Shares are mostly higher in Asia after a slide for market superstar Nvidia helped pull U.S. stock indexes below their latest records
Shares in Asia were mostly higher on Tuesday as Chinese shares were buoyed by an apparent shift in Beijing toward easier credit and other forms of stimulus for the sluggish economy.
Shares in market superstar Nvidia fell 0.6% in after-hours trading extending a 2.6% loss after China said it’s investigating the company over suspected violations of Chinese anti-monopoly laws.
The Shanghai Composite index surged 1.6% to 3,456.12 while Hong Kong’s Hang Seng was up 1%, at 20,618.18.
At a meeting announced late Monday, top Chinese leaders agreed on a “moderately loose” monetary policy for the world’s second-largest economy. That’s the first move in 10 years away from a more cautious, “prudent” stance. A major planning meeting expected Wednesday could also bring more stimulus for the Chinese economy.
Tokyo’s Nikkei 225 gained 0.5% to 39,335.74 while the Kospi in South Korea jumped 2.3%, recovering some of its recent losses as the country’s recent political turmoil simmered on.
On Tuesday, South Korean prosecutors were seeking to formally arrest the former defense minister alleged to have colluded with President Yoon Suk Yeol in imposing martial law last week, as both men are being investigated on rebellion and other charges.
Taiwan’s Taiex shed 0.8% as the government said China’s military appeared to be preparing for widely anticipated drills in response to a recent visit by its president, Lai Ching-te’s visits to Hawaii and Guam. Taiwan’s defense ministry said Monday that it has detected Chinese naval and coast guard ships entering the Taiwan Strait and the western Pacific and that China had restricted airspace along its southeast coast through Wednesday.
The moves ratchet up tensions after U.S. President-elect Donald Trump said he would not commit to defending Taiwan if China were to invade during his presidency.
Elsewhere in the region, Australia’s S&P/ASX 200 slipped 0.4% to 8,389.30. Markets in Thailand were closed for a holiday.
On Monday, the S&P 500 fell 0.6% to 6,052.85, coming off its 57th all-time high of the year so far. The Dow Jones Industrial Average dipped 0.5% to 44,401.93, and the Nasdaq composite pulled back 0.6% to 19,736.69.
Nvidia’s decline was by far the heaviest weight on the S&P 500. It has skyrocketed to become one of Wall Street’s most valuable companies because its chips are driving much of the world’s move into artificial-intelligence technology. That gives its stock’s movements more sway on the S&P 500 than nearly every other.
U.S.-listed stocks of several Chinese companies climbed, including a 12.4% jump for electric-vehicle company Nio and a 7.4% rise for Alibaba Group. Stocks in Shanghai.
The week’s highlight for Wall Street will arrive midweek when the latest updates on inflation arrive. Economists expect Wednesday’s report to show consumer inflation was little changed last month. A separate report on Thursday, meanwhile, could show an acceleration in inflation at the wholesale level.
They’re the last big pieces of data the Federal Reserve will get before its meeting next week on interest rates, where it is expected to cut its main interest rate for the third time this year.
The Fed has been easing its main interest rate from a two-decade high since September help the slowing jobs market, after bringing inflation nearly down to its 2% target.
In the oil market early Tuesday, a barrel of benchmark U.S. crude gave up 44 cents to $67.93 per barrel. It rallied 1.7% Monday to settle at $68.37 following the overthrow of Syrian leader Bashar Assad, who sought asylum in Moscow after rebels. Brent crude, the international standard, lost 39 cents to $71.75 per barrel. On Monday it added 1.4% to $72.14 per barrel.
The price of gold rose 0.3% to $2,693.10 per ounce after gaining 1% a day earlier amid the uncertainty created by the end of the Assad family’s 50 years of iron rule.
The U.S. dollar fell to 151.19 Japanese yen from 151.22 yen. The euro rose to $1.0557 from $1.0555.
Source: abcNEWS
Recent Comments