World shares mixed after a retreat on Wall Street

Yields for longer-term Treasurys rose in the bond market, part of a worldwide climb for yields. When bonds are paying higher yields, they can attract investors who would otherwise buy stocks or cryptocurrencies. Higher yields undercut prices for all kinds of investments, particularly those seen as the most expensive

World shares were mixed on Tuesday after US stocks gave back some of last week’s rally, pressured by rising global bond yields.

The future for the S&P 500 rose 0.2 per cent while that for the Dow Jones Industrial Average was up 0.1 per cent. In Germany, the DAX advanced 0.7 per cent to 23,748.88, while the CAC 40 in Paris added 0.4 per cent to 8,126.11. Britain’s FTSE 100 was also up 0.4 per cent, at 9,737.80.

In Asian trading, Tokyo’s Nikkei 225 ended flat at 49,303.45, with financial shares the biggest gainers after the governor of the central bank hinted at a possible hike in interest rates this month. In Hong Kong, the Hang Seng added 0.2 per cent to 26,095.05, while the Shanghai Composite index slipped 0.7 per cent to 3,897.71. Australia’s S&P/ASX 200 added 0.2 per cent to 8,579.70.

The Kospi in South Korea jumped 1.9 per cent to 3,994.93, led by buying of technology shares like Samsung Electronics, which surged 2.6 per cent. Chip maker SK Hynix leapt 3.7 per cent. Taiwan’s benchmark Taiex climbed 0.8 per cent.

On Monday, the S&P 500 slipped 0.5 per cent and broke a five-day winning streak. The Dow industrials dropped 0.9 per cent, and the Nasdaq composite dipped 0.4 per cent. Last week’s rally was largely due to rising hopes that the Federal Reserve will cut its main interest rate next week to help shore up the slowing job market.

Jobs are under pressure at US manufacturers, and the majority in a survey by the Institute for Supply Management said they’re still focused more on managing headcount than on hiring. Several manufacturers also said tariffs are continuing to make things complicated. “Conditions are more trying than during the coronavirus pandemic in terms of supply chain uncertainty,” one manufacturer told the ISM.

Yields for longer-term Treasurys rose in the bond market, part of a worldwide climb for yields after Bank of Japan Gov. Kazuo Ueda indicated the central bank may raise its benchmark rate at its meeting later this month.