Asian shares mostly higher, echoing Wall Street rebound

Aug 14, 2022, 9:35 PM | Updated: Aug 16, 2022, 2:48 am
A person wearing a protective mask walks past an electronic stock board showing Japan's Nikkei 225 ...

A person wearing a protective mask walks past an electronic stock board showing Japan's Nikkei 225 index at a securities firm Monday, Aug. 15, 2022, in Tokyo. Shares were mixed in Asia on Monday after China's central bank cut a key interest rate and Japan reported its economy expanded at a faster pace in the last quarter. (AP Photo/Eugene Hoshiko)

(AP Photo/Eugene Hoshiko)

TOKYO (AP) — Asian shares mostly rose Tuesday after a rebound on Wall Street, despite regional investor risks reflected in negative economic data out of China.

The benchmark in Tokyo was little changed, erasing earlier gains, but indexes in South Korea, Australia and China gained in morning trading.

Falling oil prices are one positive factor for the region. In Japan, recent economic data have shown a recovery, but high rates of COVID-19 are fueling fears people will hold back on travel and other economic activity.

Some analysts say stock prices haven’t properly reflected real risks.

“It doesn’t seem to matter what the news is, there is just a huge appetite to buy stocks. And to keep buying,” said Clifford Bennett, chief economist at ACY Securities.

“Talk of the bottom having already been priced in seems somewhat premature. Should the market turn down again after all this long positioning, it will fall with a thunderous impact. Buyers beware.”

Japan’s benchmark Nikkei 225 was little changed at 28,870.04 in morning trading. South Korea’s Kospi rose 0.5% to 2,540.41. Australia’s S&P/ASX 200 added 0.6% to 7,107.50. Hong Kong’s Hang Seng added 0.4% to 20,118.35, while the Shanghai Composite gained 0.4% to 3,287.50.

Stocks on Wall Street bounced back and closed higher, extending the market’s recent winning ways as investors look ahead to several updates from retailers this week.

The S&P 500 rose 16.99 points, or 0.4%, to 4,297.14. The Dow added 151.39 points, or 0.5%, to 33,912.44. The Nasdaq gained 80.87 points, or 0.6%, to 13,128.05. The Russell 2000 rose 4.73 points, or 0.2%, to 2,021.35.

The market got off to a bumpy start as traders reacted to news overnight that China’s central bank cut a key interest rate, acknowledging more needed to be done to shore up its economy. The move is the latest warning for markets already on edge over record-high inflation and fears about recessions in the U.S. and elsewhere.

China is the world’s second-largest consumer of crude oil, so the news weighed on energy prices. U.S. crude oil prices slumped 2.9% on worries about the global economy and weighed heavily on energy stocks.

In Tuesday’s trading, benchmark U.S. crude fell 57 cents to $88.84 a barrel. Brent crude, the international standard, lost 86 cents to $94.24.

Treasury yields fell as a report showed manufacturing in New York state unexpectedly contracted. The yield on the 10-year Treasury, which banks use to set mortgage rates, fell to 2.79% from 2.83% late Friday.

Still, all but two of the 11 sectors in the S&P 500 closed higher. Technology stocks, retailers and other companies that rely on direct consumer spending accounted for a big share of the gains.

Moderna rose 3.3% after British regulators authorized an updated version of its COVID-19 vaccine.

The market’s choppy start to the week follows four straight weeks of gains for the benchmark S&P 500 on hopes that inflation is peaking and that the Federal Reserve could ease up on its aggressive interest rate hikes. The central bank has been raising short-term interest rates to help slow economic growth and cool the hottest inflation in 40 years.

Wall Street is worried that the Fed could hit the brakes too hard and send the economy into a recession, and any signal that inflation could be peaking or retreating has helped ease some of those worries.

Investors are also keeping a close watch on how inflation is affecting businesses and consumers. Spending has slowed and the broader economy has already contracted for two straight quarters. Several big retailers will give investors more detail on how their businesses are holding up when they report earnings this week.

