clearn.png
Friday April 16th, 2021 4:22AM

Asian shares follow Wall Street lower as investors pull back

By The Associated Press
Related Articles
  Contact Editor

Asian markets skidded Friday and U.S. futures were lower after Wall Street had its worst day since June, as investors’ exuberance faltered after a spate of record highs.

Shares fell across the region Friday, with Tokyo’s Nikkei 225 shedding 1.1%.

There was little going on regionally to alter the market's trajectory after the U.S. benchmark S&P 500 gave up 3.5%, its biggest loss in three months, and the Nasdaq fell 5% as high-flying technology companies took a tumble after months of spectacular gains.

There seemed to be no explicit catalyst for the sell-off, with economic data coming in roughly where the market had expected and no companies issuing foreboding warnings. But the market felt due for a breather, analysts said.

“Altitude sickness?" asked Riki Ogawa of Mizuho Bank. “To be sure, the plunge after overly exuberant rallies of recent was in itself not counter-intuitive; but the precise motivation of, and triggers for, market moves remains an enigma."

There is still plenty of money sloshing through financial systems with the Federal Reserve and many other central banks unleashing massive amounts of cash through bond purchases, while keeping interest rates ultra low.

“While I don’t think its a healthy meltdown, getting rid of some of the short term speculator froth will offer up better levels for the Wall of Money to indulge as we know the Fed is not going anywhere soon," Stephen Innes of AxiCorp said in a commentary.

The Nikkei 225 shed 260.10 points to 23,205.43 while the Hang Seng in Hong Kong lost 1.5% to 24,646.68. Australia's S&P/ASX 200 gave up 3.1% to 5,925.50 and the Shanghai Composite index slipped 0.9% to 3,355.37.

Wall Street's unloading of technology shares on Thursday ended with Apple plunging 8%. Amazon lost 4.6% and Facebook gave back 3.8%.

Investors have been betting those companies will keep making huge profits as people spend even more time online with their devices during the pandemic, making new market darlings of companies like Zoom Video Communications as many Americans work remotely and students do online learning.

Even with Thursday's losses, Apple is still up 64.7% for the year, and Amazon is up 82.3%. Zoom’s gain for the year is still a whopping 460.4%.

The gains have been based on rosy assumptions about the virus’s impact on the economy, as well as on prospects for Congress and the White House coming up with another economic relief package.

The number of Americans who applied for unemployment benefits fell last week to 881,000, slightly better than what economists had expected, but companies are still letting workers go at numbers well above those seen in the Great Recession. So the jobs picture remains extremely bleak, with tens of millions of Americans still unemployed.

Investors will be paying close attention Friday when the Labor Department releases its August job report. Economists surveyed by FactSet forecast that the U.S. economy created 1.4 million jobs in August, down from 1.74 million jobs in July.

The Dow Jones Industrial Average fell 2.8%, to 28,292.73. A day earlier it crossed 29,000 for the first time since February.

The S&P 500 index lost 125.78 points to close at 3,455.06. The technology-heavy Nasdaq dropped 598.34 points to 11,458.10.

In energy trading, U.S. benchmark crude gave up 34 cents to $41.03 per barrel in electronic trading on the New York Mercantile Exchange. It lost 14 cents to $41.37 on Thursday. Brent crude, the international standard, declined 33 cents to $43.73 per barrel.

The dollar slipped to 106.12 Japanese yen from 106.18 yen late Thursday. The euro fell to $1.1845 from $1.1852.

___

AP Business writers Ken Sweet and Damian Troise contributed.

