Wall Street saw new highs & Japanese inflation decreased: Asian stock markets substantially higher.
BEIJING, China – After Wall Street set a record and Japanese inflation fell, Asian stock markets were mainly higher on Friday. Shanghai, Tokyo, and Sydney stock exchange indexes also rose. Hong Kong has turned down the opportunity.
The S&P 500 index on Wall Street gained 0.3 per cent, putting it on track for a weekly gain.
Investors are moving their emphasis away from corporate results and onto the longer-term prognosis for global economies, as well as whether central banks would be under pressure to calm surging prices by reducing support sooner than expected.
In a study, ThinkMarkets’ Fawad Razaqzada stated that inflation is “now the key emphasis points for the markets.” On Friday, Japan’s government reported that consumer inflation in October fell to 0.1 per cent from 0.2 per cent the previous month.
The Shanghai Composite Index increased by 1.1 per cent to 3,558.87 points, while the Nikkei 225 in Tokyo increased by 0.5 per cent to 29,745.87 points. Hong Kong’s Hang Seng Index fell 1.3 per cent to 24,982.55.
Seoul’s Kospi rose 0.8 per cent to 2,970.96, while Sydney’s S&P-ASX 200 rose 0.2 per cent to 7,396.50. The Indian marketplaces were closed due to a national holiday. New Zealand, Singapore, and Bangkok all had declined, although Jakarta saw an increase.
The S&P 500 index increased to 4,704.54 on Wall Street, while the Dow Jones Industrial Average fell 0.2 per cent to 35,870.95. The Nasdaq Composite Index rose by 0.5 per cent to 15,993.71.
The producer of graphics chips for gaming and artificial intelligence, Nvidia Corp., gained 8.3% after reporting good profits. Micron Technology Inc. gained 2.1 per cent, and Advanced Micro Devices Inc. gained 2.4 per cent.
The stock of Macy’s Inc. soared 21.2 per cent after the department store company exceeded earnings estimates. The S&P 500 lost two-thirds of its value.
As investors assessed the latest corporate reports, gains by large technology companies and retailers outweighed losses in other industries as Wall Street saw new highs & Japanese inflation decreased: Asian stock markets substantially higher.
Also, on Thursday, the Labor Department reported that the number of Americans filing for unemployment benefits has dropped to a historic low of 268,000 for the seventh week.
Fall of Asian Stocks:
Later an overnight comeback in U.S. and European equities, Asian stocks fell, reversing early gains, as investors shrugged off concerns about a potential U.S. government debt default, while oil halted at multi-year highs.
Concerns over energy supplies are driving the rise in oil prices, which comes two days after the OPEC+ group of producers decided to stick to its scheduled output increase rather than boost it further.
U.S. crude soared to its most significant level but fell back to $78.87 a barrel, down 0.09 per cent. Brent crude fell 0.08 per cent to $82.49 a barrel after hitting a three-year high the day before.
“According to OPEC’s forecast, global oil stocks will continue to decline.” “Given how low oil stockpiles are already, this is an issue,” CBA analysts said in a note.
They said that rising costs might jeopardise the global economic recovery since global oil consumption was building up as economies reopened due to higher immunisation rates.
Rise of Asian Stocks:
Chinese stocks have been pummelling by regulatory reforms, housing market turbulence, and, most recently, a power shortage in the last three months. Still, some investors are now seeing a buying opportunity.
“China’s argument is veering away from being entirely negative. ‘Is there a way to get through the regulatory uncertainty?’ many wonder. What proportion of this is represented in prices?’ “HSBC’s Asia Pacific head of equities strategy, Herald van der Linde, stated.
As the plan to prevent a government debt default surfaced, U.S. Treasury rates jumped ahead of those numbers, with volatility lessening at the short end of the curve.
The benchmark 10-year U.S. Treasury yield increased 1.6 basis points to 1.58887 per cent during Asian hours, reaching its highest level since June, when it hit 1.594 per cent. [U.S./]
As traders anticipated the employment report, the dollar index, which measures the greenback against a basket of rivals, was barely changed at 94.206, not far from a 12-month high of 94.504 set in late September.
The jobs data might surprise investors by being lower than expected, according to CBA analysts, but “we think it would take a wider miss than we estimate to prevent the [Federal Reserve] from announcing a taper in November.”
“A high payrolls data can boost the dollar since it signals an impending… taper.” The price of oil has remained unstable. Brent crude jumped 0.6 per cent to $ 82.44 per barrel, while U.S. crude rose 0.78 per cent to $78.90. [O/R]
Since early October, U.S. equities have climbed as corporations have announced higher earnings than expected. The S&P 500 has recorded a 39 per cent increase in overall profits, which outperforms June projections of 23 per cent growth for the quarter.
Companies are dealing with rising raw material costs as well as supply chain issues. Consumers have so far withstood price rises, but economists fear that if the trend continues, they may cut back on their spending.
On the New York Mercantile Exchange, benchmark U.S. crude jumped 72 cents to $79.13 per barrel in electronic trading. Brent crude’s worldwide oil price benchmark rose 79 cents to $82.03 per barrel in London.
The dollar gained to 114.33 yen from 114.27 yen on Thursday. The euro fell from $1.1370 to $1.1355.
