Asian stocks mixed ahead of US inflation data

Advertisement

Advertise with us

SINGAPORE (AP) — Asian stocks were mixed on Wednesday ahead of U.S. inflation data offering a glimpse at how the world’s largest economy is recovering.

Read this article for free:

or

Already have an account? Log in here »

To continue reading, please subscribe with this special offer:

All-Access Digital Subscription

$1.50 for 150 days*

  • Enjoy unlimited reading on winnipegfreepress.com
  • Read the E-Edition, our digital replica newspaper
  • Access News Break, our award-winning app
  • Play interactive puzzles
Continue

*Pay $1.50 for the first 22 weeks of your subscription. After 22 weeks, price increases to the regular rate of $19.00 per month. GST will be added to each payment. Subscription can be cancelled after the first 22 weeks.

Hey there, time traveller!
This article was published 10/08/2021 (365 days ago), so information in it may no longer be current.

SINGAPORE (AP) — Asian stocks were mixed on Wednesday ahead of U.S. inflation data offering a glimpse at how the world’s largest economy is recovering.

The Nikkei 225 in Tokyo rose 0.7% to 28,069.28 and the Shanghai Composite Index added 0.1% to 3,532.23. The Kospi in South Korea gave up 0.3% to 3,234.37, however.

Hong Kong’s Hang Seng was up 0.5% at 26,724.99. Sydney’s S&P-ASX 200 advanced 0.4% to 7,594.50.

A man walks past a bank's electronic board showing the Hong Kong share index at Hong Kong Stock Exchange Tuesday, Aug. 10, 2021. Asian shares were mixed Tuesday as optimism about a gradual global economic recovery from the coronavirus pandemic got tempered by worries over the variants spreading rapidly in some nations. (AP Photo/Vincent Yu)

The benchmark of New Zealand rose but that of Singapore and Indonesia fell.

Analysts are expecting the latest U.S. headline inflation rate, due Wednesday, to grow at a slower pace of 5.3% in July from a year earlier. This is slightly lower than June’s 5.4%.

“A higher-than-expected reading may suggest inflation being more persistent and increase the risk of an earlier tapering timeline from the Fed,” said Jun Rong Yeap of IG.

People walk past a bank's electronic board showing the Hong Kong share index at Hong Kong Stock Exchange Tuesday, Aug. 10, 2021. Asian shares were mixed Tuesday as optimism about a gradual global economic recovery from the coronavirus pandemic got tempered by worries over the variants spreading rapidly in some nations. (AP Photo/Vincent Yu)

Where the price increases lie matters, too. While the previous highlights were air travel fares and used cars, the larger determinant for inflation may be food and housing.

Traders will watch for the continued growth of food and housing prices, Yeap said.

They are also contending with the coronavirus delta variant’s spread in Asia, which has resulted in travel restrictions being reimposed in China. Parts of Japan, including Tokyo, the capital, remain under a state of emergency.

USA Women's Olympic Water Polo Goalkeeper Ashleigh Johnson holds her gold medal as he jumps, while posing for photos outside the New York Stock Exchange, before ringing the opening bell, Tuesday, Aug. 10, 2021. (AP Photo/Richard Drew)

Over on Wall Street, financial and industrial companies helped lift the market, amid a pullback in technology stocks.

The S&P 500 recovered from an early slip and added 0.1% to 4,436.75. The Dow Jones Industrial Average rose 0.5% to 35,264.67. The tech-heavy Nasdaq slipped 0.5% to 14,788.09.

Banks made some of the strongest gains as bond yields edged higher. Banks benefit from higher yields, which allow them to charge higher interest rates on loans. The yield on the 10-year Treasury rose to 1.35% from 1.31% late Monday.

USA Women's Olympic Water Polo gold medal goalkeeper Ashleigh Johnson chats with a pair of specialists on the the New York Stock Exchange trading floor, after she rang opening bell, Tuesday, Aug. 10, 2021. (AP Photo/Richard Drew)

In energy markets, benchmark U.S. crude lost 13 cents to $68.16 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the price standard for international oils, shed 12 cents to $70.51 per barrel in London.

The dollar rose to 110.64 yen from Tuesday’s 110.54 yen. The euro advanced to $1.1729 from $1.1727.

“A strong reading in the headline and core U.S. Consumer Price Index could keep supporting the USD in the short term,” Anderson Alves of ActivTrades said in a report.

“It might put some pressure on U.S. yields, which could change the global market flows for the weeks ahead as traders might have to review U.S. inflation expectations and reprice the Fed’s future actions,” he added.

Trader Edward Curran works on the floor of the New York Stock Exchange, Tuesday, Aug. 10, 2021. Stocks rose in morning trading on Wall Street Tuesday as energy companies and banks clawed back some of the ground they lost a day earlier. (AP Photo/Richard Drew)
Trader John Panin, left, works on the floor of the New York Stock Exchange, Tuesday, Aug. 10, 2021. Stocks rose in morning trading on Wall Street Tuesday as energy companies and banks clawed back some of the ground they lost a day earlier. (AP Photo/Richard Drew)
Trader Michael Conlon works on the floor of the New York Stock Exchange, Tuesday, Aug. 10, 2021. Stocks rose in morning trading on Wall Street Tuesday as energy companies and banks clawed back some of the ground they lost a day earlier. (AP Photo/Richard Drew)
People walk past a bank's electronic board showing the Hong Kong share index in Hong Kong, Wednesday, Aug. 11, 2021. Asian stocks were mixed on Wednesday ahead of U.S. inflation data offering a glimpse at how the world’s largest economy is recovering. Japan, Shanghai and Hong Kong were up, while South Korea and Singapore declined.(AP Photo/Vincent Yu)
People walk past a bank's electronic board showing the Hong Kong share index in Hong Kong Wednesday, Aug. 11, 2021. Asian stocks were mixed on Wednesday ahead of U.S. inflation data offering a glimpse at how the world’s largest economy is recovering. Japan, Shanghai and Hong Kong were up, while South Korea and Singapore declined. (AP Photo/Vincent Yu)
Report Error Submit a Tip

Advertisement

Advertise With Us

Business

LOAD MORE BUSINESS