Stock market today: Asian markets are mixed after another winning close
on Wall Street
Send a link to a friend
[October 21, 2024] By
ELAINE KURTENBACH
BANGKOK (AP) — Asian shares were mixed on Monday after U.S. stocks rose
to records to close out their latest winning week. U.S. futures also
were mixed and oil prices climbed.
Hong Kong's Hang Seng sank 1.5% to 20,869.39, while the Shanghai
Composite gained 0.2% to 3,268.11. The A-share index of the smaller
market in Shenzhen picked up 1.6%.
China cut its one-year and five-year Loan Prime Rates, which are
reference rates for lending. Lower rates can help reduce pressure on
borrowers, particulary property developers that have suffered following
a crackdown on excessive borrowing several years ago. But any impact on
market sentiment appeared to be short-lived.
Given that the main constrain is weak demand, the “heavy lifting” will
have to come from government spending, Zichun Huang of Capital Economics
said in a report. China's Finance Ministry has pledged to ramp up such
outlays in coming months, “However, we are still skeptical that fiscal
easing will be large enough to deliver anything more than a modest and
short-lived pick-up in activity.”
Tokyo's Nikkei 225 index edged 0.1% lower to 38,954.60, while the Kospi
in Seoul advanced 0.4% to 2,604.92. Australia's S&P/ASX 200 closed 0.7%
higher at 8,344.40.
Oil prices climbed after tumbling last week as worries receded that
Israel will attack Iranian oil facilities as part of its retaliation for
Iran’s missile attack early this month. Iran is a major producer of
crude, and a strike could upend its exports to China and elsewhere.
Concerns about the strength of demand from China have also hit oil
prices.
Early Monday, U.S. benchmark crude was up 52 cents at $69.21 per barrel
in electronic trading on the New York Mercantile Exchange. Brent crude,
the international standard, picked up 41 cents to $73.47 per barrel.
The dollar rose to 149.78 Japanese yen from 149.57 yen late Friday. The
yen has weakened recently on expectations that the pace of interest rate
hikes by the Bank of Japan may be slower than earlier thought.
[to top of second column] |
A currency trader reads documents near a screen showing the Korea
Composite Stock Price Index (KOSPI), left, and the foreign exchange
rate between U.S. dollar and South Korean won at the foreign
exchange dealing room of the KEB Hana Bank headquarters in Seoul,
South Korea, Monday, Oct. 21, 2024. (AP Photo/Ahn Young-joon)
The euro slipped to $1.0856 from
$1.0866 late Friday.
On Friday, Wall Street logged more records.
The S&P 500 rose 0.4% to squeak past the all-time high it had set
early this week, closing at 5,864.67. The Dow Jones Industrial
Average edged 0.1% higher to 43,275.91, another record. The Nasdaq
composite climbed 0.6% to 18,489.55.
Trading overall on Wall Street remained relatively calm, as the S&P
500 closed its sixth straight winning week. That’s its longest such
winning streak of 2024.
Solid economic data has boosted hopes the U.S. economy can make a
perfect escape from the worst inflation in generations, one that
ends without a painful recession that many investors had seen as
nearly inevitable. And with the Federal Reserve now cutting interest
rates to keep the economy humming, the expectation among optimists
is that stocks can rise even further.
Traders are coalescing around the idea that the Federal Reserve will
cut its main interest rate by a quarter of a percentage point at its
next meeting in November. Expectations had been high earlier for the
Fed to deliver another larger-than-usual cut of half a percentage
point, but strong updates on the economy have eliminated those. The
federal funds rate is currently sitting in a range of 4.75% to 5%.
All contents © copyright 2024 Associated Press. All rights reserved |