fog.png
Wednesday December 8th, 2021 10:46AM

Asian shares mostly lower after mixed day on Wall Street

By The Associated Press
Related Articles
  Contact Editor

BANGKOK (AP) — Shares were mostly lower in Asia on Thursday after a mixed session on Wall Street as losses by technology and industrial companies offset other gains.

Shanghai advanced after reopening following the Lunar New Year holiday. Shares fell in Tokyo, Hong Kong and Seoul.

The yield on the 10-year Treasury note held near its highest level in a year, at 1.27%. Bond rates have risen on expectations that pandemic recoveries will push inflation higher, and that has capped buying enthusiasm, as investors have sold to lock in recent gains.

The U.S. Labor Department reported Wednesday that U.S. wholesale prices surged by a record 1.3% in January, led by big gains in health care and energy prices. The bigger-than-expected increase was the largest one-month gain on records that go back to 2009.

Underscoring signs of recovery, the Commerce Department said U.S. retail sales soared a seasonally adjusted 5.3% in January from the month before, the biggest increase since June and much larger than forecast.

Optimism that rollouts of coronavirus vaccines will set the stage for stronger economic growth in the second half of this year have been pushing shares higher.

The Shanghai Composite index gained 0.6% to 3,678.11 and the S&P/ASX 200 was flat, at 6,885.90. Japan's Nikkei 225 lost 0.2% to 30,236.09, while the Hang Seng in Hong Kong shed 1.2% to 30,725.47. In South Korea, the Kospi gave up 1.5% to 3,086.66.

The yield on the 10-year Treasury was steady at 1.28%, near its highest level in a year. The rise in bond yields has raised some concerns about the potential for higher inflation, but has also been a sign that the prospect for economic growth remains good.

On Wednesday, the S&P 500 slipped less than 0.1%, to 3,931.33 after handing back an early gain. The tech-heavy Nasdaq composite dropped 0.6% to 13,965.49.

The Dow Jones Industrial Average rose 0.3% to 31,613.02, a second straight record high. The modest pickup was due in large large part to gains in Verizon Communications and Chevron, which climbed after Warren Buffett’s Berkshire Hathaway said it made major new investments in them in the second half of last year.

Small-company stocks took a bigger hit, with the Russell 2000 index of smaller companies slipping 0.7% to 2,256.11.

Energy prices rose again, adding to a sharp increase the day before due to the frigid weather that’s impacted much of the U.S.

U.S. benchmark crude oil gained 56 cents to $61.70 per barrel in electronic trading on the New York Mercantile Exchange. It surged $1.09 to $61.14 per barrel on Wednesday. Brent crude, the international standard, climbed 74 cents to $65.08 per barrel.

The strong retail sales data appeared to reinforce the perception that inflation is picking up even before the Biden administration has delivered on its proposed $1.9 trillion stimulus package and other spending aimed to get the economy back on solid footing.

That could eventually lead the Federal Reserve to rethink its current policy of keeping interest rates at ultra-low levels.

The minutes from the Fed’s January policy meeting, released Wednesday afternoon, showed the central bank believed the pandemic still poses considerable risks to the economy. The minutes also reflected Fed officials' widespread support for keeping interest rates low in order to boost the economy and help millions of Americans regain lost jobs.

Fed Chairman Jerome Powell has cautioned that inflation could accelerate for a time in coming months as the country opens up. But he and many private economists believe this will be only a temporary rise and not a sign that inflation is getting out of control.

Last month’s jump in retail sales was largely driven by the $600 stimulus checks that went out to most Americans in late December and early January. The data shows that recession-hit Americans are eager to spend cash on necessities, and aren’t saving the funds — which is the goal of stimulus checks.

It potentially means that additional stimulus, likely in the form of $1,400 checks in the $1.9 trillion stimulus plan, will likely provide a necessary boost to the economy.

