Asian shares are mixed after Wall Street retreated as investors were rattled by uncertainties brought by U.S. President Donald Trump
Asian shares were mixed on Friday after Wall Street retreated as investors were rattled by uncertainties brought by U.S. President Donald Trump.
U.S. futures were nearly unchanged and oil prices advanced.
Chinese markets declined for a second day. Hong Kong’s Hang Seng tumbled 2% to 23,733.02 after China kept its key lending rates unchanged. Traders have been unloading technology shares following recent gains.
The Shanghai Composite index lost 0.9% to 3,376.96.
In Tokyo, the Nikkei 225 added 0.5% to 37,933.13 as the markets reopened after a holiday on Thursday. Japan reported its core inflation rate fell less than forecast, partly boosted by a surge in rice prices due to a shortage of supplies.
Elsewhere in Asia, Korea’s Kospi picked up 0.1% to 2,643.59, while Australia’s S&P/ASX 200 rose by 0.4% to 7,947.30.
Bangkok’s SET gained 0.5% and the Taiex in Taiwan fell 0.4%.
On Thursday, the S&P 500 slipped 0.2% to 5,662.89, while the Dow Jones Industrial Average dipped less than 0.1 % to 41,953.32. The Nasdaq composite fell 0.3% to 17,691.63.
Wall Street has been swinging for weeks on a roller-coaster ride, as stock prices veer on uncertainty about what Trump’s trade war will do to the economy. Stocks got a boost Wednesday after the head of the Federal Reserve said the economy remains solid enough at the moment to leave interest rates where they are.
More data arrived Thursday to support that view. One report said slightly fewer U.S. workers filed for unemployment benefits last week than economists expected.
A separate report said sales of previously occupied homes were stronger last month than economists expected, while a third said manufacturing growth in the mid-Atlantic region appears to be better than economists expected.
Fed Chair Jerome Powell stressed on Wednesday that extremely high uncertainty is making it difficult to forecast what will happen next. It’s uncertainty not just about the trade war but also about the potential impact of moves to shrink the U.S. federal government.
The broad U.S. stock market was likely due for its recent drop, which took it more than 10% below its all-time high in just a few weeks after prices climbed much faster than corporate profits to make it look too expensive.
On Wall Street, Darden Restaurants climbed 5.8% after reporting profit for the latest quarter that matched analysts’ expectations. That was despite what the company behind Olive Garden, Ruth’s Chris Steak House and other restaurant chains called “a challenging environment.”
Accenture fell to one of the market’s larger losses Thursday even though the consulting and professional services company reported slightly better profit and revenue for the latest quarter than analysts expected. The worry is over the hit Accenture may take to revenue from the U.S. government as Elon Musk leads efforts to cut federal spending. The federal government accounted for 17% of Accenture’s North American revenue last fiscal year, and its stock sank 7.3%.
Also Thursday, Britain’s FTSE 100 fell 0.1% after the Bank of England kept its main interest rate unchanged.
In other dealings early Friday, U.S. benchmark crude oil gained 31 cents to $68.38 per barrel in electronic trading on the New York Mercantile Exchange.
Brent crude, the international standard, added 27 cents to $72.27 per barrel.
The U.S. dollar rose to 149.40 Japanese yen from 148.78 yen late Thursday. The euro fell to $1.0831 from $1.0854.
Source: abcNEWS
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