After another day of gains on Wall Street, Asian shares are generally up amid a flood of information on the economy, interest rates, and corporate profits.
(AP) BANGKOK — In the wake of yet another day of gains on Wall Street and a barrage of information about the economy, interest rates, and corporate profits, Asian shares were mainly higher on Friday.
Seoul and Shanghai retreated while Tokyo, Hong Kong, and Sydney advanced. U.S. futures slightly declined as oil prices increased.
Japan stated that inflation increased more slowly in June, with food prices rising 6.5% annually compared to May’s 12.3% and energy expenses rising 16.5% rather than 20.8%. Core inflation, which excludes volatile food and energy prices, increased to 2.6% from 2.2% the previous month.
In contrast to the Federal Reserve and other central banks, the Bank of Japan has stated that it does not plan to increase its benchmark interest rate of minus 0.1% to buck the trend because the lack of wage growth is limiting consumer demand.
An early assessment of industry activity in Japan revealed that output and new orders had fallen to their lowest points in months. Companies cited growing costs and raw material shortages as the causes.
The Hang Seng in Hong Kong increased by 0.1% to 20,598.98, while the Nikkei 225 index in Tokyo increased by 0.4% to 27,924.97. S&P/ASX 200 in Australia increased 0.2% to 6,807.10.
The Kospi index fell 0.3% to 2,402.72 in South Korea. To 3,261.12, the Shanghai Composite index dropped 0.3%.
This week, Europe has received a great deal of attention. As predicted, the European Central Bank decided to increase its benchmark interest rate on Thursday, putting an end to a multi-year experiment with negative interest rates. It had not increased in eleven years.
As concerns persisted that Moscow may cut off supplies to punishing Ukraine’s supporters, a crucial pipeline delivering Russian natural gas into the area was reconnected, though at 40% of capacity. Mario Draghi, the prime minister of Italy, resigned after the collapse of his ruling coalition. As Europe struggles with the conflict in Ukraine, high inflation, and the possibility of problems in the region’s bond markets, this creates even more uncertainty.
The S&P 500 increased 1% to 3,998.95 on Wall Street on Thursday, reaching its highest point in six weeks. The Nasdaq increased to 12,059.61 while the Dow increased by 0.5% to 32,036.90.
At 1,836.69, the Russell 2000 index rose 0.5%.
Following President Joe Biden’s COVID positive test, stocks briefly fell.
The Federal Reserve will increase interest rates for a fourth time this year beginning the following week to slow the pace of high inflation without putting the economy into a recession.
The American economy is already starting to deteriorate in some areas.
Although it is still relatively low, the number of workers who applied for unemployment benefits last week was at its highest level in eight months. A different survey made public on Thursday revealed that manufacturing in the mid-Atlantic region had declined significantly more than economists had anticipated.
Gains on Wall Street this week have been fueled by large American companies reporting strong profits.
After releasing spring numbers that were stronger than experts had anticipated, electric vehicle manufacturer Tesla saw a 9.8% increase in the opening of trade. The S&P 500’s biggest gainer was it.
Nucor, a manufacturer of steel, increased by 9.1% after its earnings beat expectations. The cigarette business, Philip Morris International, increased 4.2% after announcing a higher-than-expected profit.
After its profit and revenue fell short of projections, United Airlines’ share price dropped by 10.2%. Additionally, it reduced its intentions for expansion later this year. American Airlines stock dropped 7.4% even though its sales exceeded expectations even though it reported weaker-than-expected profitability.
Despite reporting higher earnings and revenue than Wall Street expected, AT&T’s stock fell 7.6%. It decreased its prediction of how much money it would make this year.
As the price of American crude oil ended the day 3.5% down, shares in energy companies also declined.
Early on Friday, computerized trading on the New York Mercantile Exchange showed that U.S. benchmark crude oil was up 85 cents at $97.20 per barrel.