BANGKOK (AP) – Shares fell on Friday in most Asian markets after China reported a stronger-than-expected rise could prompt authorities to act to cool down inflation.
Japan’s standard Nikkei 225 bounced back after falling a day earlier. Shares fell in Hong Kong, Shanghai, Sydney and Seoul.
Shares closed higher on Wall Street on Thursday, thanks to the profits of major tech companies benefiting from lower bond yields. But the rise in job applications has reduced some of the buying enthusiasm.
China reported that Consumer prices increased in March fuel prices soared while production prices rose at the fastest pace in more than 4 years.
The consumer price index rose 0.4% in March from a negative 0.2% in February, due to a nearly 12% increase in fuel prices from a year earlier. Manufacturers’ prices were up 4.4% from a year earlier.
Inflation reflects increased demand as the world’s leading Chinese economy recovers from a pandemic. Fears that stronger growth could spur inflation that regulators in many major economies would then cool down, in part by raising interest rates, have changed the market over the past few months.
Plus, a new round of US sanctions, Jeffrey Halley of Oanda said this time against the seven Chinese supercomputer manufacturers, has sparked fears of a trade conflict between the two biggest economies.
“Asian markets are once again taking a more conservative stance today. Geopolitics are never far from the surface, even if it is often lost in the global recovery noise, ”Halley said in a report.
Shanghai Composite Index
0.7% loss and Hang Seng in Hong Kong
also decreased by 0.7%. Australia’s S&P / ASX 200
dropped 0.2% and Kospi
in Seoul down 0.2%.
Japan’s Nikkei 225
increase by 0.5%.
Shares of Sony Corp.
2.7% increase after the company signed an exclusive movie distribution contract with Netflix
On Thursday, the S&P 500 index
rose 0.4% to 4,097.17, another record high following records set on Monday and Wednesday. Dow Jones industrial average
increased by 0.2% to 33,503.57. The tech-heavy Nasdaq Composite
increased 1% to 13,829.31.
Shares of small companies, which have dominated the broader market this year, also have a good performance. Russell 2000 Index
of smaller firms rose 0.9% to 2,242,60. The index has risen 13.6% so far this year, while the S&P 500, which tracks major companies, is up 9.1%.
Stocks benefited this week as bond yields, which have been steadily rising, have retreated from their highs reached earlier this month.
The yield on 10-year US Treasury bonds
which affects the interest rate on mortgages and other loans, fell to 1.63% from 1.65% at the end of Wednesday. It was as high as 1.75% on Monday.
That drop in yields has put pressure on some tech stocks, which have been slipping in the past few months as yields have skyrocketed, making them look expensive. The sector also witnessed volatile trading as investors channeled more money into companies benefiting from the economic recovery.
1.9% pink, Microsoft
1.3% increase and Amazon
Investors are showing cautious optimism about the economic recovery, especially in the US, where Vaccine distribution is on the rise and President Joe Biden got promoted duration for states to deliver doses to all adults by April 19.
But it is clear that the recovery has a long way to go. The number of Americans applying for unemployment benefits last week rose again last week, as many businesses remained closed or partially closed due to the pandemic.
In his address to the International Monetary Fund on Thursday, Federal Reserve Chairman Jerome Powell said Several factors are putting the country “on the right track to allow the economy to fully reopen soon”.
In another transaction, US standard crude oil
rose 11 cents to $ 59.71 a barrel in electronic trading on the New York Mercantile Exchange. It lost 17 cents to $ 59.60 on Thursday. Brent Crude Oil
international standard, down 2 cents to 63.18 USD.
The US dollar increased to 109.32 Japanese yen
from 109.25 yen. Euro
down to $ 1,1904 from $ 1,1917.