BANGKOK (AP) – Shares were mostly lower in Asia on Thursday after a mixed Wall Street meeting as losses from technology and industrial companies offset other gains.
A modest victory was achieved in Shanghai after reopening after the Lunar New Year holiday. Shares fell in Tokyo, Hong Kong and Sydney.
Ten-year government bond yields remained close to a year-on-year high of 1.27%. Bond rates have risen as the recovery from the pandemic is expected to raise inflation higher, and this has corrected buying enthusiasm as investors are selling to lock in recent gains.
The U.S. Department of Labor announced on Wednesday that U.S. wholesale prices rose a record 1.3% in January due to large increases in health care and energy prices. The higher-than-expected increase was the largest one-month profit in 2009.
To highlight the signs of recovery, the U.S. Department of Commerce said seasonally adjusted U.S. retail sales grew 5.3% in January from the previous month, the largest increase since June and significantly higher than expected.
Optimism that the introduction of coronavirus vaccines will lay the groundwork for stronger economic growth in the second half of this year has raised shares.
Shanghai Composite Index SHCOMP,
rose 0.4% to 3669.42 and S & P / ASX 200 XJO,
at the edge 0.1% higher, to 6893.10. Japanese Nikkei 225 NIK,
lost 0.2% to 30,230.63, while Hang Seng HSI
In Hong Kong, 1.2 percent was shed to 30,723.83. In South Korea Kospi 180721,
gave up 1.2 percent to 3097.20.
Ten years of Treasury TMUBMUSD10Y return
fell from a late Wednesday average of 1.27 per cent to 1.28 per cent, close to a year-high. The rise in bond yields has raised concerns about the possibility of higher inflation, but it has also been a sign that the economic growth outlook remains good.
Wednesday S&P 500 SPX,
slipped from less than 0.1 percent to 3,931.33 after an early profit recovery. Technically heavy Nasdaq Composite COMP,
decreased by 0.6% to 13,965.49.
Dow Jones Industrial Average DJIA,
rose 0.3% to 31,613.02, the second record high. The modest pick was largely due to the profits of Verizon Communications and Chevron, which rose, according to Warren Buffett’s Berkshire Hathaway, after making significant new investments in them in the second half of last year.
Small-cap stocks gained a larger share, with the Russell 2000 index RUT,
the share of smaller firms slipped 0.7 percent to 2,256.11.
Energy prices rose again, which rose sharply the day before due to the frost that has affected much of the United States
US reference crude oil CL.1,
collected 59 cents to $ 61.73 a barrel in e-commerce on the New York Stock Exchange. It rose to $ 1.09-61.14 a barrel on Wednesday. Brent crude oil BRN00,
The international standard rose 80 cents to $ 65.14 a barrel.
Strong retail sales data seemed to reinforce the perception of accelerating inflation even before the Biden administration implemented the proposed $ 1.9 trillion stimulus package and other spending aimed at putting the economy back on a solid footing.
This may eventually lead the central bank to reconsider its current policy of keeping interest rates very low.
The minutes of the Fed’s January political meeting, released on Wednesday afternoon, showed that the central bank believed the pandemic would still pose significant risks to the economy. The protocol also reflected widespread support from Fed officials to keep interest rates low to boost the economy and help millions of Americans get their lost jobs back.
Fed Chairman Jerome Powell has warned that inflation may accelerate for some time in the coming months as the country opens up. But he and many private economists believe this is only a temporary rise and not a sign that inflation is going out of control.
Last month’s rise in retail sales was largely due to $ 600 incentive inspections conducted on most Americans in late December and early January. The data shows that Americans affected by the recession are eager to spend money on necessities and not save money – which is the goal of incentive checks.
That possibly means that additional incentives, likely in the form of $ 1,400 checks in the $ 1.9 trillion recovery plan, are likely to provide the necessary stimulus to the economy.
US Dollar USDJPY,
slipped to 105.85 Japanese Yen from 105.89 Yen. Euro EURUSD,
decreased to $ 1.2039 from $ 1.2042.