TOKYO (AP) – Asian shares were mixed in directionless trading Tuesday following a US holiday, as optimism about a deal on the US debt was dented by worries about the regional economy.
Japan’s benchmark Nikkei 225 lost 0.4 per cent in morning trading to 31,119.27. Australia’s S&P/ASX 200 was little changed, inching up less than 0.1 per cent to 7,218.60. South Korea’s Kospi added 0.9 per cent to 2,581.89. Hong Kong’s Hang Seng dipped 0.5 per cent to 18,458.25, while the Shanghai Composite lost 0.6 per cent to 3,202.41.
Analysts say investors remain concerned about a possible “second wave” of COVID-19 cases in China, although the economic impact is expected to be more limited than from the earlier pandemic wave.
China’s recovery from virus-related disruptions during the past several years appears to be faltering, adding to worries over the regional economy.
“To say China’s economic opening has been a disappointment could be an understatement, especially as reflected in local stocks that are now on the cusp of a bear market,” Stephen Innes of SPI Asset Management said in a commentary.
World shares finished mostly higher Monday after President Joe Biden and House Speaker Kevin McCarthy reached agreement on a deal to raise the US national debt ceiling. Now Biden and McCarthy are working to gather votes needed to gain congressional approval in time to avert a default.
There are other concerns on top of the threat of the US defaulting on its debt. A key measure of inflation that is closely watched by the Federal Reserve ticked higher than economists expected in April. The persistent pressure from inflation complicates the Fed’s fight against high prices. The central bank has been aggressively raising interest rates since 2022, but recently signalled it will likely forgo a rate hike when it meets in mid-June.
Markets are closely watching the US consumer confidence data set to be released later in the day.
In energy trading, US benchmark crude added 20 cents to USD72.87 a barrel. Brent crude, the international standard, advanced 5 cents to USD77.12 per barrel.
In currency trading, the US dollar slipped to 140.12 Japanese yen from 140.38 yen. The euro cost USD1.0713, inching up from USD1.0711.
