clearn.png
Saturday December 4th, 2021 8:13PM

Asian shares trade mixed on recovery hopes, yield worries

By The Associated Press
Related Articles
  Contact Editor

TOKYO (AP) — Asian shares were mixed Tuesday, cheered by the expected passage of the U.S. stimulus package, although that optimism was tempered by worries about inflation and the coronavirus pandemic.

Japan's benchmark Nikkei 225 added nearly 1.0% to finish at 29,027.94. South Korea's Kospi slipped 0.7% to 2,976.12. Australia's S&P/ASX 200 added 0.5% to 6,771.20. Hong Kong's Hang Seng edged up 0.2% to 28,584.96, while the Shanghai Composite slipped 1.8% to 3,359.26.

Jingyi Pan, senior market strategist with IG in Singapore, said Asian markets were weighing “the impact of a global recovery alongside the prospect of an accelerating climb in U.S. bond yields.”

Yoshimasa Maruyama, chief market economist for SMBC Nikko Securities, said the global economic rebound is stronger than some had previously expected, and that recognition is becoming more widespread in March than in February.

“And this recognition of recovery in March itself will work as a source for more confidence,” he said.

The vaccine rollouts in the U.S. and Europe will also help instill confidence in future growth, he added.

Revised economic data for October-December, released Tuesday, showed the Japanese economy grew at an annual pace of 11.7%. That was weaker than the 12.7% growth reported last month in the preliminary estimate.

Quarter on quarter, the growth was 2.8%, revised from 3%, as public and private investment was not as positive as initially thought. Japan’s economy expanded at a 22.8% pace in the July-September period. That followed a sharp contraction as the pandemic slammed tourism, trade, consumption and production.

On Wall Street, U.S. stock indexes closed mostly lower, as higher bond yields helped set off more heavy selling of shares in technology companies.

The S&P 500 fell 0.5% to 3,821.35 after gaining 1% earlier. Because of their huge size, drops by Apple, Google's parent company and other major technology stocks helped drag the S&P 500 into the red, even though more stocks rose than fell in the benchmark index.

The selling, which accelerated toward the end of the day, left the tech-heavy Nasdaq composite down 10.5% from the all-time high it reached on Feb. 12. A drop of 10% or more from a recent peak is known on Wall Street as a “correction.”

Bond yields rose broadly. The yield on the 10-year Treasury note climbed to 1.60% from 1.55% late Friday. But it fell back to 1.57% after hours.

Yields have been marching higher with rising expectations for growth and the inflation that could follow. Higher yields put downward pressure on stocks generally, in part because they can steer away dollars that might have gone into the stock market into bonds instead. That makes investors less willing to pay such high prices for stocks, especially those that look the most expensive, such as technology stocks.

The Dow Jones Industrial Average rose 1% to 31,802.44. The Nasdaq lost 2.4% to 12,609.16.

Smaller company stocks, which have led the market higher this year, notched more gains. The Russell 2000 index added 0.5% to 2,202.98.

Financial stocks had some of the best gains. Wells Fargo rose 3.3% and Citigroup gained 2.8%.

Trading has been choppy in recent weeks as investors fret over the spike in long-term interest rates in the bond market. The S&P 500 is coming off its first weekly gain in three weeks.

Technology companies have been heading lower as investors start to doubt whether the huge gains they made during the pandemic months can continue if inflation surges.

Investors have been betting that $1.9 trillion in coming government stimulus will help lift the economy out of its coronavirus-induced malaise. There are also investors who are betting that stimulus and an improving economy will result in some inflation down the road.

The U.S. economic aid package, passed narrowly by the Senate on Saturday, provides direct payments of up to $1,400 for most Americans and extends emergency unemployment benefits. It's a victory for President Joe Biden and his Democratic allies, and final congressional approval is expected this week.

Oil prices also have been rising. After plunging with the onset of the pandemic, as demand plummeted, prices have been recovering. Last week, some observers were expecting the OPEC cartel and its allies to lift more restrictions and let the oil flow more freely. But OPEC agreed to leave most restrictions in place.

In energy trading, benchmark U.S. crude for April delivery added 2 cents to $65.07 a barrel. It fell $1.04, or 1.6% to $65.05 a barrel on Monday. It's still up 32.8% so far this year. Brent crude, the international standard, rose 16 cents to $68.40 a barrel.

In currency trading, the U.S. dollar rose to 109.15 Japanese yen from 108.87 yen late Monday. The euro strengthened to $1.1855 from $1.1846.

___

AP Business Writers Damian J. Troise and Alex Veiga contributed.

Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Utilities
© Copyright 2021 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Miles out at Kansas over behavior with women while at LSU
Les Miles is out as Kansas' head coach just days after he was placed on administrative leave amid sexual misconduct allegations from his tenure at LSU
12:02AM ( 1 minute ago )
Explosive Harry, Meghan interview reverberates across globe
Prince Harry and Meghan’s explosive TV interview has divided people around the world, rocking an institution that is struggling to modernize with claims of racism and callousness toward a woman struggling with suicidal thoughts
11:57PM ( 7 minutes ago )
Trial for ex-cop charged in Floyd's death forges on, for now
The trial of a former Minneapolis police officer charged in the death of George Floyd is forging ahead with jury selection, even though a ruling from the Minnesota Court of Appeals could quickly halt the case and delay it for weeks
11:48PM ( 15 minutes ago )
Associated Press (AP)
Asian shares trade mixed on recovery hopes, yield worries
Asian shares are trading mixed, cheered by the imminent passage of the U.S. stimulus package, but that optimism was tempered by worries about inflation and the coronavirus pandemic
10:45PM ( 1 hour ago )
Cowboys, QB Prescott finally agree on $160 million contract
The Dallas Cowboys and Dak Prescott have finally agreed on the richest contract in club history, two years after negotiations began with the star quarterback
10:37PM ( 1 hour ago )
US lets Venezuelans stay temporarily, will review sanctions
The Biden administration is offering temporary legal residency to several hundred thousand Venezuelans who fled their country's economic collapse and will review the U.S. sanctions aimed at isolating the South American nation
10:15PM ( 1 hour ago )
AP Business
Airline stocks rally, American cites plan to pay off loan
Air travel hasn't recovered from the pandemic, but a few more people are flying
5:58PM ( 6 hours ago )
COVID bill to deliver big health insurance savings for many
Several million people stand to save hundreds of dollars in health insurance costs, or more, under the Democratic coronavirus relief legislation on track to pass Congress
5:53PM ( 6 hours ago )
Wall Street finishes mixed as tech slump offsets other gains
Wall Street ended mixed as slumps in several Big Tech companies offset gains in many other parts of the market
5:06PM ( 6 hours ago )
AP Business - Economy
Attack on Saudi oil site fuels upward march for crude prices
Oil prices rose Monday as Saudi Arabian oil facilities were targeted by drone strikes just days after the largest crude exporting nations in the world said they would not increase output
7:28AM ( 16 hours ago )
Global shares mixed, oil prices up, technology stocks fall
Global shares are mixed after the U.S. stimulus package passed the Senate over the weekend
4:11AM ( 19 hours ago )
Oil prices surge after attack on Saudi oil site
Oil prices pressed higher Monday after strikes on major oil facilities in Saudi Arabia, the world’s largest oil exporter, shook energy markets
3:59AM ( 20 hours ago )
AP Business - Financial Markets
The Latest: Oklahoma vaccine list to cover most in state
Oklahoma health officials plan to start offering coronavirus vaccines Tuesday to workers in a wide range of essential industries, immediately making a vast majority of Oklahomans eligible to receive a vaccine
6:19PM ( 5 hours ago )
$40M gender equality fund by Gates, Scott announce finalists
A gender equality philanthropic initiative spearheaded by Melinda Gates’ investment company, with support from MacKenzie Scott, has announced 10 project finalists for $40 million in funding slated to be awarded this summer
5:34PM ( 6 hours ago )
The Latest: Wyoming Gov. to lift mask mandate March 16
Wyoming Gov. Mark Gordon says the state will join a handful of others that have lifted mask-wearing mandates to limit the spread of the coronavirus
5:00PM ( 7 hours ago )
AP Business - Industries
Escalating violence raises pressure for Myanmar sanctions
The escalation of violence in Myanmar as authorities crack down on protests against the February 1 coup is adding to pressure for more sanctions against the junta
10:38PM ( 1 day ago )
Opponents suspect environmental racism in pipeline project
A planned oil pipeline that would run through Memphis, Tennessee, and into north Mississippi is getting opposition from environmentalists, activists and local politicians
10:14AM ( 1 day ago )
Escalating violence ups pressure for Myanmar sanctions
The escalation of violence in Myanmar as authorities crack down on protests against the February 1 coup is adding to pressure for more sanctions against the junta
1:11AM ( 1 day ago )
AP Business - Utilities
Explosive Harry, Meghan interview reverberates across globe
Prince Harry and Meghan’s explosive TV interview has divided people around the world, rocking an institution that is struggling to modernize with claims of racism and callousness toward a woman struggling with suicidal thoughts
11:57PM ( 7 minutes ago )
Trial for ex-cop charged in Floyd's death forges on, for now
The trial of a former Minneapolis police officer charged in the death of George Floyd is forging ahead with jury selection, even though a ruling from the Minnesota Court of Appeals could quickly halt the case and delay it for weeks
11:48PM ( 15 minutes ago )
Miles out at Kansas after LSU report revealed allegations
Les Miles is out as Kansas' head coach just days after he was placed on administrative leave amid sexual misconduct allegations from his tenure at LSU
11:43PM ( 21 minutes ago )
Trump policy that weakened wild bird protections is revoked
The Biden administration has reversed a policy imposed under President Donald Trump that drastically weakened the government’s power to enforce a century-old law protecting most U.S. bird species
11:25PM ( 39 minutes ago )
Deadline day arrives to decide fate of Georgia legislation
Georgia lawmakers reached a key deadline on Monday, which was crossover day in the General Assembly
11:22PM ( 41 minutes ago )