Home Depot and Walmart report their results on Tuesday and Target’s results are due on Wednesday. The Commerce Department also releases its July retail sales report on Wednesday. Economists surveyed by FactSet expect modest 0.2% growth from June, when sales rose 1%.

In currency trading, the U.S. dollar edged up to 133.40 Japanese yen from 133.27 yen. The euro cost $1.0167, little changed from $1.0165.

___

Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

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

AP

The flame of a gas burner helps inflate a hot air balloon as part of a re-enactment of the first Al...
Associated Press

Annual hot air balloon festival draws global audience to US

ALBUQUERQUE, N.M. (AP) — Hundreds of hot air balloons are scheduled to lift off Saturday morning, marking the start of an annual fiesta that has drawn pilots and spectators from across the globe to New Mexico’s high desert for 50 years now. As one of the most photographed events in the world, the Albuquerque International […]
22 hours ago
Associated Press

Today in History: October 1, Las Vegas shooting kills 58

Today in History Today is Saturday, Oct. 1, the 274th day of 2022. There are 91 days left in the year. Today’s Highlight in History: On Oct. 1, 2017, a gunman opened fire from a room at the Mandalay Bay casino hotel in Las Vegas on a crowd of 22,000 country music fans at a […]
22 hours ago
Associated Press

Tesla robot walks, waves, but doesn’t show off complex tasks

DETROIT (AP) — An early prototype of Tesla Inc.’s proposed Optimus humanoid robot slowly and awkwardly walked onto a stage, turned, and waved to a cheering crowd at the company’s artificial intelligence event Friday. But the basic tasks by the robot with exposed wires and electronics — as well as a later, next generation version […]
22 hours ago
South Dakota Gov. Kristi Noem, right, Democratic challenger and state lawmaker Jamie Smith, center,...
Associated Press

Governor debate: Noem for abortion ban, Smith wants changes

SIOUX FALLS, S.D. (AP) — South Dakota Gov. Kristi Noem indicated Friday during her reelection campaign’s lone debate with her Democratic challenger, state lawmaker Jamie Smith, that if reelected she will uphold the state’s abortion ban that provides no exceptions for rape or incest. The Republican governor explained her position simply as “pro-life,” while pledging […]
22 hours ago
FILE - Abortion-rights protesters attend a rally following the United States Supreme Court's decisi...
Associated Press

Abortion ruling intensifies fight over state supreme courts

Surrounded by states with abortion bans that took effect after Roe v. Wade fell, Illinois is one of the few places where the procedure remains legal in the Midwest. Abortion-rights supporters are worried that might not last. Their concern is shared in at least a half-dozen states, and this year it’s not just about state […]
22 hours ago
FILE - The JPMorgan Chase & Co. logo is displayed at their headquarters in New York on Oct. 21, 201...
Associated Press

Safety deposit boxes headed toward extinction at Chase

NEW YORK (AP) — You’ll no longer be able to store your precious coins, jewelry and paperwork at JPMorgan Chase & Co., as the bank has stopped opening new safety deposit boxes for customers. A spokesman for the bank said Chase decided late last year to stop offering new deposit boxes to customers as a […]
22 hours ago

Sponsored Articles

...
Quantum Fiber

How high-speed fiber internet can improve everyday life

Quantum Fiber supplies unlimited data with speeds up to 940 mbps, enough to share 4K videos with coworkers 20 times faster than a cable.
...
Children’s Cancer Network

Children’s Cancer Network celebrates cancer-fighting superheroes, raises funds during September’s Childhood Cancer Awareness Month

Jace Hyduchak was like most other kids in his kindergarten class: He loved to play basketball, dress up like his favorite superheroes and jump as high as his pint-sized body would take him on his backyard trampoline.
...
Day & Night Air Conditioning, Heating and Plumbing

Most plumbing problems can be fixed with regular maintenance

Instead of waiting for a problem to happen, experts suggest getting a head start on your plumbing maintenance.
Asian shares mostly higher, echoing Wall Street rebound