Asian Stocks Mixed After Late Slump on Wall Street
Asian shares were mixed Tuesday after a tardy drop left major Wall Street indexes mostly lower. Tokyo was closed Tuesday for a holiday. Hong Kong and Seoul declined while Shanghai advanced. Market players appeared to be palliated to learn that President Joe Biden will nominate Jerome Powell for a second four-year term at the helm of the Federal Reserve, a vote of confidence in Powell’s handling of central bank policies during the brutal disruptions caused by the coronavirus pandemic.
Hong Kong’s Hang Seng fell 1 percent to 24,705.41 and the Kospi in Seoul lost 0.4 percent to 3,001.07. In Sydney, the S&P/ASX 200 climbed 0.6 percent to 7,397.80 and the Shanghai Composite index integrated 0.3 percent to 3,592.07.
Investors are proximately optically canvassing the Fed to optically discern whether pressure from ascending inflation prompts it to expedite its plans for trimming bond purchases and raising its benchmark interest rate.
Powell getting the nod is a denotement that Biden is staying the course on monetary policy and the Fed is steadily moving toward normalizing policy, verbally expressed Brad McMillan, chief investment officer for Commonwealth Financial Network.
On the whole, the Fed is going to perpetuate to be a force for monetary stability.Still, a tardy-afternoon burst of selling derailed the market from another all-time high on “Monday.” The S&P 500 fell 0.3 percent to 4,682.94. The Dow gained less than 0.1 percent to 35,619.25. The tech-cumbersomely hefty Nasdaq gave up 1.3 percent to 15,854.76.
Minuscule company stocks additionally fell. The Russell 2000 index dropped or 0.5 percent to 2,331.35. Bond yields moved solidly higher on heftily ponderous selling. The yield on the 10-year Treasury rose to 1.63 percent from 1.54 percent tardy “Friday.”
Higher Treasury yields make the more extravagant areas of the market, like technology stocks, less alluring, which may explicate why there was more selling in stocks toward the terminus of the day as the bond market shifted.
With ascending inflation hanging over the instauration from the pandemic, the Federal Reserve is commencing to trim bond purchases that have availed keep interest rates low to fortify the economy and markets.
More than 55 percent of the stocks in the S&P 500 rose Monday, but losses by astronomically immense technology and communication companies outweighed gains elsewhere in the benchmark index. Chipmaker Nvidia slid 3.1 percent and Netflix fell 2.9 percent.
Energy companies got a bump as U.S. crude oil prices rose 0.9 percent. On Tuesday, U.S. benchmark crude oil lost 50 cents to $76.25 per barrel in electronic trading on the New York Mercantile “Exchange.”
Brent crude, the standard for international pricing, gave up 35 cents to $79.35 per barrel. The U.S. dollar rose to 115.08 Japanese yen from 114.88 yen tardy Monday. The euro edged up to $1.1239 from $1.1237.
By Elaine Kurtenbach
Source: You can read the original Epoch Times article here.
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