Stock market today: Asia mixed after Wall St drifts lower following run-up
Asian stock markets are mixed after Wall Street drifted lower following its latest rally
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Shanghai and Hong Kong advanced. Tokyo and Seoul declined. Oil prices rose.
Wall Street's benchmark S&P 500 index lost 0.4% on Monday as tech stocks declined following a rapid run-up while most other stocks advanced. The index is off this year's high of two weeks ago but still up more than 20% since mid-October.
“The moderation from previous overbought technical conditions and extreme bullish sentiment continues,” Yeap Jun Rong of IG said in a report.
The Shanghai Composite Index gained 0.9% to 3,166.41 after China's No. 2 leader, Premier Li Qiang, said economic growth accelerated in the latest quarter and can hit this year's official target of “about 5%.” Li, speaking at a conference, gave no figure for the April-June period but said growth is faster than the previous quarter's 4.5%.
The Nikkei 225 in Tokyo sank 0.8% to 32,451.18 while Hong Kong's Hang Seng rose 1.6% to 19,086.95.
The Kospi in Seoul shed 0.2% to 2,577.68 while Sydney's S&P-ASX 200 added 0.5% to 7,115.40.
India's Sensex opened up 0.2% at 63,113.25. New Zealand declined while Southeast Asian markets advanced.
Stock prices surged this year on hopes that a recession expected after the Federal Reserve and central banks in Europe and Asia raised interest rates to cool inflation might come later and be shorter and shallower than previously forecast.
The S&P 500 hit a peak for the year two weeks ago before enthusiasm eased. Last week was the index's first losing week in the past six.
On Monday, the U.S. market benchmark declined to 4,328.82. The Dow Jones Industrial Average lost less than 0.1% to 33,714.71.
The Nasdaq composite, dominated by tech stocks, fell 1.2% to 13,335.78.
Tesla Inc. fell 6.1% after roughly doubling this year.
PacWest Bancorp, one of the banks that Wall Street has punished in its hunt for the system’s next potential weak link, rose 4% after it sold a portfolio of loans to raise cash.
Electric vehicle company Lucid Group rose 1.5% after announcing a deal where it would provide powertrain and battery systems to Aston Martin.
A report Friday will show how the Federal Reserve’s preferred measure of inflation behaved in May, but consumer and wholesale price data already were reported earlier this month.
Traders are betting June inflation data due out next month will push the Fed to raise rates by a quarter of a percentage point at its next meeting, which runs July 25-26, according to data from CME Group.
The Fed skipped a rate hike at this month's meeting after pushing its benchmark lending rate to a 16-year high to cool inflation. Much of Wall Street expects a hike next month to be the final one of this cycle.
The Fed, meanwhile, has suggested it could raise rates twice more because inflation remains stubbornly high even if it has come down from its peak last summer.
In energy markets, benchmark U.S. crude rose 45 cents to $69.82 per barrel in electronic trading on the New York Mercantile Exchange. The contract gained 21 cents on Monday to $69.37. Brent crude, the price standard for international oil trading, added 42 cents to $74.77 per barrel in London. It advanced 33 cents the previous session to $74.18.
The dollar edged up to 143.48 yen from Monday's 143.45 yen. The euro rose to $1.0925 from $1.0915.