The U.S. dollar rose to 105.92 Japanese yen from 105.89 yen. The euro strengthened to $1.2047 from $1.2042.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Corporate News, 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.
Asian shares mostly lower after mixed day on Wall Street
Shares are mostly lower in Asia after a mixed session on Wall Street as losses by technology and industrial companies offset other gains
12:08AM ( 7 minutes ago )
Migrants on the move again in Mexico and Central America
The first Mexican shelter reached by migrants after trekking through the Guatemalan jungle has hosted nearly 1,500 migrants only six weeks into the year compared to 3,000 all of last year, even though it has halved its dormitory capacity due to the pandemic
12:01AM ( 14 minutes ago )
Serena stopped: Osaka beats Williams in Australian Open SF
Naomi Osaka has stopped Serena Williams’ latest bid for a record-tying 24th Grand Slam singles title in the Australian Open semifinals
11:47PM ( 29 minutes ago )
Associated Press (AP)
US needs to brace itself for more deadly storms, experts say
The deadly winter storms that knocked out power for millions in Texas and other states have exceeded the worst-case scenarios of many U.S. utilities
9:58PM ( 2 hours ago )
Malaysia ex-PM's wife ordered to make defense in graft trial
A Malaysian court has ordered the wife of ex-Prime Minister Najib Razak to enter her defense in a corruption trial linked to a $310 million solar energy project
9:52PM ( 2 hours ago )
The Latest: Hong Kong ease pandemic rules as cases decline
Hong Kong is reducing social distancing rules following a sharp drop in new coronavirus cases, including restarting indoor dining and reopening gyms
9:28PM ( 2 hours ago )
AP Business
EXPLAINER: Why the power grid failed in Texas and beyond
The power outages tormenting Texas and other states are exposing weaknesses in an electricity system designed when the weather’s seasonal shifts were more consistent and predictable
7:12PM ( 5 hours ago )
In Australia, Google makes publisher deals, Facebook walks
Google is quickly negotiating generous deals with Australian media companies to pay for journalism as lawmakers consider forcing digital giants into such agreements
5:05PM ( 7 hours ago )
The Latest: US government seizes over 10M fake N95 masks
Federal agents have seized more than 10 million fake N95 masks in recent weeks
4:21PM ( 7 hours ago )
AP Business - Corporate News
Biden's $15 wage proposal: Job killer or a boon for workers?
President Joe Biden’s effort to raise the federal minimum wage to $15 an hour could provide a welcome opportunity for someone like Cristian Cardona, a 21-year-old fast food worker
6:08PM ( 6 hours ago )
Groups ask Biden for wider environmental review of nuke work
Watchdog groups want the Biden administration to reconsider a decision by a U.S. agency not to conduct a more extensive environmental review related to production of the plutonium cores used in the nation's nuclear arsenal
5:32PM ( 6 hours ago )
Fed officials expressed concerns in over slowing economy
Federal Reserve officials were convinced last month that the U.S. economy and job growth had slowed as coronavirus cases surged across the country
3:34PM ( 8 hours ago )
AP Business - Economy
Italy's Draghi urges unity, sacrifice in fighting the virus
Italian Premier Mario Draghi has urged Italy’s polarized politicians to unite behind his new government to help the country confront the coronavirus pandemic and the economic devastation it has wrought
8:44AM ( 15 hours ago )
Global shares slip on profit-taking, hopes grow for recovery
Global shares are mostly lower as investors sell to lock in profits from the recent rally driven by hopes economies will gradually return to a pre-pandemic normal
4:05AM ( 20 hours ago )
Asian shares slip on profit-taking, hopes grow for recovery
Asian shares are mostly lower as investors sell to lock in profits from the recent rally driven by hopes economies will gradually return to a pre-pandemic normal
2:09AM ( 22 hours ago )
AP Business - Financial Markets
US needs to brace itself for more deadly storms, experts say
The deadly winter storms that knocked out power for millions in Texas and other states have exceeded the worst-case scenarios of many U.S. utilities
12:12AM ( 3 minutes ago )
Migrants on the move again in Mexico and Central America
The first Mexican shelter reached by migrants after trekking through the Guatemalan jungle has hosted nearly 1,500 migrants only six weeks into the year compared to 3,000 all of last year, even though it has halved its dormitory capacity due to the pandemic
12:01AM ( 14 minutes ago )
Serena stopped: Osaka beats Williams in Australian Open SF
Naomi Osaka has stopped Serena Williams’ latest bid for a record-tying 24th Grand Slam singles title in the Australian Open semifinals
11:47PM ( 29 minutes ago )
Power outages linger for millions as another icy storm looms
Millions of Americans endured another frigid day without electricity or heat in the aftermath of a deadly winter storm
11:44PM ( 31 minutes ago )
The Latest: Osaka beats Williams in Australian Open SF
Naomi Osaka has stopped Serena Williams’ latest bid for a record-tying 24th Grand Slam singles title in the Australian Open semifinals
11:36PM ( 40 minutes ago )