Asia Stocks Varied After Wall St Rise; Powell Warning
Asian stock exchanges were mixed on Wednesday. Wall Street has risen, and the chairman of the Federal Reserve has said he will raise interest rates further to reduce inflation. Shanghai and Hong Kong refused. Seoul and Tokyo advanced. Oil prices have risen to more than $110 a barrel. On Wall Street, the benchmark S&P 500 Index rose to an extensive daily threshold of 2%; Since then, positive retail sales in the US have helped alleviate inflation concerns.
According to head Jerome Powell, the federation will have to consider “moving more aggressively”; If inflation is at a four-decade high, it cannot be reduced after rising early rates. Powell’s comments have further heightened expectations of rising interest rates. The Shanghai Composite Index lost 0.4%, falling to 3.082.12. Hang Seng fell 0.6% to 20,471.54.
The Nikkei 225 in Tokyo rose to 26,824.46, for a total of 0.6%; After the government announced that economic output fell by 0.2% in the first three months of 2022. It was stronger than expected. Kospi rose to 2,624.64 in Seoul, up 0.2% overall. The S&P-ASX 200 rose to 7.187.10, up 0.9% overall. Sensex opened at 54.590.12, up 0.5%. Bangkok fell, While New Zealand and other markets in Southeast Asia grew. The S&P 500 advanced to 4,088.85 on Wall Street. The Dow stood at 32,654.59, up 1.3% overall. The Nasdaq was up 11,984.52, up 2.8%.
Tech Stock
Large tech rallies led the rally. Microsoft and Apple were the biggest winners. Shares of small companies have risen more than the rest of the market. This is a signal that investors are feeling the economy is booming. Treasury revenue increased.
Investors welcomed the Commerce Department report, which showed retail sales up 0.9% in April. Despite the high food, gas, and rent costs, consumers provide critical support to the economy. The economy shrank in the first three months of the year; however, consumer and business spending continued to grow healthy. The Federal Reserve and other central banks are raising interest rates close to zero during the coronavirus pandemic, or they say they plan to reduce inflation. Supply chain problems have forced businesses to raise prices on everything, including food to clothing, as demand recovers after a pandemic.
Russia’s war with Ukraine raised oil and gas prices. This has led to fears of a delay in Russian supplies. The price of US oil in electronic trading on the New York Mercantile Exchange rose 66 cents to 113.05 US dollars. The contract fell to $1.80, for a total of $112.40. The basis for the international oil price, Brent crude, rose 17 cents in London; And totaled $112.10 per barrel. It lost $2.31 in the first session to $111.93. The dollar fell to 129.11 yen. The euro dropped to $1.0536.
European Shares
On a positive note, European stock exchanges should open on Wednesday, Against the backdrop of strong retail sales in the US and declining regional unemployment. However, sentiments are likely to be affected by the Fed’s aggressive comments about reducing inflation. On Tuesday, European markets recorded strong growth, Against the background of low unemployment in France. The DAX led the rally with a 1.59 percent increase. CAC 40 added 1.30 percent; The Stoxx 600 added 1.22 percent. The FTSE 100 rose 0.72 percent. SMI went up 0.50 percent.
The CSI300, up more than 6% from its April 27 low, ended the session with a 0.4% decline. The market has recovered with signs that China was implementing more stimulus to help the economy, which was destroyed by the country’s most enormous COVID-19 blast in two years.
Morgan Stanley expects China’s growth to reach below 5.2% in 2022. COVID-zero strategy delays are only partially offset by broad-based mitigation.
Real estate stocks, which have recovered in signs of policy easing, fell to gloomy data in April. In April, housing prices fell in more cities. The sector is going through a crisis. Government policies have become more supportive, but not for the most part. It is unknown when the housing sector will recover.
The mood was further dampened by data that foreign investors cut for the third month in April property in Chinese Yuan-denominated bonds, the longest in record time. Along with the trend, China’s technologically heavy STAR50 index, where Chinese chipmakers and high-end manufacturers live, rose 0.4%. The Chinese Vice Premier on Tuesday calmed the nerves of the technology sector. They said that the government supports the sector’s development.
