Asian markets mixed after Wall Street hits more records – Business
Hong Kong, China ●
Thu 12 Aug 2021
Asian markets fluctuated Thursday after a record Wall Street advance, with traders assessing U.S. figures showing lower inflation that eased pressure on the Federal Reserve to begin easing its ultra-accommodative monetary policy soon.
They were also monitoring China after authorities revealed plans to tighten regulations in several sectors in the coming years, weeks after hitting stocks by cracking down on a range of sectors, including tech companies.
The Dow Jones and S&P 500 hit all-time highs again, supported by data showing that while consumer prices for energy and food rose significantly in July, core inflation – which excludes energy and food costs – came in at 0.3%, just a third of the rate in June.
The news allayed lingering concerns about accelerating inflation, which could push the Fed to accelerate its plan to tighten accommodative monetary policies that have been critical to the recovery of global markets for more than a year.
But there was some caution about the importance of the monthly figures for the long-term outlook.
“There’s a lot to read in the numbers month over month, but a month doesn’t make a trend,” Jeanette Garretty, chief economist at Robertson Stephens Wealth Management, told Bloomberg Television.
“It’s a bit too early to say that this is conclusive evidence that we can see some of the price heat receding.”
Moderation in price growth “is fueling the ‘spike in inflation’ narrative,” Briefing.com analyst Patrick O’Hare said, adding that the report suggested inflation may remain high.
Shares in Tokyo, Sydney, Seoul, Singapore and Jakarta edged up, but losses were recorded in Hong Kong, Shanghai, Wellington, Taipei and Manila.
Stocks had a largely positive start to the week after a recent round of pressure caused by concerns about the fast-spreading Delta variant as well as traders taking a break from a long-running rally.
Read also: Equities on the rise, the dollar supported by the discussions on the Fed’s tapering
The crackdown in China has also had a negative impact, and investors continue to watch Beijing for any further development.
The country’s State Council on Wednesday signaled that the government’s efforts to regulate large swathes of the economy will continue over the next five years.
A statement said sectors such as tutoring, food and drugs would see stricter legal enforcement, fueling concerns officials had not finished taking steps to tighten their grip on the economy.
Investors are also awaiting a meeting of global central bankers and financial executives later this month in Jackson Hole, Wyoming, where the speech by Fed boss Jerome Powell will likely be the main focus in hopes. that it will provide new clues about politics.
– Key figures around 03:00 GMT –
Tokyo – Nikkei 225: UP 0.2% to 28,127.82 (pause
Hong Kong – Hang Seng Index: DROP 0.1% to 26,634.75
Shanghai – Composite: DOWN 0.5% to 3,514.66
Euro / dollar: DOWN to $ 1.1741 from $ 1.1743
Pound / dollar: up to $ 1.3870 from $ 1.3866
Euro / pound: DROP to 84.65 pence against 84.67 pence
Dollar / yen: LOWER to 110.39 yen against 110.43 yen
Brent North Sea: FLAT at $ 71.49 per barrel
West Texas Intermediate: FLAT at $ 69.26 per barrel
New York – Dow: UP 0.6% to 35,484.97 (close)
London – FTSE 100: Up 0.8% to 7,220.14 (close)
– Bloomberg News contributed to this story –