[ad_1]
SINGAPORE (AP) – Asian stocks were mixed on Wednesday ahead of US inflation data offering a glimpse into the recovery of the world’s largest economy.
The Nikkei 225 in Tokyo rose 0.7% to 28,070.51 and the Shanghai Composite Index rose 0.1% to 3,532.93. Seoul’s Kospi, on the other hand, lost 0.8% to 3,217.65.
Hong Kong’s Hang Seng fell below 0.1% to 26,599.13 in afternoon trading. Sydney’s S & P-ASX 200 was up 0.3% to 7,584.30.
The benchmark index in Malaysia rose, but those of India, Singapore and Indonesia fell.
Analysts expect the latest headline inflation in the United States, due Wednesday, to rise at a slower pace of 5.3% in July compared to a year earlier. This is slightly lower than the 5.4% in June.
“A higher than expected reading may suggest that inflation is more persistent and increase the risk of an earlier Fed deadline,” IG’s Jun Rong Yeap said.
It also matters where the price increases are. While the previous highlights were the prices of air travel and used cars, the main determinant of inflation could be food and shelter.
Traders will be watching the continued growth in food and housing prices, Yeap said.
They are also grappling with the spread of the delta variant of the coronavirus in Asia, which has resulted in the reimposition of travel restrictions in China. Parts of Japan, including Tokyo, the capital, remain in a state of emergency.
On Wall Street Tuesday, financial and industrial companies helped lift the market amid falling tech stocks.
The S&P 500 recovered from an early slide and added 0.1% to 4,436.75. The Dow Jones Industrial Average rose 0.5% to 35,264.67. The tech-rich Nasdaq slipped 0.5% to 14,788.09.
Banks made some of the biggest gains as bond yields edged up. Banks enjoy higher yields, which allows them to charge higher interest rates on loans. The 10-year Treasury yield fell from 1.31% Monday night to 1.35%.
In energy markets, benchmark US crude gained 28 cents to $ 68.57 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the price standard for international oils, added 37 cents to $ 71 a barrel in London.
The dollar rose to 110.74 yen from 110.54 yen on Tuesday. The euro eased to $ 1.1712 against $ 1.1727.
“A good reading of the stock and the core US consumer price index could continue to support the dollar in the near term,” ActivTrades’ Anderson Alves said in a report.
“This could put some pressure on US yields, which could alter global market flows for weeks to come, as traders may have to revise US inflation expectations and reassess future actions by the Fed,” he said. he added.
Source link
