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Asian stock markets are trading mostly higher on Monday, following the broadly positive cues from Wall Street on Friday, as traders remained optimistic the US Fed will slow the pace of interest rate hikes in the coming months. Technology stocks boosted the markets following solid earnings news from some of their peers on Nasdaq. Asian markets closed mostly lower on Friday.

A US Commerce Department report showing core consumer price growth accelerated less than expected in September may encourage the Fed to slow the pace of its interest rate hikes. The Fed’s monetary policy decision is likely to be in the spotlight later in the week and the accompanying statements will likely provide more clues about the pace of tightening in the upcoming months.

Although the Fed is expected to raise interest rates by 75 basis points in November, the possibility of a 50 basis point move at the subsequent meeting has risen

The Australian stock market is significantly higher on Monday, recouping the losses in the previous session, with the benchmark S&P/ASX 200 moving above the 6,800 level, following the broadly positive cues from Wall Street on Friday, with strong gains in technology stocks, which mirrored their peers on Nasdaq amid solid earnings news among technology firms.

Traders are also looking ahead to the Reserve Bank of Australia’s policy decision on Tuesday, where the RBA is expected to maintain plans to deliver smaller rate hikes despite persistent inflationary pressures, with inflation at a three-decade high.

The benchmark S&P/ASX 200 Index is gaining 55.60 points or 0.82 percent to 6,841.30, after touching a high of 6,869.20 earlier. The broader All Ordinaries Index is up 59.60 points or 0.86 percent to 7,033.10. Australian stocks closed significantly lower on Friday.

Among the major miners, Rio Tinto is edging down 0.3 percent, while BHP Group and OZ Minerals are losing almost 1 percent each. Fortescue Metals is gaining almost 1 percent and Mineral Resources is advancing almost 2 percent.

Oil stocks are mostly higher. Beach energy is gaining almost 1 percent and Origin Energy is advancing more than 3 percent, while Woodside Energy and Santos is edging down 0.1 to 0.3 percent each.

Among tech stocks, Afterpay owner Block is gaining almost 4 percent, WiseTech Global is adding more than 3 percent and Xero is advancing more than 4 percent, while Appen is edging down 0.4 percent and Zip is flat.

Gold miners are weak. Gold Road Resources is losing more than 1 percent, Newcrest Mining is declining more than 2 percent, Northern Star Resources is down almost 1 percent and Resolute Mining is slipping almost 4 percent, while Evolution Mining is edging up 0.5 percent.

 

The Wire

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