Asian stocks rise, US markets decline
Most Asian markets made gains except Shanghai Composite index and South Korea’s Kospi; Nasdaq was trading higher and other markets were lower
Hong Kong: Asia stocks were mostly higher on Tuesday, with investors mainly focusing on a US inflation report and what it means for interest rate cuts by the Federal Reserve. Oil prices advanced while US futures were mixed. The yen weakened, coming close to a 34-year low.
Japan’s benchmark Nikkei 225 gained 1.1 per cent in morning trading to 39,773.13. The yen languished as the US dollar edged up to 151.88 Japanese yen, coming close to a 34-year high of 151.97 yen which it hit in late March. The Hang Seng in Hong Kong rose for a second day, adding 0.7 per cent to 16,856.41, while the Shanghai Composite index slipped 0.2 per cent to 3,041.30. In South Korea, the Kospi lost 0.3 per cent to 2,710.41, and Australia’s S&P/ASX 200 gained 0.4 per cent to 7,822.40.
An update on the US consumer price index is due later Wednesday. “The upbeat sentiment stemming from Friday’s jobs report, where indexes surged following wage-growth data suggesting contained inflationary pressures, has set the stage for a white knuckle event as the forthcoming consumer-price index release looms larger than life,” said Stephen Innes, managing partner at SPI Asset Management.
US stock indexes were at a virtual standstill Monday as trading calmed after a whirlwind couple of days left them a bit shy of their records. The S&P 500 edged down less than 0.1 per cent to 5,202.39. The Dow Jones Industrial Average tiptoed less than 0.1 per cent lower to 38,892.80, while the Nasdaq composite inched 5 points higher to 16,253.96.
A string of reports showing inflation and the economy have remained hotter than expected has led investors to delay forecasts for when relief on rates could arrive. This week has several flashpoints that could further swing expectations.
