Asia shares slip despite signs of optimism on global economy

Oct 27, 2021, 10:41 PM | Updated: Oct 28, 2021, 7:52 pm

TOKYO (AP) — Asian shares slipped on Friday, despite recent signs of optimism about the global economy, including recent rallies on Wall Street.

Japan’s benchmark Nikkei 225 edged down 0.9% in morning trading to 28,559.89, as investors mostly took a wait-and-see attitude ahead of the nationwide parliamentary elections Sunday.

The ruling Liberal Democratic Party, which has ruled almost continuously for decades, is expected to continue to stay in power. But the opposition is also expected to gain ground because of public discontent over the government’s handling of the coronavirus pandemic and worries about the economy.

South Korea’s Kospi lost 0.7% to 2,988.09. Australia’s S&P/ASX 200 declined 0.7% to 7,381.50. Hong Kong’s Hang Seng dipped 0.8% to 25,343.14, while the Shanghai Composite shed 0.1% to 3,514.03.

Heavy selling of some technology shares in after-hours trading cast a shadow. Apple dropped 5.4% in after-hours trading after the company’s fiscal fourth-quarter revenue fell short of Wall Street’s estimates. Amazon.com fell 4% in after-hours trading after its third-quarter earnings missed analysts’ forecasts.

“While sentiments may want to ride on the bullish moves in Wall Street overnight, market participants will also be digesting the weakness in big tech after-market, which may dampen some optimism,” said Yeap Jun Rong, market strategist at IG in Singapore.

The S&P 500 and Nasdaq reached new highs Thursday, as the market more than made up for modest losses a day earlier.

The S&P 500 rose 1% to 4,596.42, posting its third all-time high this week. More than 80% of the stocks in the benchmark index closed higher. Technology stocks, banks and a mix of companies that rely on consumer spending accounted for much of the gains.

The Nasdaq rose 1.4%, nudging the tech-heavy index to 15448.12, above its previous record high set Sept. 7. The Dow Jones Industrial Average rose 0.7% to 35,730.48, leaving it just shy of the all-time high it set on Tuesday.

The Russell 2000 index of small companies climbed 2%, to 2,297.98.

Smaller stocks outpaced the broader market in a sign that investors are more confident about economic growth.

Investors welcomed another encouraging batch of corporate earnings reports by companies such as Ford and Caterpillar. With just over a third of S&P 500 companies having reported results for the July-September quarter, some 66% have posted earnings and revenue that topped Wall Street’s estimates, according to S&P Global Market Intelligence.

Low interest rates and growing company earnings have kept investors in a buying mood, said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute.

“If you look at the economic data and you look at earnings, even though we’re probably past what could be considered peak growth rates, they’re still growing at very healthy levels,” he said.

Bond yields edged higher. The yield on the 10-year Treasury rose to 1.57% from 1.53%.

Outside of earnings, investors got a mixed bag of economic updates Thursday.

Hampered by rising COVID-19 cases and persistent supply shortages, the U.S. economy slowed sharply to a 2% annual growth rate in the July-September period, according to the Commerce Department. That marks the weakest quarterly expansion since the recovery from the pandemic recession began last year.

The Labor Department released a more upbeat report on the nation’s unemployment situation. The number of Americans applying for unemployment benefits fell to a pandemic low last week, another sign that the job market and economy continue to recover from last year’s coronavirus recession.

“There’s a cocktail of economic news coming out that is strong and positive, but in some cases lackluster,” Ball said. “That combination, in total, is probably good for the staying power of the economy.”

Both the pace of economic growth and the state of the jobs market are on investors’ minds as they look ahead to the Federal Reserve’s meeting next week to see how it moves forward with plans to trim bond purchases and its position on interest rates.

Rising energy prices have also raised concerns about the cost for consumers as they pay more to fill gas tanks and heat homes. U.S. crude oil prices inched up 0.2% Thursday and have jumped more than 70% so far this year.

