Asian markets fall after Wall Street recovers to new highs

Beijing (AP) — Asian stock markets fell on Monday after Wall Street hit new highs as investors expected to produce indicators for Japan, China and South Korea.

Shanghai, Tokyo and Seoul have declined. A weather warning has suspended trading in Hong Kong.

On Friday, Wall Street’s S & P 500 Index turned to its largest weekly rise in four months.

Investors have been encouraged by the progress of infrastructure investment programs in Washington. The market has recovered from the Federal Reserve Board’s announcement that the Fed may start raising interest rates sooner than expected.

According to a Mizuho Bank report, rising S & P “generally indicates an improvement in sentiment.”

The Shanghai Composite Index rose less than 0.1% to 3,609.43, while the Nikkei 225 in Tokyo fell 0.3% to 28,984.93.

Seoul’s Kospi fell 0.1% to 3,298.52, and Sydney’s ASX-S & P 500 fell 0.1% to 7,299.00. New Zealand and Jakarta also declined, but Singapore moved forward.

Investors look forward to monthly surveys on manufacturing activities in Japan, China and South Korea.

Production has recovered from last year’s plunge, but is facing a shortage of processor chips and other turmoil.

Between optimism about the economic recovery supported by the rollout of the coronavirus vaccine and fears that the Fed and other central banks may feel pressure to withdraw stimulus to cool rising inflation. It shook.

The Federal Reserve Board believes that US price hikes are temporary and may start raising rates by late 2023, ahead of previous 2024 targets, traders. Surprised. The market sank, but most of the losses recovered.

On Friday, the Commerce Department said one inflation index, which the Fed is closely monitoring, rose 0.4% in May, rising 3.9% in the last 12 months, well above the Fed’s 2% target. I did.

Also on Friday, President Joe Biden and a group of senators agreed on a five-year plan on road, rail and port spending of $ 973 billion.

On Wall Street, the S & P 500 rose 0.3% to 4,280.70. This resulted in the index rising weekly by 2.7%, the largest since February 5.

The Dow Jones Industrial Average rose 0.7% to 34,433.84, and the Nasdaq Composite fell 0.1% to 14,360.39.

In the energy market, electronic trading on the New York Mercantile Exchange dropped benchmark US crude oil by 14 cents to $ 73.91 per barrel. Friday’s deal rose 75 cents to $ 74.05 a barrel. Brent crude, the basis of London’s international oil prices, fell 23 cents to $ 75.15 a barrel. In the last session, it rose 62 cents to $ 76.18.

The dollar fell from 110.84 yen on Friday to 110.69 yen. The euro fell from $ 1.1932 to $ 1.1924.

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