Asian Shares Advance Despite Losses on Wall Street | Business News

 Asian Shares Advance Despite Losses on Wall Street | Business News


By ELAINE KURTENBACH, AP Business Writer

Parts of Asia rallied on Tuesday after another shaky day that extended Wall Street’s consecutive losses.

Hong Kong is up 2.5% and other regional benchmarks are relatively high. Oil prices have dropped.

Signs of progress in China’s efforts to control coronavirus outbreaks show even greater concern over weaker-than-expected Chinese economic data for April.

Investors are also looking for comments from Federal Reserve officials that could provide insight into the U.S. economic outlook and future policy measures.

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“Markets remain in fight or flight mode while rolling the dice on recession odds,” Stephen Innes of SPI Asset Management said in a report. He added, “traders seem to be in the mood to remain bearish until proven not. However, there is still a lingering risk of tone despite the terrible data in China.”

Hong Kong’s Hang Seng gained 500 points to 20,450.95 while Tokyo’s Nikkei 225 rose 0.4% to 26,659.75. In Seoul, Kospi rose 0.8% to 2,618.37.

Australia’s S & P/ASX 200 was up 0.3% at 7,115.40 while the Shanghai Composite index was 0.4% higher, at 3,085.80.

Markets are trying to measure how companies and consumers are coping with higher prices and whether central banks can help alleviate the problem. On Wall Street, major indexes have been slowing since early April.

On Monday the S&P 500 fell 0.4% to 4,008.01. This is from a six -week consecutive loss. The Dow Jones Industrial Average took a profit, rising 0.1% to 32,223.42.

The tech-heavy Nasdaq fell 1.2% to 11,662.79.

Technology stocks are one of the biggest losers. Apple fell 1.1%. Large technology companies, with their expensive costs, are likely to push the broader market up or down. The sector has become even more heavily burdened as investors are worried about high inflation and rising interest rates.

Retailers also had some of the biggest losses. Amazon fell 2% and Starbucks fell 4.2%.

Energy stocks and health care companies gained ground as oil prices soared. Chevron was up 3.1% and Eli Lilly was up 2.7%.

Spirit Airlines rose 13.5% after JetBlue said it would make a counter offer for the budget carrier after Spirit rejected its earlier bids.

Defense contractor ManTech jumped 15% after investment firm Carlyle Group helped it buy the defense contractor.

The Federal Reserve has gradually pushed the benchmark short-term interest rate from a record low to almost zero, where it spent most of the pandemic. It also said it could continue to raise rates to double the usual amount at future meetings. Investors are worried that the central bank could cause a recession if it raises rates too high or too quickly.

Ongoing supply chain problems continue to feed inflation, and recent COVID-19 lockouts in China have raised concerns that could worsen. Russia’s war against Ukraine has made high energy prices more volatile, which could also take up inflation.

U.S. crude prices rose 3.4% on Monday and are up more than 50% for the year. Natural gas prices rose 3.8% and doubled in 2022.

On Tuesday, U.S. benchmark crude fell 30 cents to $ 113.90 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the basis of international trade pricing, lost 20 cents to $ 114.04 per barrel.

The Commerce Department is set to release the retail sales report for April later Tuesday. Home Depot and Walmart will report their latest financial results. Target will report its results on Wednesday.

In currency trading, the dollar rose to 129.34 Japanese yen from 129.11 yen late Monday. The euro is at $ 1.0448, up from $ 1.0436.

Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or distributed.



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