Asian shares gain after earnings-fueled rally on Wall Street

Nov 21, 2022, 10:38 PM | Updated: Nov 22, 2022, 11:57 pm
A currency trader passes by screens showing the foreign exchange rates at the foreign exchange deal...

A currency trader passes by screens showing the foreign exchange rates at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Wednesday, Nov. 23, 2022. Asian shares advanced on Wednesday after solid earnings pushed retailers higher on Wall Street ahead of the Thanksgiving holiday in the U.S. (AP Photo/Ahn Young-joon)

(AP Photo/Ahn Young-joon)

BANGKOK (AP) — Asian shares advanced on Wednesday after solid earnings pushed retailers higher on Wall Street ahead of the Thanksgiving holiday in the U.S.

Benchmarks rose in Hong Kong, Seoul and Sydney but fell in Shanghai. Markets were closed in Japan for a holiday.

New Zealand’s share benchmark fell 0.9% after the Reserve Bank of New Zealand raised its benchmark rate by three-quarters of a point to 4.25%, striving to rein in inflation that is now at 7.2%.

It’s the first time the bank has raised rates by more than a half-point since introducing the Official Cash Rate in 1999. The new rate is the highest in New Zealand since early 2009.

Hong Kong’s Hang Seng index surged 1% to 17,600.93 and the Kospi in Seoul rose 0.7% to 2,421.84. In Sydney, the S&P/ASX 200 climbed 0.5% to 7,220.40.

The Shanghai Composite index slipped 0.2% to 3,082.95. Shares rose in Southeast Asia.

On Tuesday, the S&P 500 rose 1.4% to 4,003.58 and the Dow Jones Industrial Average added 1.2% to 34,098.10. The tech-heavy Nasdaq composite added 1.4% to 11,174.41.

Smaller company stocks also got a boost. The Russell 2000 rose 1.2%, to 1,860.44.

All the company sectors in the benchmark S&P 500 index rose, with technology stocks driving much of the rally. Chipmaker Nvidia rose 4.7%.

Best Buy soared 12.8% after the Minneapolis-based consumer electronics chain did better than analysts expected and said a decline in sales for the year will not be as bad as it had projected earlier.

Energy stocks notched the biggest gain as the price of U.S. crude oil rose 1.5%. Chevron rose 2.6%.

Long-term Treasury yields fell. The yield on the 10-year Treasury, which influences mortgage rates, fell to 3.76% from 3.84% late Monday.

The Federal Reserve will release minutes Wednesday from its latest policy meeting, potentially giving investors more insight into its decision-making process. Wall Street has been hoping that the central bank might ease up on its aggressive rate increases. Its benchmark rate currently stands at 3.75% to 4%, up from close to zero in March.

“Ahead of the release of Fed minutes, much focus has been placed on a slowing down on the pace of rate hikes,” Mizuho Bank said in a commentary. “Nonetheless, even if a Fed rate hike step down might be imminent, the picture on risk/growth outlook is far from certain.”

Investors have very little other news to review this week, but several retailers and technology companies are closing out the latest round of corporate earnings with their financial results.

Dell Technologies rose 6.8% after the computer maker reported strong third-quarter profit and revenue. Zoom Video slumped 3.9% after giving investors a weak profit and revenue forecast.

Several retailers made particularly strong gains following solid financial results. Abercrombie & Fitch surged 21.4% and American Eagle jumped 18.2%.

The Fed has warned that it may have to ultimately raise rates to previously unanticipated levels to cool the hottest inflation in decades. That raises the risk it could go too far in slowing economic growth and bring on a recession.

The Paris-based Organization for Economic Cooperation and Development is forecasting modest economic growth globally this year and more tepid growth in 2023. Russia’s war in Ukraine continues threatening energy supplies and key food commodities including wheat. A resurgence of COVID-19 cases in China continues threatening the world’s second-largest economy and global supply chains.

“In 2023, we expect less pain but also no gain,” stated a report from Goldman Sachs looking ahead to the new year.

The investment bank expects inflation and high interest rates to essentially flatten out corporate earnings and hold the broader stock market at its current levels, with the S&P 500 ending 2023 where it currently sits at around 4,000 points.

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

AP

An Iranian flag and a scarf depicting U.S. flag are sold at the Souq Waqif Market in Doha, Qatar, T...
Associated Press

US-Iran match reflects a regional rivalry for many Arab fans

BAGHDAD (AP) — The U.S. team’s must-win World Cup match against Iran will be closely watched across the Middle East, where the two nations have been engaged in a cold war for over four decades and where many blame one or both for the region’s woes. Critics of Iran say it has fomented war and […]
11 hours ago
Associated Press

Ex-majority leader jailed for DUI is leaving Kansas Senate

TOPEKA, Kan. (AP) — A Kansas lawmaker who was forced out of one of the state Senate’s most powerful jobs following an arrest for drunken driving and speeding the wrong way on two interstate highways is planning to leave the Legislature in early January. Former Senate Majority Leader Sen. Gene Suellentrop, a Wichita Republican, confirmed […]
11 hours ago
Community members, including Walmart employees, gather for a candlelight vigil at Chesapeake City P...
Associated Press

Survivor of Virginia Walmart mass shooting files $50M suit

NORFOLK, Va. (AP) — A Walmart employee who survived last week’s mass shooting at a store in Virginia has filed a $50 million lawsuit against the company for allegedly continuing to employ the shooter — a store supervisor — “who had known propensities for violence, threats and strange behavior.” The lawsuit, which appears to be […]
11 hours ago
Associated Press

Defense: Man had no reason to help family in killings of 8

WAVERLY, Ohio (AP) — An Ohio man accused of helping his family kill eight members of another family had no reason to take part and wasn’t even there, his attorney told trial jurors Tuesday during closing arguments. George Wagner IV, his brother and parents were charged in the 2016 shooting deaths of seven adults and […]
11 hours ago
China's President Xi Jinping arrives to attend the APEC Economic Leaders Meeting during the Asia-Pa...
Associated Press

China to increase nuclear warheads to 1,500, Pentagon warns

WASHINGTON (AP) — China is expanding its nuclear force and is on pace to nearly quadruple the number of warheads it has by 2035, rapidly closing its gap with the United States, the Pentagon said in a report released Tuesday. The report builds on the military’s warning last year that China is expanding its nuclear […]
11 hours ago
Associated Press

Connecticut woman sentenced to year in jail for voyeurism

STAMFORD, Conn. (AP) — A wealthy Connecticut woman whose criminal case file was sealed from public view was sentenced Tuesday to one year in jail for secretly recording three people, including a minor, in a manner involving sexual desire. Hadley Palmer, 54, of Greenwich, appeared in Stamford Superior Court, where her lawyer had requested another […]
11 hours ago

Sponsored Articles

...
SCHWARTZ LASER EYE CENTER

Key dates for Arizona sports fans to look forward to this fall

Fall brings new beginnings in different ways for Arizona’s professional sports teams like the Cardinals and Coyotes.
...
Day & Night Air Conditioning, Heating and Plumbing

Here are 4 signs the HVAC unit needs to be replaced

Pool renovations and kitchen upgrades may seem enticing, but at the forefront of these investments arguably should be what residents use the most. In a state where summertime is sweltering, access to a functioning HVAC unit can be critical.
...
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.
Asian shares gain after earnings-fueled rally on Wall Street