mcloudyn.png
Monday June 14th, 2021 2:40AM

Asian shares mixed after US inflation jumps 5% in May

By The Associated Press
Related Articles
  Contact Editor

BANGKOK (AP) — Shares were mostly higher in Asia on Friday after the S&P 500 index notched another record high despite a surge in U.S. consumer prices in May.

Shanghai fell, Tokyo was nearly unchanged, while shares rose in Hong Kong, Seoul and Sydney. U.S. futures were marginally lower.

On Thursday, Wall Street logged gains while bond yields mostly fell despite the much-anticipated report showing consumer prices rose 5% in May, the biggest year-over-year increase since 2008 and more than economists had expected.

Investors also reacted positively to more data that showed continued improvement in the labor market.

The worry is that if signs of inflation persist, central banks may move to withdraw stimulus from the economy to ease price pressures.

But investors are still buying into the Federal Reserve's stance that the current bout of inflation is transitory, said Jeffrey Halley of OANDA.

“Financial markets have long raised a selective use of facts to an art form," Halley said in a report. “Although the US inflation measures rose once again and slightly above forecast, the actual increases were less than those recorded in April."

Taking all factors into consideration, “that was all the street needed to return to its buy-everything happy place."

In Asia, where China-U.S. tensions are among many factors weighing on sentiment, the mood was less ebullient.

Tokyo's Nikkei 225 index was unchanged, at 28,948.73, while the Hang Seng in Hong Kong rose 0.4% to 28,847.02. The Kospi in Seoul gained 0.8% to 3,249.32, while the Shanghai Composite index slipped 0.5% to 3,593.20.

India's Sensex gained 0.3%.

On Thursday, the S&P 500 gained 0.5% to 4,239.18, just beating its previous all-time high set on May 7th. The Dow Jones Industrial Average edged up 0.1% to 34,466.24. The Nasdaq Composite rose 0.8%, to 14,020.33, while smaller company stocks lagged the broader market. The Russell 2000 index fell 0.7% to 2,311.41.

A significant share of May's rise in consumer prices was tied to the sale of used cars, which is largely attributed to purchases by rental car companies beefing up their fleets as people return to traveling.

Bond yields initially rose after the inflation data, then fell broadly by late afternoon. The yield on the 10-year Treasury note slipped to 1.43% from 1.45% late Thursday.

Stocks have been meandering all week as investors waited for the update on inflation.

Investors will get to see next week how the Fed is reading the latest inflation barometer and what monetary policy changes, if any, the central bank may consider. The Fed's policymaking committee is due to deliver its latest economic and interest rate policy update next Wednesday.

Markets will also be tuning in this weekend for any developments at the summit of the Group of Seven in Britain. At the top of the leaders’ agenda is helping countries recover from the coronavirus pandemic, which has killed more than 3.7 million people and wrecked economies.

The G-7 leaders are meeting for three days at a British seaside resort. It's the first such gathering since before the pandemic.

In other trading, benchmark U.S. crude oil shed 7 cents to $70.22 per barrel in electronic trading on the New York Mercantile Exchange. It gained 33 cents to $70.29 per barrel on Thursday.

Brent crude, the international standard, lost 5 cents to $72.47 per barrel.

