Asian stocks advance after modest gains on Wall St
Stocks were mostly higher in Asia on Friday after Wall Street benchmarks managed to close largely higher.
Shares rose in Tokyo, Hong Kong, Seoul and Sydney early in the session. Shanghai was flat.
In China, a large communist party The meeting ended on Thursday with a resolution paving the way for President Xi Jinping to remain the top leader for life. The decision was expected.
Meanwhile, although the Chinese economy has slowed after rebounding from a pandemic slowdown, the record $ 139.1 billion spent by Chinese shoppers on the annual Singles Day on November 11 this year shopping extravagance suggested potential for resilient retail demand.
Shares of Chinese real estate developers rose this week following reports that regulators were considering easing restrictions on borrowing, fueling fears of possible defaults and depressed sales.
Regulators want to allow more flexible funding so developers can sell assets and pay off debt, Chinese news reports say. The government has yet to announce any change in restrictions imposed as part of efforts to reduce the debt that Chinese leaders say is dangerously high.
Official data also shows a rebound in mortgage lending in October, suggesting that China’s central bank is keen to ensure adequate financing for home purchases, which is considered relatively safe, economic news magazine Caxin said, citing an Citic Securities study.
The Hong Kong Hang Seng Index gained 0.2% to 25,302.94 while the Shanghai Composite Index was unchanged at 3,532.57.
In Tokyo, the Nikkei 225 jumped 1.1% to 29,589.43, while South Korea’s Kospi gained 1.4% to 2,966.09. In Sydney, the S & P / ASX 200 gained 0.9% to 7,447.80.
The latest streak of mostly solid corporate earnings is coming to an end after helping the wider market rise for weeks and hit a series of record highs. Inflation concerns, however, rocked investors throughout the week.
Recent data paints “a picture of a booming economy with widespread pricing pressures,” Oanda’s Craig Erlam said in a report.
“The Fed may ultimately be correct in its judgment that the pressures will naturally ease over time as they are largely driven by temporary factors,” he said. “But how long can they afford to sit idly by and watch inflation drastically exceed their target?” Are they really that confident in their assessment? The pressure is intensifying. â
The benchmark S&P 500 is on track for its first weekly loss in six weeks. On Thursday it rose 0.1% to 4,629.27. The Dow Jones Industrial Average fell 0.4% to 35,921.23, largely due to a sharp drop in entertainment firm Walt Disney, which fell 7.1% after reporting gains in slower subscribers on its streaming channel and weak fourth quarter financial results.
The Nasdaq rose 0.5% to 15,704.28.
Smaller company stocks outperformed the market as a whole, a sign that investors were confident about economic growth. The Russell 2000 rose 0.8%.
Inflation fears have pushed bond yields up broadly. The 10-year Treasury yield stood at 1.57% Thursday morning in Asia, compared to 1.55% Wednesday night. Bond markets were closed Thursday for Veterans Day.
The companies warned they were being stifled by rising raw material costs and supply chain issues. Consumers are already facing higher costs for essential items such as food, rent, cars, and fuel oil. Analysts fear cutting spending on discretionary items to focus on the essentials, which could then hamper the broader economic recovery.
Higher inflation is raising expectations that the Federal Reserve and other central banks will raise short-term interest rates deployed during the pandemic to encourage lending and spending. The Fed has already started cutting its bond purchases to keep long-term rates low.
In other exchanges, benchmark US crude oil fell 60 cents to $ 80.99 per barrel in electronic trading on the New York Mercantile Exchange. It gained 25 cents to $ 81.59 a barrel on Thursday.
Brent crude, the basis of international pricing, fell 64 cents to $ 82.23 a barrel.
The dollar fell from 114.07 yen to 114.26 Japanese yen. The euro slipped to $ 1.1442 from $ 1.1451.
AP Business Writer Joe McDonald in Beijing contributed.