Asian stocks rise, trading in China closes for national holiday

TOKYO: Asian stocks rose on Friday amid mixed signals for investors, including rising energy prices and easing of Covid-19 restrictions in China.
Trade was closed in China for the Dragon Boat Festival, a national holiday. Excited by an overnight rally on Wall Street, benchmarks were high in the rest of the region.
Market players keep a close eye on US non-farm employment data as well as a lot of economic data later in the day. Japan Next week This OPEC The meeting, in which the oil-producing nations decided to boost some production, failed to significantly stabilize energy prices.
“It would be an understatement to say that the outcome of the OPEC meeting was disappointing,” said Stephen Innes, managing partner at SPI Asset Management.
Japan and the United States signed research on the “Beef Safeguard” mechanism under the US-Japan Trade Agreement, which will help American beef producers meet Japan’s growing demand for high-quality beef. Both sides said the deal would reduce the likelihood of Japan imposing guard duties on US beef. It happened in early 2021.
The United States and Japan are demonstrating our commitment to working together on shared priorities to achieve tangible, economically meaningful results for our people, “said the US Trade Representative. Catherine Tai.
Japan’s benchmark Nikkei 225 rose 1.1% in morning trading to 27,712.43. Australia’s S&P / ASX 200 rose 0.7% to 7,226.70, while South Korea’s Kospi rose 0.4% to 2,668.95.
Stocks on Wall Street overcame a volatile start to broadly higher closures on Thursday, as key indicators outweighed losses at the start of the holiday-short week.
The S&P 500 rose 1.8% to 4,176.82, with more than 85% of the stock in the benchmark index notching profit. The Dow Jones Industrial Average rose 1.3% to 33,248.28, while the Nasdaq rose 2.7% to 12,316.90.
Technology stocks, whose high values ​​push the broader market higher or lower, accounted for the bulk of Thursday’s rally. Chipmaker Nvidia rose 6.9% and software maker Adobe rose 5.5%.
Communication stocks, companies that rely directly on consumer spending and some large industrial companies have acquired land. Facebook parent meta platforms grew 5.4%, Expedia Group 6.3% and Boing 7.5%.
Shares of the smaller company rose, signaling confidence in economic growth. Russell 2000 rose 2.3% to 1,897.67.
Trading has stalled in recent days as investors are worried about inflation and rising interest rates are being used by the Federal Reserve to fight it. Thursday’s market rally may be triggered by a report showing private sector recruitment, which has fallen far short of economists’ forecasts.
“The private parole report was very weak,” he said Tom Hanlin, National Investment Strategist at US Bank Wealth Management. “It’s probably an environment where people are looking for poor data that gives them little hope Fed (Rate hike) will stop in September. ”
Rising energy prices are fueling inflation, which is already at its highest level in four decades. According to the Motoring Club Federation AAA, the price of US gasoline reached a record high on Thursday, with the average price of a pump being $ 4.71 per gallon.
Investors focus on the balance between inflation, rising interest rates and economic growth. Some economic reports on Wednesday boosted expectations that the Fed would aggressively raise interest rates. Wall Street is concerned that the Fed could slow economic growth too much and potentially send the economy into recession.
But on Thursday, payroll processor ADP reported that recruitment by private US companies increased by only 128,000 in May. That’s down from the expectations of 302,000 higher economists, according to FactSet.
Wall Street will get another glimpse of the health of the broader US economy on Friday when the Labor Department releases its employment report for May. The job market was initially slow to recover from the effects of the virus epidemic, but has returned strongly with low unemployment and plenty of job postings.
Meanwhile, high inflation eats away at corporate profits, while war in Ukraine and COVID-19 sanctions in China also weigh on markets.
Bond yields were relatively stable. Yields on the 10-year Treasury, which helps set interest rates on mortgages and other loans, fell to 2.91% from 2.93% at the end of Wednesday.
In energy trading, the benchmark US crude fell 23 cents to 6 116.64 a barrel. International benchmark Brent crude fell 12 cents to 7 117.49 a barrel.
In currency trading, the US dollar fell from 129.87 yen to 129.82 Japanese yen. The euro rose to 1.0765 from $ 1.0752.


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