Asian markets follow fifth straight gain for Wall Street
BEIJING (AP) – Asian stock markets were mixed on Wednesday after Wall Street rose for a fifth day on strong corporate earnings.
Shanghai and Seoul, South Korea, fell while Tokyo and Hong Kong rose.
Wall Street’s benchmark S&P 500 rose 0.7%, propelled by health and tech stocks.
Asian markets “were in positive territory” as the region “builds on protracted gains on Wall Street after encouraging results,” ActivTrades’ Anderson Alves said in a report.
Also on Wednesday, investors watched for inflation updates from Britain and some other European governments. Higher inflation could force central banks to act sooner than expected to raise interest rates and reverse other economic stimulus measures.
The Shanghai SHCOMP Composite Index,
lost 0.2% to 3,588 and the Nikkei 225 NIK,
in Tokyo gained 0.1% to 29,255. The Hang Seng HSI,
in Hong Kong added 1.3% to 26,134.
The Kospi 180721,
in Seoul lost 0.4% to 3,014, while Sydney’s S & P-ASX 200 XJO,
rose 0.5% to 7,413.
New Zealand and Singapore are advancing while Bangkok is falling.
Tuesday, the S&P 500 SPX,
fell to 4,519.63, less than 0.4% from its all-time high on September 2. The Dow Jones Industrial Average DJIA,
won 198.70 points to 34,457.31. The Nasdaq Composite COMP,
increased by 107.28 points to 15,129.09.
Johnson & Johnson JNJ,
the largest maker of health care products, rose 2.3% after posting strong quarterly earnings and raising its profit guidance for the year.
Apple Inc. AAPL,
grew 1.5% and software maker Adobe ADBE,
Investors fear that disruptions to supply lines and shipments due to the coronavirus pandemic could lower corporate profits or push up inflation.
Procter & Gamble PG,
fell 1.2% after saying it would raise prices due to rising commodity and freight costs.
Overall, however, analysts polled by FactSet are forecasting earnings growth of 30% for the S&P 500, up from 23% in June.
Exxon Mobil XOM,
rose 1.5% with rising oil prices. US crude is up 73% for the year, while natural gas prices are up 81%.
Soaring energy prices are raising concerns that tight supply could dampen economic recovery.
Also on Tuesday, the Commerce Department reported that US homebuilding fell 1.6% in September. Beazer BZH Houses,
fell 2.7% and Hovnanian Enterprises HOV,
On the energy markets, the American benchmark CL00 crude,
lost 52 cents to $ 81.92 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude BRN00,
the basis of international oil prices, fell 57 cents to $ 84.51 per barrel in London.
The dollar rose to 114.51 yen USDJPY,
from 114.31 yen on Tuesday. The euro EURUSD,
held steady at $ 1.1640.