Asian markets decline after Wall Street recovers to new high

Asian markets decline after Wall Street recovers to new high

PTIUpdated: Monday, June 28, 2021, 12:21 PM IST
article-image
Investors are looking ahead to monthly surveys of manufacturing activity in Japan, China and South Korea. | AFP

Asian stock markets declined Monday after Wall Street hit a new high as investors looked ahead to manufacturing indicators from Japan, China and South Korea.

Shanghai, Tokyo and Seoul declined. Trading in Hong Kong was suspended due to a weather alert.

On Friday, Wall Street's S&P 500 index turned in its biggest weekly gain in four months.

Investors have been encouraged by progress in Washington on an infrastructure spending plan. Markets have recovered from the Federal Reserve's announcement that it might start raising interest rates sooner than expected.

The S&P's gain “is generally telling of improving sentiment,” said Mizuho Bank in a report.

The Shanghai Composite Index rose less than 0.1 percent to 3,609.43 while the Nikkei 225 in Tokyo shed 0.3 percent to 28,984.93.

The Kospi in Seoul shed 0.1 percent to 3,298.52 while the ASX-S&P 500 in Sydney slipped 0.1 percent to 7,299.00. New Zealand and Jakarta also declined, while Singapore advanced.

Investors are looking ahead to monthly surveys of manufacturing activity in Japan, China and South Korea.

Production is recovering from last year's plunge but faces shortages of processor chips and other disruptions.

Markets have swung between optimism about economic recovery supported by the rollout of coronavirus vaccines and unease that the Fed and other central banks might feel pressure to pull back stimulus to cool rising inflation.

The Fed, which says it believes US price surges are temporary, surprised traders by saying it might start raising rates by late 2023, earlier than the previous 2024 target. Markets sank but have recovered most of their losses.

On Friday, the Commerce Department said one inflation measure closely watched by the Fed increased 0.4 percent in May and is up 3.9 percent over the past 12 months, well above the Fed's 2 percent target.

Also Friday, President Joe Biden and a group of senators agreed on a $973 billion, five-year plan for spending on roads, railways and ports.

On Wall Street, the S&P 500 rose 0.3 percent to 4,280.70. That gave the index a weekly gain of 2.7 percent, its biggest since February 5.

The Dow Jones Industrial Average gained 0.7 percent to 34,433.84 while the Nasdaq Composite lost 0.1 percent to 14,360.39.

In energy markets, benchmark U.S. crude lost 14 cents to $73.91 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 75 cents to $74.05 a barrel Friday. Brent crude, the basis for international oil prices, shed 23 cents to $75.15 per barrel in London. It gained 62 cents the previous session to $76.18.

The dollar fell to 110.69 yen from Friday's 110.84 yen. The euro declined to $1.1924 from $1.1932.

RECENT STORIES

The Impact Of AI On Psychometric Testing

The Impact Of AI On Psychometric Testing

Shapoorji Pallonji Group's Afcons Infrastructure Files Draft Red Herring Prospectus For ₹7,000 Cr...

Shapoorji Pallonji Group's Afcons Infrastructure Files Draft Red Herring Prospectus For ₹7,000 Cr...

ICICI Securities' Retail Distribution Head Quits; Exchange Filing Reveals

ICICI Securities' Retail Distribution Head Quits; Exchange Filing Reveals

Exploring The Technological Foundation Of Harambe Token

Exploring The Technological Foundation Of Harambe Token

The Entrepreneurial Journey Of Moglix’s Founder & CEO, Rahul Garg, And How He Built A...

The Entrepreneurial Journey Of Moglix’s Founder & CEO, Rahul Garg, And How He Built A...