Saturday, December 4, 2021

Asian Stocks Mainly Fall After New Wall Street Records

TOKYO (AP) – Stocks in Asia mostly fell on Friday, with Chinese markets negatively impacted by concerns about developers.

Landmarks fell in Shanghai, Hong Kong, Tokyo and Seoul, but rose in Sydney and Taipei.

Unrest over problems in the real estate sector erupted after Kaisa Group, a Chinese real estate developer, announced that its Hong Kong-traded shares were suspended after the company failed to make payments for its guaranteed wealth products.

Tighter controls on borrowing by highly leveraged real estate companies shook markets after one of the largest companies, the Evergrande Group, was unable to pay off some of its debt.

The government is also tightening capital controls.

The Hong Kong Hang Seng Index fell 1.4% to 24,878.42. The Shanghai Composite Index lost 0.9% to 3493.88.

Tokyo’s Nikkei 225 fell 0.6% to 29,611.57, while South Korea’s Kospi fell 0.5% to 2,960.27. In Sydney, the S & P / ASX 500 rose 0.4% to 7,456.90.

On Thursday, the benchmark S&P 500 rose 0.4% to 4,680.06, extending its successful streak to its sixth day. The index saw a series of record closings, often on days when the market started with a dismal start.

The Dow Jones Industrial Average fell 0.1% to 36,124.23, completing a five-day winning streak for the blue-chip index, while the Nasdaq added 0.8% to 15,940.31.

The Russell 2000 Small Stock Index fell 0.1% to 2,402.43.

Despite the mixed result, recent market milestones underscore that traders remain in buying spirits, encouraged by solid earnings from companies and the Federal Reserve’s decision, at least for now, to only gradually begin phasing out policies aimed at stimulating U.S. economic growth while it was at in the agony of a pandemic recession.

On Wednesday, the Fed said it would begin cutting $ 120 billion in monthly bond purchases by $ 15 billion a month in the coming weeks. The central bank may decide to raise its short-term interest rate, which affects many consumer and commercial loans, from almost zero. Many market watchers have come to the conclusion that the Fed is cautiously cutting its support, which is good news for Wall Street.

Read Also:  Asian shares on Chinese developer, virus concerns

Investors continued to monitor the latest round of corporate earnings. Chipmaker Qualcomm jumped 12.7% after it gave investors an encouraging profit forecast and reported strong quarterly results. Other chip makers have also risen. Nvidia shares rose 12% and Advanced Micro Devices rose 5.3%.

The main investor concern in the last round of earnings was the impact of supply chain problems on corporate profits and operations. Video streaming company Roku fell 7.7% after it provided investors with a weak sales forecast and warned that supply chain problems were likely to persist in 2022.

Investors received encouraging information about the recovery of the labor market. The Labor Department said Thursday that the number of Americans who filed for unemployment benefits fell to another pandemic low last week, another sign of the labor market recovery from last year’s coronavirus recession. On Friday, the agency is to publish a more detailed employment report for October.

US benchmark oil prices rose 58 cents to $ 79.39 a barrel in electronic trading on the New York Mercantile Exchange after OPEC and allied oil producing countries decided to stick to their plan to prudently increase oil production every month even as prices rise and the world economy. thirsty for fuel.

The OPEC + Alliance, made up of OPEC members led by the Saudis and non-members led by Russia, has rebuffed pressure from US President Joe Biden to pump significantly more oil and lower gas prices for US drivers.

On Thursday, the US index fell $ 2.05 to $ 78.81.

Brent crude, the standard for international prices, rose 15 cents to $ 80.69 a barrel.

The US dollar fell to 113.65 Japanese yen from 113.75 Japanese yen. The euro remained unchanged at $ 1.1557.

Nation World News Desk
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