insurer's shares are losing more than 1 percent.
Ansell reported a full-year profit that more than tripled from last year, but projected a mixed outlook for the new financial year. The protective glove maker's shares are losing more than 7 percent.
Eclipx Group has rejected an A$806.6 million takeover offer from peer SG Fleet Group, saying it was inadequate. The fleet manager's shares are gaining more than 15 percent.
Woolworths reported a nearly 13 percent increase in full-year profit, but said that supermarket sales in the new financial year have come under pressure due to the removal of single-use plastic bags. The retail giant's shares are declining more than 1 percent.
In the currency market, the Australian dollar is higher against the U.S. dollar on Monday. The local currency was quoted at US$0.7316, up from US$0.7271 on Friday.
The Japanese market is modestly lower in choppy trade despite the positive lead from Wall Street Friday as a stronger yen dragged exporters' shares lower.
The benchmark Nikkei 225 Index is down 41.61 points or 0.19 percent to 22,228.77, off a low of 22,150.75 earlier.
The major exporters are lower on a stronger yen. Sony, Panasonic, Mitsubishi Electric and Canon are down in a range of 0.5 percent to 1.6 percent.
In the auto space, Honda is lower by 0.2 percent and Toyota is losing 0.6 percent. A Texas jury has ordered Toyota to pay $242.1 million in damages to a Dallas-area couple after a rear-end collision to their Toyota Lexus ES 300 resulted in injuries to their two children.
In the banking sector, Mitsubishi UFJ Financial is down 0.2 percent and Sumitomo Mitsui Financial is declining 0.3 percent.
Among oil stocks, Inpex is rising 0.6 percent, while Japan Petroleum is lower by almost 1 percent after crude oil prices rose Friday.
Among the major gainers, Shiseido Co. is rising more than 2 percent, while Toto and Nippon Paper Industries are advancing almost 2 percent each.
On the flip side, Nikon Corp. is losing almost 3 percent, Yahoo Japan is down 2.5 percent and Sumitomo Metal Mining is declining more than 2 percent.
On the economic front, Japan will provide July data for convenience store sales today.
In the currency market, the U.S. dollar is trading in the mid 110 yen-range on Monday.
Elsewhere in Asia, Indonesia is higher by 1 percent, while Shanghai and Hong Kong are adding almost 1 percent each. South Korea, Singapore, New Zealand, Malaysia and Taiwan are also higher.
On Wall Street, stocks closed higher on Friday, recovering from a weak start. Late-day buying interest was seen after a report from the Wall Street Journal said Chinese and U.S. negotiators are drawing up a road map for talks to try to end their trade impasse. Citing officials in both nations, the Journal indicated the plan would culminate in planned meetings between President Donald Trump and Chinese leader Xi Jinping at multilateral summits in November.
The Dow climbed 110.59 points or 0.4 percent to 25,669.32, the Nasdaq inched up 9.81 points or 0.1 percent to 7,816.33 and the S&P 500 rose 9.44 points or 0.3 percent to 2,850.13.
The major European markets ended mixed on Friday. While the U.K.'s FTSE 100 Index inched up by less than a tenth of a percent, the French CAC 40 Index and the German DAX Index edged down by 0.1 percent and 0.2 percent, respectively.
Crude oil prices rose on Friday. WTI crude for September added $0.45 or 0.7 percent to close at $65.91 a barrel on the New York Mercantile Exchange.
For comments and feedback contact: editorial@rttnews.com
Business News