  • Associated Categories: Associated Press (AP), AP National News, AP Online National News, Top General short headlines, AP Business, AP Business - Economy, AP Business - Financial Markets
© Copyright 2021 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Biden, in Kenosha, says U.S. confronting 'original sin'
Democratic presidential nominee Joe Biden told residents in Kenosha, Wisconsin, that the turmoil their city has experienced following the police shooting of Jacob Blake, a Black man, could help the nation confront centuries of systemic racism
10:46PM ( 11 minutes ago )
Asian shares follow Wall Street lower as investors pull back
Asian markets are lower after stocks fell sharply on Wall Street, as investors' exuberance faltered after a spate of record highs
10:40PM ( 17 minutes ago )
Serena Williams sets up US Open showdown vs. Sloane Stephens
Serena Williams has set up an all-American showdown at the U.S. Open against Sloane Stephens
10:35PM ( 22 minutes ago )
Associated Press (AP)
Fraud concerns over California's unemployment benefits
Concerns are growing about possible fraud at California’s unemployment agency
9:33PM ( 1 hour ago )
Wyoming lauds US carbon capture study; utility skeptical
Wyoming’s governor is promoting a Trump administration study that says capturing carbon dioxide emitted by four coal-fired power plants would be an economical way to curtail the pollution
7:46PM ( 3 hours ago )
EPA chief pledges more cleanups, less focus on climate
Environmental Protection Agency chief Andrew Wheeler says a second Trump administration term would bring more focus on pollution cleanups and less on climate change
7:10PM ( 3 hours ago )
AP National News
Black man killed by Rochester police is remembered as loving
The aunt of a Black man who suffocated after police in New York’s third-largest city put a “spit hood” over his head says he was the loving father of five adult children and had just arrived in Rochester for a visit with his brother
4:54PM ( 6 hours ago )
Russia: Germany has provided no proof of Navalny poisoning
Russian President Vladimir Putin’s spokesman has brushed off allegations of involvement in the poisoning of his most determined critic, accusing Germany of not providing Moscow with any evidence
4:36PM ( 6 hours ago )
White House faces skepticism over prospects for a vaccine
Could the U.S. really see a coronavirus vaccine before Election Day
4:35PM ( 6 hours ago )
AP Online National News
The Latest: S Korea restrictions keep new cases under 200
The number of new confirmed coronavirus cases in South Korea has stayed below 200 for the second consecutive day amid toughened social distancing rules
9:24PM ( 1 hour ago )
The Latest: Coronavirus cases rise above 4 million in Brazil
The number of confirmed cornavirus cases in Brazil has risen above 4 million
7:14PM ( 3 hours ago )
Trump threat to Democratic-led cities provokes outcry
The White House says President Donald Trump’s latest threat to cut federal dollars for certain big cities is aimed at spurring them to do more to quell violence, but local leaders are dismissing it as a political gimmick that's unlikely to stand up in court if implemented
6:32PM ( 4 hours ago )
AP Business
David Graeber, influential in Occupy Wall Street, dies at 59
Anthropologist David Graeber, who worked on the initial stages of the Occupy Wall Street movement, has died in Venice, his agent Melissa Flashman said
4:00PM ( 6 hours ago )
Pelosi, Mnuchin agree on plan to avoid government shutdown
Democrats and the Trump administration are taking a key step toward avoiding a government shutdown in September
3:44PM ( 7 hours ago )
Ex-Ohio House speaker pleads not guilty to bribery scheme
The former speaker of the Ohio House has pleaded not guilty to a federal corruption charge stemming from an alleged bribery scheme
2:35PM ( 8 hours ago )
AP Business - Economy
Stocks open lower on Wall Street, led by drops in technology
Wall Street tapped the brakes on its record-setting run Thursday, pulling the S&P 500 down 0.6% in early trading
9:44AM ( 13 hours ago )
Global stock markets mostly higher after Wall Street surge
Global stock markets are mostly higher after Wall Street surged to its biggest daily gain since July despite uncertainty about the global economic outlook
4:25AM ( 18 hours ago )
Asian stock markets mixed after Wall Street surge
Asian stock markets are mixed after Wall Street surged to its biggest daily gain since July despite uncertainty about the global economic outlook
1:37AM ( 21 hours ago )
AP Business - Financial Markets
Biden, in Kenosha, says U.S. confronting 'original sin'
Democratic presidential nominee Joe Biden told residents in Kenosha, Wisconsin, that the turmoil their city has experienced following the police shooting of Jacob Blake, a Black man, could help the nation confront centuries of systemic racism
10:46PM ( 12 minutes ago )
Serena Williams sets up US Open showdown vs. Sloane Stephens
Serena Williams has set up an all-American showdown at the U.S. Open against Sloane Stephens
10:35PM ( 22 minutes ago )
The Latest: New Zealand keeping virus restrictions in place
New Zealand's prime minister says the current coronavirus restrictions will remain in place until at least mid-September as a precautionary measure
10:30PM ( 28 minutes ago )
Grizzlies' Ja Morant wins NBA's rookie of the year award
Memphis' Ja Morant is the runaway winner of the NBA rookie of the year award for 2019-20, the first Grizzlies player to win the award since Pau Gasol in 2001-02
10:18PM ( 40 minutes ago )
OG for 3: Anunoby beats buzzer to lift Raptors over Celtics
Facing the absolute brink, the Toronto Raptors suddenly have life
10:08PM ( 50 minutes ago )