Asian stocks mixed after late fall on Wall Street

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People wearing face masks walk past the electronic board of a bank displaying the Hong Kong stock index in Hong Kong on Tuesday, November 23, 2021. Asian stocks were mixed on Tuesday after a late decline left major indices of Wall Street mainly down. (AP Photo / Kin Cheung)

PA

Asian stocks were mixed on Tuesday after a late drop left major Wall Street indices down.

Tokyo was closed on Tuesday for a public holiday. Hong Kong and Seoul fell while Shanghai rose slightly.

Market participants appeared relieved to learn that President Joe Biden will appoint Jerome Powell to a second four-year term as Federal Reserve Chairman, a vote of confidence in Powell’s handling of central bank policies during the disruption brutal events caused by the coronavirus pandemic.

Hong Kong’s Hang Seng lost 1.1% to 24,669.59 and Seoul’s Kospi lost 0.5% to 2,997.33. In Sydney, the S & P / ASX 200 climbed 0.8% to 7,410.60 and the Shanghai Composite Index gained 0.2% to 3,588.77.

Shares rose in India but fell in Taiwan.

“With Japan on vacation today, the price action in US markets is repeating itself widely in Asia. Technology indices are suffering as those with more traditional weights in resources, banks and real estate hold up, ”Oanda’s Jeffrey Halley said in a comment.

Investors are watching the Fed closely to see if pressure from rising inflation is prompting it to step up plans to cut bond purchases and increase its benchmark interest rate.

“Powell gets the green light is a sign that Biden is staying the course on monetary policy and the Fed is gradually moving towards policy normalization,” said Brad McMillan, chief investment officer for Commonwealth Financial Network. “Overall, the Fed will continue to be a force for monetary stability.”

Still, a late-afternoon sales explosion derailed the market from another all-time high on Monday.

The S&P 500 fell 0.3% to 4,682.94. The Dow Jones gained less than 0.1% to 35,619.25. The highly technological Nasdaq lost 1.3% to 15,854.76.

Small business shares also fell. The Russell 2000 Index fell 0.5% to 2,331.35.

Bond yields rose sharply following the massive sell-offs. The 10-year Treasury yield fell from 1.54% Friday night to 1.63%.

Higher Treasury yields make the more expensive areas of the market, like technology stocks, less attractive, which may explain why there were more equity sales towards the end of the day as the bond market moved. .

With rising inflation weighing on the recovery from the pandemic, the Federal Reserve is starting to cut bond purchases that have helped keep interest rates low to support the economy and markets.

More than 55% of S&P 500 stocks rose on Monday, but losses at large technology and communications companies outpaced gains elsewhere in the benchmark. Chipmaker Nvidia slipped 3.1% and Netflix fell 2.9%.

Energy companies took a hard hit as US crude oil prices rose 0.9%.

US benchmark crude oil fell 83 cents to $ 75.92 per barrel in electronic trading on the New York Mercantile Exchange on Tuesday.

Brent crude, the standard for international prices, fell 61 cents to $ 79.09 a barrel.

The US dollar climbed to 115.08 Japanese yen from 114.88 yen on Monday night. The euro edged up to $ 1.1239 from $ 1.1237.

Markets in the United States will be closed Thursday for the Thanksgiving holiday. They will also close early Friday.


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