20th May 2016 05:19
CANBERA (Alliance News) - Asian stock markets are mostly higher on Friday, shrugging off the weak cues overnight from Wall Street and European markets amid persistent concerns over the outlook for US interest rates. Meanwhile, crude oil and gold prices rose in Asian trades, while the US dollar weakened against some Asian currencies.
The Australian market is modestly higher, led by mining and oil stocks, despite the weak cues overnight from Wall Street and lower commodity prices. Merger and acquisition news from the oil sector lifted investor sentiment.
In late-morning trades, the benchmark S&P/ASX 200 Index is adding 7.60 points or 0.14% to 5,330.90, off a high of 5,338.50 earlier. The broader All Ordinaries Index is up 8.70 points or 0.16% to 5,394.30.
In the mining sector, BHP Billiton is advancing more than 1%, Rio Tinto is higher by almost 2% and Fortescue Metals is adding almost 1%.
In the oil space, Oil Search is gaining more than 4%, while Santos and Woodside Petroleum are gaining almost 2% each.
Oil Search said it plans to buy Papua New Guinea-focused InterOil for USD2.2 billion to boost its liquified natural gas development. The InterOil board has unanimously recommended that its shareholders approve the deal.
Woodside Petroleum has raised its estimates for its two gas discoveries off Myanmar.
Meanwhile, gold miner Newcrest Mining is down 0.5%, while Evolution Mining is rising almost 1% after gold prices fell more than 1% overnight.
The big four banks are mixed. ANZ Bank is adding 0.6% and Commonwealth Bank is edging up 0.04%, while National Australia Bank is declining 0.6% and Westpac is down 0.08%.
Myer Holdings will close two department stores in New South Wales as part of chief executive Richard Umbers' turnaround plan. The retailer's shares are adding 0.2%.
In the currency market, the Australian dollar is virtually unchanged against the US dollar on Friday amid increased expectations of a US interest rate hike. In early trades, the local unit was trading at USD0.7226, up slightly from USD0.7221 on Thursday.
The Japanese market is rising in choppy trades, after opening in negative territory following the weak cues overnight from Wall Street and European markets. The yen too strengthened slightly against the US dollar.
In late-morning trades, the benchmark Nikkei 225 Index is advancing 25.05 points or 0.15% to 16,671.71, after falling to 16,548.34 in early trades.
Exporters are mixed on the back of a stronger yen. Sony is adding 0.8% and Canon is up 0.4%, while Panasonic is down 0.4% and Toshiba is edging down 0.04%. Market heavyweight Fast Retailing is adding 0.2%.
Among the major automakers, Toyota is rising 0.3%, while Honda is declining 0.6%.
In the banking space, Mitsubishi UFJ Financial is down 0.2%. In the oil sector, Inpex is losing.0.7% and JX Holdings is lower by 0.6%.
Among the other major gainers, Yamaha Corp. is rising more than 4%, while Alps Electric and Tokuyama Corp. are gaining almost 4% each. Meanwhile, Pioneer Corp. is losing more than 5% and NSK is down almost 4%.
On the economic front, Japan will see April data for department and convenience store sales today.
In the currency market, the US dollar traded in the upper 109 yen-level on Friday, down from Thursday's close in the lower 110 yen level in Tokyo.
Elsewhere in Asia, Shanghai, South Korea, Hong Kong, Singapore, Malaysia and Taiwan are in positive territory. Indonesia and New Zealand are edging lower.
On Wall Street, stocks regained some ground, but still closed in the red on Thursday, reflecting renewed concerns about the outlook for interest rates following Wednesday's release of the minutes of the Federal Reserve's latest monetary policy meeting.
The Dow fell 91.22 points or 0.5% to 17,435.40, the Nasdaq slid 26.59 points or 0.6% to 4,712.53 and the S&P 500 dropped 7.59 points or 0.4% at 2,040.04.
The major European markets also showed notable moves to the downside on Thursday. While the French CAC 40 Index slid by 0.9%, the German DAX Index tumbled by 1.5% and the UK's FTSE 100 Index plunged by 1.8%.
Crude oil futures edged lower on Thursday, unable to extend this week's seven-month highs. June WTI oil settled at USD48.16 per barrel on the New York Mercantile Exchange, down 3 cents.
Copyright RTT News/dpa-AFX