The U.S. dollar was trading at 109.39 Japanese yen, up from 109.42 yen. The euro rose to $1.2184 from $1.2176.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Financial Services
© Copyright 2021 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Crime leads voter concerns as NYC mayoral primary approaches
The Democratic primary race for New York City mayor is nearing the finish line with a surge in shootings pushing public safety to the top of some voters' concerns
1:00AM ( 24 minutes ago )
Photos show Chinese rover on dusty, rocky Martian surface
The dusty, rocky Martian surface and a Chinese rover and lander bearing small national flags were seen in photos the rover took on the red planet
12:58AM ( 25 minutes ago )
Olympic, professional boxing champ Shields wins MMA debut
Claressa Shields won her MMA debut with a third round TKO victory over Brittney Elkin
12:55AM ( 29 minutes ago )
Associated Press (AP)
Senators eye $579B in new infrastructure spending, $1T plan
A bipartisan group of senators is eyeing an infrastructure deal with $579 billion in new spending as part of a $1 trillion total package
12:20AM ( 1 hour ago )
At El Salvador's Bitcoin Beach, a glimpse of crypto economy
After El Salvador’s congress made the bitcoin legal tender this week, eyes turned to the rural fishing village of El Zonte on the Pacific coast
12:15AM ( 1 hour ago )
Trump DOJ seized data from House Democrats in leaks probe
The Justice Department under former President Donald Trump seized data from the accounts of at least two members of the House Intelligence Committee in 2018 as part of an aggressive crackdown on leaks related to the Russia investigation and other national security matters
12:09AM ( 1 hour ago )
AP Business
Fight over Canadian oil rages on after pipeline's demise
The Keystone XL is dead after a 12-year attempt to build the oil pipeline
7:17PM ( 6 hours ago )
New federal COVID-19 safety rules exempt most employers
The Biden administration has exempted most employers from long-awaited rules for protecting workers from the coronavirus
6:44PM ( 6 hours ago )
The Latest: Biden presents UK's Johnson with a US-made bike
President Joe Biden has given British Prime Minister Boris Johnson a new bicycle
6:44PM ( 6 hours ago )
AP Business - Economy
No more kidney dialysis? Lebanese hospitals issue warning
Hospitals in Lebanon are warning that they may be forced to suspend kidney dialysis amid severe shortages in supplies
11:02AM ( 14 hours ago )
Lebanese hospitals warn of dangerous shortages in supplies
Hospitals in Lebanon are warning that they may be forced to suspend kidney dialysis amid severe shortages in supplies
10:38AM ( 14 hours ago )
World shares mixed as investors await US price data, G7
Global markets are mixed as investors await key U.S. inflation data and a gathering of the leaders of the Group of Seven major economies
5:25AM ( 19 hours ago )
AP Business - Financial Markets
US hits alleged financing ring linking Yemen rebels, Iran
The U.S. has leveled sanctions against a Yemeni network that it alleges was working with Iran’s Revolutionary Guard to transfer tens of millions of dollars to Yemen’s Houthi rebels
6:53PM ( 6 hours ago )
Dog ejected from vehicle in Idaho crash found herding sheep
A dog who vanished for two days after being ejected from a vehicle during a car accident has been found apparently doing the job it was bred to do — herding sheep
6:46PM ( 6 hours ago )
Celebrations (and questions) greet US vaccine donation plan
U.S. plans to donate 500 million more COVID-19 vaccines to developing countries are being met with both celebration and hesitation
6:30PM ( 6 hours ago )
AP Business - Industries
Europe leaves stimulus running hot ahead of recovery
The European Central Bank is leaving its key pandemic support for the economy running full blast even as the economy shows signs of recovery thanks to lower virus cases and fewer restrictions on activity in the 19 countries that use the euro currency
11:01AM ( 14 hours ago )
EU launches proceedings over top German court's ECB ruling
The European Union has launched proceedings against Germany over a ruling by the top German court last year on a European Central Bank bond-buying program
8:56AM ( 1 day ago )
Europe's stimulus likely to keep running as economies reopen
The European Central Bank is likely to say it's too early to withdraw its stimulus at its meeting on Thursday
6:46AM ( 1 day ago )
AP Business - Financial Services
Crime leads voter concerns as NYC mayoral primary approaches
The Democratic primary race for New York City mayor is nearing the finish line with a surge in shootings pushing public safety to the top of some voters' concerns
1:00AM ( 24 minutes ago )
Photos show Chinese rover on dusty, rocky Martian surface
The dusty, rocky Martian surface and a Chinese rover and lander bearing small national flags were seen in photos the rover took on the red planet
12:58AM ( 25 minutes ago )
Olympic, professional boxing champ Shields wins MMA debut
Claressa Shields won her MMA debut with a third round TKO victory over Brittney Elkin
12:55AM ( 29 minutes ago )
Lucky number: Biden is 13th US president set to meet queen
Joe Biden will become the 13th American president to meet Queen Elizabeth II
12:48AM ( 35 minutes ago )
China says US revoking of China apps ban a 'positive step'
China’s Ministry of Commerce has said a U_S_ move to revoke Trump administration’s executive orders intended to ban apps like TikTok and WeChat was a “positive step.”
12:40AM ( 43 minutes ago )