Asian stock markets mixed after Wall Street hits record
BEIJING (AP) – Asian stock markets were mixed on Tuesday as investors eagerly awaited a report from the Federal Reserve for an update on when US stimulus might start to slow.
Tokyo and South Korea advanced as Hong Kong retreated and Shanghai wavered between gains and losses.
On Monday, Wall Street’s benchmark S&P 500 hit a new high, ignoring concerns about the spread of the more contagious delta variant of the coronavirus.
Investors were awaiting the Fed’s report on Wednesday for signs of the central bank’s level of concern over inflation and when it might start cutting easy credit and other economic stimulus. The minutes of the Fed’s June meeting showed that board members discussed how and when they could cut monthly bond purchases that pump money into the financial system. .
“We expect Jay Powell to reiterate that the reduction discussion is ongoing, but that it is too early to reveal a specific date,” Quill Intelligence’s Danielle DiMartino Booth said in a report.
The Shanghai Composite Index was down 0.2% by noon to 3,461.03 after spending much of the morning in positive territory. The Nikkei 225 in Tokyo rose 0.5% to 27,969.76 while the Hang Seng in Hong Kong lost 2% to 25,647.68.
Seoul’s Kospi rose 0.2 percent to 3,232.35, after economic growth moderated 0.7 percent from the previous quarter in the three months ending June, down from to 1.7% of the previous quarter.
The Australian S & P-ASX 200 rose 0.5% to 7,429.90 and the Indian Sensex opened 0.1% to 52,912.28. New Zealand, Bangkok and Jakarta, Indonesia fell while Singapore advanced.
On Wall Street, the S&P 500 rose 0.2% to 4,422.30. The Dow Jones Industrial Average gained or 0.2% to 35,144.31. The Nasdaq composite added less than 0.1% at 14,840.71.
Cruise lines, hotels and retailers were among the winners. Carnival was up 5.5%, Caesars Entertainment added 3.3% and Gap was up 3%. Among stocks that lost ground: drugmaker Moderna fell 3.7% and chipmaker Nvidia fell 1.4%.
U.S.-traded shares in Chinese companies sank after Beijing announced additional enforcement actions on for-profit tech, real estate and education companies. Chinese authorities say they must protect public safety and financial stability, limit soaring housing costs and promote social welfare. But their abrupt orders shook investor confidence.
China’s Ministry of Industry has announced a 6-month campaign to clean up what it says are serious problems with Internet applications violating consumer rights, cybersecurity and “disrupting market order.” Internet giant Tencent lost 10% following a weekend order from regulators to end exclusive contracts with music copyright holders they said were damaging the market. competetion.
““ A sobering message may be, ‘You can remove the China company listing, but you cannot remove China (the risks) from the company, ”” Mizuho Bank said in a report. ” If not resolved, it could ultimately hurt the ability of Chinese companies to raise global capital, a serious obstacle to Beijing’s aspirations to become world champions. ”
US traders are looking for earnings reports from more large companies this week. Google’s parent Alphabet reported on Tuesday. Apple and Microsoft too. Pfizer and Boeing report Wednesday.
Electric vehicle company Lucid Motors, now dubbed Lucid Group, rose 10.6% when it debuted on the stock exchange after being bought out by blank check firm Churchill Capital Corp.
In energy markets, benchmark US crude gained 26 cents to $ 72.17 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 16 cents to $ 71.91 on Monday. Brent crude, used to set the price of international oils, rose 29 cents to $ 73.99 a barrel in London. It rose 40 cents the previous session to $ 74.50.
The dollar fell to 110.22 yen from 110.39 yen on Monday. The euro edged up to $ 1.1802 from $ 1.1800.