Asian stock markets are mostly trading marginally lower on Tuesday after positive starts and are range bound as investors remain cautious amid hopes of fresh stimulus measures by the U.S. Federal Reserve and the European Central Bank. The overnight mixed close on Wall Street did not provide any cue for the markets.
Stocks may meander around until Friday's Jackson Hole address by the chiefs of major global central banks.
Traders already are looking ahead to remarks by Federal Reserve Chairman Ben Bernanke at the Kansas City Federal Reserve's annual Jackson Hole symposium, along with European Central Bank President Mario Draghi and International Monetary Fund President Christine Lagarde.
Bernanke had indicated in a letter on Friday to Rep. Darrell Issa, R-Calif. that there is "scope for further action by the Federal Reserve to ease financial conditions and strengthen the recovery."
The Australian market is trading flat amid cautious trading by investors ahead of hopes of fresh economic measures in the world market.
In early morning trades, the benchmark S&P/ASX 200 index, which declined to around 4,340, is currently trading at 4,342.6, down 1.1 points or 0.0 percent from its previous close. The broader All Ordinaries index is down 1.5 points or 0.0 percent at 4,371.4.
Mining and energy stocks are the prominent losers in the Australian market, while consumer discretionary, financial and industrial stocks are trading marginally higher.
In the mining space, BHP Billiton (BHP, BBL) is losing 0.7 percent, Rio Tinto (RIO, RIO.L) is falling 1.4 percent and Fortescue is lower by 1.1 percent.
Shares in Origin Energy are down following the death of two workers yesterday on an offshore drilling rig, the Stena Clyde, which is operated by Stena Offshore of Scotland.
Media and earthmoving machinery company Seven Group Holdings has more than doubled its full-year profit to $165.9 million from $70.4 million last year. Revenues rose 41 percent to $4.46 billion from the previous year. Seven is up more than 5 percent.
Shares in Virgin Australia have fallen more than 4 percent in early deals after the country's second largest airline returned to profit as revenue jumped nearly five-fold, boosted by its market share growth in the lucrative business travel market.
In economic news, the total number of new home sales in Australia was down 5.6 percent on month in July, the Housing Industry Association said on Tuesday, falling for the first time in four months. Sales were up 2.8 percent on month in June.
In the currency market, the Australian dollar fell to a one-month low against the US Dollar. In early trades, the local unit was trading at US$1.0358, down from US$1.0385 on Friday.
After a moderately positive start, the Japanese market is trading marginally lower as the dollar weakened against the Yen and concerns over China's economic growth. The market is meandering due to the lack of major trading cues from the domestic or international markets.
The benchmark Nikkei 225 Index, which opened higher by 0.58 percent, is currently trading at 9,060.07, down 25.32 points or 0.28 percent.
Electricity and gas, mining and nonferrous metals sectors were the major decliners, while consumer finance, foods, and fishery and forestry sectors led the gainers.
Sharp Corp. continued to gain for the sixth straight day as talks on a tie-up with Taiwan's Hon Hai Precision Industry Co. is expected to make progress. Sharp is up 6.5 percent.
In the currency market, the U.S. dollar is trading in the upper 78 yen range on Tuesday. In late morning trades, the dollar was quoted in a range of 78.53-78.56 yen, up 0.13 yen from Monday's close of 78.66-78.67 yen in Tokyo.
Among other markets in the Asia, Hong Kong, New Zealand, Singapore, South Korea, and Taiwan are trading marginally lower, while Shanghai, Malaysia, New Zealand and Indonesia are trading marginally higher.
Among other markets in the Asia, Shanghai, Malaysia, Hong Kong, South Korea, and Indonesia are trading marginally lower and Taiwan is down a percent, while New Zealand and Singapore are trading marginally higher.
On Wall Street, stocks showed a lack of direction throughout the trading day on Monday, with traders reluctant to make significant moves amid lack of major U.S. economic data. The choppy trading on Wall Street came as traders looked ahead to remarks by Federal Reserve Chairman Ben Bernanke.
The major averages eventually ended the session mixed, with the Nasdaq posting a modest gain. While the Nasdaq inched up 3.40 points or 0.1 percent to 3,073.19, the Dow fell 33.30 points or 0.3 percent to 13,124.67 and the S&P 500 edged down 0.69 points or 0.1 percent at 1,410.44.
In the European market, the major averages moved notably higher over the course of the trading day. The French CAC 40 Index advanced by 0.9 percent, while the German DAX Index surged up by 1.1 percent. The U.K. market was closed for a public holiday.
The Global Gold Index dropped 1.47 percent, although gold futures for December delivery gained $2.70 to close at $1,675.60 an ounce Monday on the New York Mercantile Exchange.
U.S. Crude oil ended lower Monday, as worries over supply disruptions eased amid speculation that Tropical Storm Isaac will have little impact on production in the oil-rich U.S. Gulf of Mexico region.
Crude for October delivery edged down $0.68 or 0.07 percent to close at $95.47 a barrel on the New York Mercantile Exchange.
by RTT Staff Writer
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