Benchmark U.S. crude inched up 1 cent to $82.82 a barrel. Brent crude, the international standard, rose 14 cents to $84.46 a barrel.

In currency trading, the U.S. dollar inched down to 113.54 Japanese yen from 113.56 yen. The euro cost $1.1678, down from $1.1679.

___

AP Business Writers Damian J. Troise and Alex Veiga contributed.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Associated Press

Poles vent anger at leader over his policies, ideas on women

WARSAW, Poland (AP) — Protesters gathered Monday at the home of Poland’s ruling party leader to vent anger at what they regard as an erosion of women’s rights under his conservative government and a recent remark about women using alcohol. The protesters who gathered outside Jaroslaw Kaczynski’s house spoke out against a near total ban […]
11 hours ago
FILE - State Department spokesperson Ned Price speaks during a briefing at the State Department in ...
Associated Press

US says Russia abruptly postpones arms control talks

WASHINGTON (AP) — The Biden administration said Monday that Russia has abruptly and without explanation postponed the scheduled resumption of arms control talks this week. The State Department said Russia had “unilaterally postponed” a meeting of the Bilateral Consultative Commission that was scheduled to begin Tuesday in Egypt and last through next week. It said […]
11 hours ago
Signage for the FTX Arena, where the Miami Heat basketball team plays, is illuminated Saturday, Nov...
Associated Press

BlockFi files for Chapter 11 bankruptcy protection

Cryptocurrency lender BlockFi is filing for Chapter 11 bankruptcy protection as the fallout from the collapse of crypto exchange FTX spreads outward. In a Monday filing for bankruptcy protection in New Jersey, where it is based, BlockFi claimed more than 100,000 creditors, with BlockFi’s liabilities ranging from $1 billion to $10 billion. BlockFi Inc. said […]
11 hours ago
FILE - In this photo released by the National Park Service a wolf from the Wapiti Lake pack is silh...
Associated Press

Montana officials urge judge to lift limit on wolf kills

HELENA, Mont. (AP) — Montana officials on Monday asked a judge to lift a restraining order that restricted wolf hunting and trapping following concerns that too many of the animals could be killed this winter. The hearing before District Judge Chris Abbott in Helena comes as Montana and other Republican-led states have moved in recent […]
11 hours ago
Attorneys of Oath Keepers leader Stewart Rhodes, James Lee Bright, left, and Phillip Linder, arrive...
Associated Press

Jury deliberations resume in Oath Keepers 1/6 sedition case

WASHINGTON (AP) — Jurors who will decide whether to convict Oath Keepers founder Stewart Rhodes and four associates of seditious conspiracy resumed deliberations Monday in the high-stakes trial stemming from the U.S. Capitol attack. Rhodes and his co-defendants are accused of a weekslong plot to stop the transfer of power from Republican Donald Trump to […]
11 hours ago
A homeless man injects a Narcan nasal spray into the nose of a female addict who appears to be over...
Associated Press

Fentanyl’s scourge plainly visible on streets of Los Angeles

LOS ANGELES (AP) — In an filthy alley behind a Los Angeles donut shop, Ryan Smith convulsed in the grips of a fentanyl high — lurching from moments of slumber to bouts of violent shivering on a warm summer day. When Brandice Josey, another homeless addict, bent down and blew a puff of fentanyl smoke […]
11 hours ago

Sponsored Articles

(Desert Institute for Spine Care photo)...
DESERT INSTITUTE FOR SPINE CARE

Why DISC is world renowned for back and neck pain treatments

Fifty percent of Americans and 90% of people at least 50 years old have some level of degenerative disc disease.
...
Quantum Fiber

Stream 4K and more with powerful, high-speed fiber internet

Picking which streaming services to subscribe to are difficult choices, and there is no room for internet that cannot handle increased demands.
...
Day & Night Air Conditioning, Heating and Plumbing

Ways to prevent clogged drains and what to do if you’re too late

While there are a variety of ways to prevent clogged drains, it's equally as important to know what to do when you're already too late.
Asia shares slip despite signs of optimism on global economy