Asian markets fall after Wall Street hits new high


BEIJING (AP) – Asian stock markets fell on Monday after Wall Street hit a new high as investors eagerly awaited manufacturing indicators from Japan, China and South Korea.

Shanghai, Tokyo and Seoul have retreated. Trade in Hong Kong has been suspended due to a weather alert.

The Wall Street S&P 500 Index posted its biggest weekly gain in four months on Friday.

Investors were encouraged by the progress made in Washington on an infrastructure spending plan. Markets have recovered from the Federal Reserve’s announcement that it may start raising interest rates sooner than expected.

The S&P gain “is generally indicative of improving sentiment,” Mizuho Bank said in a report.

The Shanghai Composite Index fell less than 0.1% to 3,606.02 and the Nikkei 225 in Tokyo was down 0.1% to 29,048.02.

The Kospi in Seoul lost 0.2% to 3,296.97 while the ASX-S & P 500 in Sydney slipped less than 0.1% to 7,306.80.

India’s Sensex index opened down 0.2% to 52,827.02. New Zealand, Bangkok and Jakarta also fell, while Singapore advanced.

Investors are eagerly awaiting the monthly surveys of manufacturing activity in Japan, China and South Korea.

Production is recovering from last year’s slump but faces processor chip shortages and other disruptions.

Markets have oscillated between optimism about the economic recovery supported by the deployment of coronavirus vaccines and unease that the Fed and other central banks may feel pressure to withdraw stimulus measures to curb the rise in the economy. ‘inflation.

The Fed, which says it believes price spikes in the United States are temporary, surprised traders by saying it could start raising rates by the end of 2023, earlier than the previous target of 2024 The markets collapsed but recovered most of their losses.

The Commerce Department said on Friday that a measure of inflation closely watched by the Fed rose 0.4% in May and was up 3.9% in the past 12 months, well above the Fed’s 2% target.

Also on Friday, President Joe Biden and a group of senators agreed to a five-year, $ 973 billion plan for spending on roads, railways and ports.

On Wall Street, the S&P 500 rose 0.3% to 4,280.70. That gave the index a weekly gain of 2.7%, its biggest since February 5.

The Dow Jones Industrial Average gained 0.7% to 34,433.84 while the Nasdaq Composite lost 0.1% to 14,360.39.

In energy markets, benchmark US crude fell 1 cent to $ 74.04 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 75 cents to $ 74.05 a barrel on Friday. Brent crude, the basis of international oil prices, fell 10 cents to $ 75.28 a barrel in London. It gained 62 cents the previous session at $ 76.18.

The dollar fell to 110.62 yen from 110.84 yen on Friday. The euro fell to $ 1.1924 from $ 1.1932.

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