Asian stocks fall after mixed results on Wall Street



Updated 7 minutes ago

BANGKOK (AP) – Stocks edged down in Asia on Tuesday after a mixed end on Wall Street, as investors weighed inflation risks against signs that the recovery from the pandemic is gathering pace.

Benchmarks fell in Tokyo, Hong Kong and Shanghai and remained stable in Seoul.

In a mixed week opening in New York, the S&P 500 slipped less than 0.1%, abandoning some recent gains. The benchmark is less than 0.2% of its all-time high it reached a month ago.

Japan said its economy contracted at an annual rate of 5.1% in January-March, revised up from the previously reported 6.3% contraction. On a quarterly basis, the economy contracted 1% instead of minus 1.3% preliminary.

A worsening of the coronavirus epidemic that has caused the government to declare a partial state of emergency and tighten pandemic precautions is likely to keep the economy in the doldrums in the current quarter, Makoto Tsuchiya said. from Oxford Economics in a commentary.

“However, we remain optimistic that the pace of the recovery will pick up in the second half of the year as domestic demand picks up, supported by an increase in vaccinations, while foreign demand is expected to continue to support the manufacturing sector.” , did he declare.

The Hong Kong Hang Seng lost 0.3% to 28,713.42 and the Tokyo Nikkei lost 0.1% to 28,987.58. The Shanghai Composite Index fell 0.4% to 3,584.23 and in Australia, the S & P / ASX 200 slipped 0.1% to 7,274.20. In Seoul, the Kospi rose less than 0.1% to 3,254.74.

It’s a relatively light week for economic data, although investors will get another glimpse of the impact of inflation on Thursday with the US Department of Labor’s consumer price report for May. The prices of everything from food to clothing and shelter have risen as the economy recovers.

Investors and economists fear that a sharp rise in prices could dampen the recovery and cause the Federal Reserve to withdraw some of its support for the economy, including keeping interest rates ultra-low and buying obligations.

“The market is treading water right now and waiting for another catalyst to rise,” said Sam Stovall, chief investment strategist at CFRA.

The S&P 500 lost 3.37 points to 4,226.52. The Dow Jones fell 0.4% to 34,630.24. The Nasdaq rose 0.5% to 13,881.72. The Russell 2000 Small Business Index gained 1.4% to 2,319.18.

Banks, industrials stocks, and materials companies have helped drive down the market as a whole. Communications companies and healthcare stocks made strong gains. Facebook rose 1.9%, while drugmaker Moderna rose 6.6% after seeking regulatory clearance in Europe to allow teens to receive its COVID-19 vaccine.

Biogen climbed 38.3% for the biggest gain of the S&P 500 after the Food and Drug Administration said it approved the company’s drug for the treatment of Alzheimer’s disease. Biogen’s drug is the first FDA-approved treatment for Alzheimer’s disease in almost 20 years.

Mostly, Treasury bill yields increased. The 10-year Treasury yield remained stable at 1.57%.

Cruise lines increased after several companies announced or confirmed their intention to resume sailing this summer. The industry has essentially shut down during the virus pandemic. Norwegian Cruise Line added 3.1% and Carnival rose 1.1%.

The company buyout plans have shifted several actions. US Concrete jumped 29.3% after building materials company Vulcan Materials announced plans to buy the company. Design software company Autodesk fell 2.1% after announcing plans to continue to buy Altium.

US benchmark crude oil lost 55 cents to $ 68.68 a barrel in electronic trading on the New York Mercantile Exchange. It lost 39 cents to $ 69.62 a barrel on Monday. Brent crude, the international standard, fell 57 cents to $ 70.92 a barrel.

The dollar fell from 109.25 yen to 109.37 Japanese yen. The euro fell to $ 1.2182 from $ 1.2192.

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AP Business Writers Alex Veiga and Damian J. Troise contributed.





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