ASX up 0.36 per cent at lunch despite negative lead from Wall Street

Local markets are surprisingly trading in the green this morning, despite US stocks declining overnight. The sectors are mixed, with the uptick led by Materials and Energy weighing down the index. Energy stocks snapped their five-session gaining streak, after oil prices fell by nearly 2 per cent overnight. This morning’s session has seen Woodside Energy (ASX:WDS) fall by nearly 1 per cent and Santos (ASX:STO) down by 0.3 per cent.

At noon, the S&P/ASX 200 is 0.36 per cent or 23.70 points higher at 6691.50.

The SPI futures are pointing to a rise of 8 points.

Best and worst performers

The best-performing sector is Materials, up 1.17 per cent. The worst-performing sector is Energy, down 1.09 per cent.

The best-performing stock in the S&P/ASX 200 is Core Lithium (ASX:CXO), trading 5.70 per cent higher at $1.21. It is followed by shares in Johns Lyng Group (ASX:JLG) and Lynas Rare Earths (ASX:LYC).

The worst-performing stock in the S&P/ASX 200 is Megaport (ASX:MP1), trading 6.72 per cent lower at $7.22. It is followed by shares in Sandfire Resources (ASX:SFR) and Super Retail Group (ASX:SUL).

Asian markets

Shares in Asia-Pacific are mixed in Tuesday’s morning trading as investors weigh the impact of monetary policy and economic uncertainty.

Japan and South Korea’s markets resumed trading after a holiday on Monday. The Nikkei 225 has dropped around 2 per cent in early trade and the Topix has so far lost 1.4 per cent. In South Korea, the Kospi has fallen 2.3 per cent and the Kosdaq has already shed 3 per cent.

Taiwan and Malaysia markets returned to trade this morning following a holiday Monday.

MSCI’s broadest index of Asia-Pacific shares has dipped 0.36 per cent this morning.

Macro headlines

Australia’s consumer confidence fell further in October and is hovering around historic lows as the Reserve Bank’s sharpest interest-rate increases in a generation takes a toll on households. The index of consumer sentiment slid 0.9 per cent to 83.7, Westpac Banking Corp said in a statement Tuesday. The reading highlighted that pessimists greatly outnumber optimists, with the dividing line at 100 (Bloomberg).

A gauge of Australian household spending dropped for the first time since April as the Reserve Bank’s sharpest policy tightening cycle in a generation begins to cool demand. In a statement released on Tuesday, Commonwealth Bank of Australia mentioned that the Household Spending Intentions Index declined 0.5 per cent in the month of September, with health and fitness, home buying and household services and transport falling the most (Bloomberg).

Japan current account remains under pressure from imports

The Japanese current account balance came in at a JPY58.9 billion surplus in August, compared to expectations of a JPY56.7 billion deficit, and follows JPY229.0 billion surplus in the previous month. The seasonally adjusted series showed some sequential improvement, though remained in deficit for two straight months. Surging imports are the key drag as reported previously in customs trade data, driven by triple digit growth in nominal fossil fuels, outweighing steadier moderate increases in exports. The attention on balance of payments has grown as part of yen dynamics and press have noted views that trend deficits stand as a fundamental headwind. The monthly breakdown showed Japanese investors were large JPY2,777.6 billion net sellers of overseas bonds, though dwarfed by foreigner net sales of bonds (JPY6,389.2 billion) as well as equities (JPY2,996.3 billion). Domestic banks and life insurers were the main drivers behind overseas withdrawal, followed by investment trusts.

Company news

New World Resources (ASX:NWC) today announced their most successful drill results from their 100 per cent owned Antler Copper Deposit in Arizona, USA. These results increase the South Shoot to more than 900m, with the mineralisation remaining completely open at depth. In response, CEO and Managing Director Mike Haynes stated: “Over the past two years we have drilled some cracking holes at Antler. On a grade thickness basis, this is the best yet!” Shares are trading up 9.7 per cent to 3 cents.

Drill core assay results at Kuniko (ASX:KNI) reinforce the opportunity and provide growing confidence for a large-scale Cobalt and Copper deposit at Skuterud. The results confirm significant cobalt mineralisation along with presence of copper. CEO Antony Beckmand commented: “Our exploration work at Skuterud continues to consistently deliver great results”. Shares are trading 11 per cent higher at 78 cents.

Kore Potash (ASX:KP2) has provided a construction contract and financing update for their Kola Potash project. The company stated that the Summit Consortium remains committed to the financing of Kola, and are currently awaiting Kore and SEPCO to finalise the EPC contract terms prior to presenting its financing proposal for the full construction cost of Kola. Shares are trading 13 percent higher at 2 cents.

Dundas Minerals (ASX:DUN) has announced the successful intercept of extensive zones of massive, semimassive, highly disseminated and disseminated sulphides in the first drill hole at its Central exploration target. Commenting on the results, Dundas Minerals Managing Director Shane Volk said: “We now very much look forward to receiving the assay results from Hole 1 and to the drilling of our second hole at Central, given the results from Hole 1, we’d expect to intercept sulphides again in Hole 2”. Shares have added 66 percent to $1.16.

Commodities and the dollar

Gold is trading at US$1671.50 an ounce.
Iron ore is 3.1 per cent higher at US$98.75 a tonne.
Iron ore futures are pointing to a rise of 0.06 per cent.
One Australian dollar is buying 63.00 US cents.