Asian shares mostly fell on Wednesday despite a rally on Wall Street following virtual talks between US President Joe Biden and China’s Xi Jinping.
Japan’s benchmark Nikkei 225 fell 0.4% to 29,688.33. South Korea’s Kospi fell 1.2% to 2,962.42. Australia’s S&P/ASX 200 lost 0.7% to 7,369.90. Hong Kong’s Hang Seng fell 0.4% to 25,621.91, while the Shanghai Composite added 0.5% to 3,537.32.
Video chats between Biden and Xi late Monday, US time appeared to signal a step in the right direction, but they failed to yield any significant steps toward resolving longstanding trade disputes. trade and other issues.
Yeap Jun Rong, IG market strategist in Singapore, said: “Any concrete developments from the meeting are yet to be seen, but the amicable approach so far in dealing with the company’s issues is yet to be seen. Both sides help reduce the risk of political tension in the market,” said Yeap Jun Rong, IG market strategist in Singapore.
Shares closed higher on Wall Street as investors looked at steady earnings reports from major retailers and a surprisingly strong report on consumer spending.
The government reports that the majority of Americans slashed prices higher last month and increased their spending at retail and online stores. The Commerce Department said retail sales rose 1.7 percent in October. That was the biggest increase since March and up from 0.8% the previous month.
The S&P 500 gained 0.4% to 4,700.90 and is sitting just below the record set on Nov. 8. The Dow Jones Industrial Average rose 0.2%, to 36,142.22. Nasdaq rose 0.8% to 15,973.86.
Tech stocks have had a big impact on the benchmark S&P 500 index, with slightly more advancers than losers. Chip maker Qualcomm rose 7.9%.
A wide range of companies that rely on consumer spending have reaped substantial profits. Home Depot rose 5.7% after the home improvement retailer reported soaring sales and steady profit for the third quarter amid a hot housing market. The results also lifted competitor Lowe’s by 4.2%.
Some companies rely on increased consumer spending. The Etsy online crafts market grew 5.1%. Nike rose 1.8% while Coach and Kate Spade’s mother Tapestry gained 1.5%.
The nation’s largest retailer, Walmart, also reported solid financial results while raising its profit forecast, but the stock fell 2.5% and delivered some of the big gains it has made in the past year. past few weeks.
Several other major retailers will release their latest financial results this week. Target reports results on Wednesday and Macy’s results on Thursday.
Healthcare companies also increased. Media companies and manufacturers of household and other consumer goods have lagged behind in the market.
Investors received another encouraging economic update from the Federal Reserve, which said industrial production rebounded in October with a 1.6% gain. The increase follows a 1.3% drop in September.
Wall Street is closely monitoring the latest economic reports for more clues about how businesses and consumers are dealing with rising inflation. Companies have raised prices as they face higher raw material costs and supply chain problems. Consumers are willing to pay higher prices for many goods, although analysts fear that consumers could end up pulling back on spending due to inflation.
Rising concerns about inflation hit the broader market last week after a sharp rally that lasted several weeks as companies reported mostly steady earnings. The latest earnings round is coming to an end, and the market has few odd economic events or reports to focus on at the end of the year.
In energy trading, the price of U.S. benchmark crude fell 51 cents to $80.25 a barrel in electronic trading on the New York Mercantile Exchange. It lost 12 cents on Tuesday to $80.76 a barrel. Brent crude, the international standard, lost 47 cents to $81.96 a barrel.
In currency trading, the US dollar strengthened to 114.85 Japanese yen from 114.80 yen. It has risen from 110 yen since September. The euro fell from 1.1322 USD to 1.1303 USD.