Asian markets are trading mixed for a second consecutive day, after earlier, when the major U.S. indexes closed in the red, halting the global rally that lasted 8 days.
Asian markets lacked a general direction for a second consecutive day, as the global equity market reached a crucial swing point. Investors continue to remain optimistic, but more cautiously this time, as most indexes are trading near, or very close to the highs, of the current year. A bounce higher would extend the rally seen over the last few 8 days of trading, but the market will require very strong momentum to pull off such an important breakout.
During the first part of the Asian session, the Nikkei added only 0.1%, in a time when the S&P futures rose 0.5%. However, the Nikkei started moving stronger ahead of the mid-day break, something that made the index gain 0.9%. In addition, the volume recorded so far in the futures market is very small, even compared to the prior days, something that does not make this up-tick reliable.
In the Japanese Nikkei, the market was split into two equal halves, between gainers and decliners. The best performing sectors were manufacturing and carmakers, which take an important stake of their profits from the foreign markets, on optimism that the global economy is recovering.
Overnight, the Japanese Nikkei added 89.30 points (0.92%) to 9,812.46. The Australian S&P/Asx slipped 6.80 points (0.17%) to 4,061.70
Crude oil for August delivery was recently trading at $65.50 per barrel, up by $0.20.
Gold for August delivery was recently trading higher by $1.00 to $951.80.