Asian shares mixed; Wall Street awaits earnings results.
Asian stocks were mixed on Wednesday as investors awaited earnings results from major global companies. Japan’s benchmark Nikkei 225 gained 0.4%, while Australia’s S&P/ASX 200 shed 0.1% and South Korea’s Kospi jumped 1.3%. Stocks rose in Singapore but fell in Indonesia. Markets were closed in Hong Kong, Shanghai and Taiwan for Lunar New Year holidays. Australia reported higher than expected inflation figures, setting off expectations for another interest rate hike.
On Wall Street, the S&P 500 slipped less than 0.1%, the Dow Jones Industrial Average rose 0.3%, and the Nasdaq composite fell 0.3%. Investors are trying to get a better sense of how inflation is affecting the economy, the potential for a recession, and whether the Federal Reserve can ease up on its aggressive interest rate increases. The central bank has already pulled its key overnight rate up to a range of 4.25% to 4.5% from virtually zero early last year. The Fed will announce its next rate increase on Feb. 1 and traders expect a quarter-point raise.
Long-term bond yields fell, with the yield on the 10-year Treasury dropping to 3.46% from 3.52% late Monday. Investors will get more economic updates this week that could provide more insight into inflation’s impact, such as gross domestic product data for the fourth quarter, and personal spending and income data. In energy trading, benchmark U.S. crude gained 35 cents to $80.48 a barrel in electronic trading, while Brent crude rose 50 cents to $86.63 a barrel. In currency trading, the U.S. dollar edged up to 130.44 Japanese yen from 130.17 yen.
Overall, investors remain cautious as they wait for more economic data to gauge the impact of inflation on the economy. Wall Street will be watching to see if the Federal Reserve will adjust its inflation-fighting strategy, as traders expect a quarter-point raise on February 1st. Long-term bond yields fell, while energy prices rose modestly. In currency trading, the U.S. dollar strengthened against the Japanese yen. Asian markets were mixed, with stocks rising in some countries and falling in others.
News Source