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Asian stocks mixed after Wall St. down, China’s manufacturing industry up

BEIJING –

Asian stock markets were mixed on Thursday after the US economy contracted and China reported stronger factory activity.

Shanghai and Hong Kong rose, while Tokyo and Seoul fell. Oil prices increase.

Wall Street’s benchmark S&P 500 index fell 0.1% on Wednesday after data showed the US economy shrank in the first quarter amid high inflation and weakening consumer confidence.

Investors are worried about signs that the world’s largest economy could slip into recession as interest rate hikes are used to cool rising inflation.

“Demand for equities could continue to decline for at least the next four to six months as rate hikes hit the US economy,” Stephen Innes of SPI Asset Management said in a note.

The Shanghai Composite Index rose 1% to 3,394.39 after an official monthly gauge of factory activity increased and new orders improved. The Hang Seng Index in Hong Kong rose 0.1% to 22,025.14.

The Nikkei 225 in Tokyo fell 0.9% to 26,651.05 after June industrial production fell 7.2% month-on-month. That was the steepest drop since the start of the coronavirus pandemic in early 2020.

Kospi in Seoul fell 0.7% to 2,361.93 and Sydney’s S&P-ASX 200 fell 0.8% to 6,644.00.

The S&P 500 index slid to 3,818.83 after official data showed economic activity fell 1.6% at an annualized rate for the three months ending in March. It was the first contraction since Q2 2020 in the depths of the pandemic.

The US benchmark is down 7.6% on the month and 20% from its January 3 peak.

The Dow Jones Industrial Average rose 0.3% to 31,029.31. The Nasdaq composite fell less than 0.1% to 11,177.89.

“Not only is a recession the base case, but I think it may have already begun,” said Liz Ann Sonders, investment strategist at Charles Schwab.

Federal Reserve Chairman Jerome Powell, speaking at the European Central Bank meeting in Portugal, said on Wednesday that there is “no guarantee” that inflation can be tamed without doing so. affect the job market.

The global economy is being shaken by anti-virus measures in China, shutting down Shanghai and other industrial hubs, and Russia’s invasion of Ukraine, which has pushed up the prices of oil, wheat and other commodities. other goods go up.

The monthly Purchasing Managers’ Index released on Thursday by China’s statistics agency and an industry group rose to 50.2 in June from 49.6 on a 100-point scale, where numbers above 50 indicate see an increase in activity. This comes after factories, shops and offices in Shanghai and other cities were allowed to reopen.

In energy markets, benchmark US crude rose 35 cents to $110.13 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell $1.98 on Wednesday to $109.78. Brent crude, the base price for international oil trading, rose 50 cents to $112.95 a barrel in London. It fell $1.72 in the previous session to $116.26. each carton.

The dollar rose to 136.62 yen from Wednesday’s 136.54 yen. The euro fell from $1.0523 to $1.0442.

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