Asian stocks mixed after a slow slump on Wall Street


Stock prices in Asia on Tuesday were mixed after a sharp fall in Wall Street’s key indices.

Tokyo was closed due to a Tuesday holiday. Hong Kong and Seoul have declined, but Shanghai has moved forward.

Market officials seemed relieved to learn that President Joe Biden would nominate Jerome Powell for his second term under the direction of the Federal Reserve Board. Pandemic.

Hong Kong’s Hang Seng Index fell 1% to 24,705.41 and Seoul’s Kospi fell 0.4% to 3,001.07. In Sydney, the S & P / ASX 200 rose 0.6% to 7,397.80 and the Shanghai Composite Index rose 0.3% to 3,592.07.

Investors are closely watching the Fed to see if rising inflationary pressures will accelerate plans to reduce bond purchases and raise benchmark rates.

Brad McMillan, Chief Investment Officer of the Commonwealth Financial Network, said: “Overall, the Fed will continue to be a force for financial stability.”

Still, the surge in late afternoon sales has upset the market from another record high on Monday.

The S & P 500 fell 0.3% to 4,682.94. The Dow rose by less than 0.1% to 35,619.25. High-tech heavy Nasdaq gave up 1.3% to 15,854.76.

Small business stocks also fell. The Russell 2000 Index fell 0.5% to 2,331.35.

Bond yields rose steadily due to mass sales. Yields on 10-year government bonds rose from 1.54 percent late Friday to 1.63 percent.

Higher Treasury yields make more expensive areas of the market, such as technology stocks, less attractive. This may explain why stock sales increased at the end of the day as the bond market shifted.

With rising inflation on a recovery from the pandemic, the Federal Reserve has begun to reduce bond purchases that helped maintain low interest rates to support the economy and markets.

More than 55% of the S & P 500’s share price rose on Monday, but losses from major tech and telecommunications companies outpaced the rise elsewhere in the Benchmark Index. Chip maker Nvidia fell 3.1% and Netflix fell 2.9%.

Energy companies soared as US crude oil prices rose 0.9%.

On Tuesday, US benchmark crude fell 50 cents to $ 76.25 a barrel in electronic trading on the New York Mercantile Exchange.

Brent crude, the international price standard, gave up 35 cents to $ 79.35 a barrel.

The US dollar rose from 114.88 yen late Monday to 115.08 yen. The euro rose from $ 1.1237 to $ 1.1239.

The US market will close on Thursday due to Thanksgiving holidays. It also closes early on Friday.

By Elaine Kurtenbach

Associated Press