BANGKOK (AP) – Shares in Asia were mixed yesterday after Wall Street broke its longest losing streak since December with a modest rally led by tech stocks.
Benchmarks rose in Tokyo and Sydney but fell in Hong Kong, Shanghai and Seoul. Oil prices rose while United States (US) futures edged lower.
Japan reported its core consumer price index, excluding volatile fresh foods, rose the most in 41 years in January. But the nominee to head its central bank, economist Kazuo Ueda, told lawmakers he favours keeping Japan’s benchmark interest rate near zero to ensure stable growth.
Ueda is expected to succeed Bank Of Japan (BOJ) Governor Haruhiko Kuroda when he steps down in April after two five-year terms marked by unprecedented easing. The change of leadership has prompted speculation about a possible change in the ultra-lax monetary stance, though Ueda sought to dispel such expectations.
“Time is needed before the effects of monetary policy kick in,” Ueda told Parliament, noting the price rises are peaking.
Wages in Japan have failed to keep pace with price increases, and worries over a potential global recession have left the BOJ wary of altering course.
“The fading momentum in food inflation suggests that it has already peaked,” Darren Tay of Capital Economics said in a report. “And with government energy subsidies taking effect from this month, we still expect inflation to fall below the Bank of Japan’s two per cent target by mid-year.”
Tokyo’s Nikkei 225 index added 1.3 per cent to 27,453.48 and the S&P/ASX 200 in Australia gained 0.3 per cent to to 7,307.00.
India’s Sensex fell 0.2 per cent at 59,467.56. In Hong Kong, the Hang Seng index lost 1.2 per cent to 20,099.79 while the Shanghai Composite index gave up 0.6 per cent to 3,267.16.
South Korea’s Kospi lost 0.6 per cent to 2,423.61. Bangkok and Taiwan also declined.
On Thursday, the S&P 500 rose 0.5 per cent for its first gain in five days, closing at 4,012.32.
The Dow Jones Industrial Average added 0.3 per cent to 33,153,91, and the Nasdaq composite surged 0.7 per cent to 11,590.40.
Tech stocks helped lead the way after Nvidia reported better results for the latest quarter than expected. Its shares jumped 14 per cent after it also gave a forecast for upcoming revenue that topped some analysts’ expectations.
It cited recovering strength in video gaming and demand for artificial intelligence products.
Tech and high-growth stocks have struggled recently because of worries about rising interest rates.
