HONG KONG (AP) — Shares were mixed in Asian markets Monday after Wall Street returned to record heights Friday, while Hong Kong’s benchmark dropped nearly 3 per cent, hovering near a 15-month low.
US futures climbed, while oil prices dropped.
Tokyo’s Nikkei 225 index gained 1.7 per cent to 36,580.00. The Bank of Japan started a two-day policy meeting on Monday, and was expected to keep its ultra-low interest rates unchanged.
The Hang Seng in Hong Kong lost 2.8 per cent to 14,877.50. The index has shrunk more than 10 per cent this year, its worst start to a year since 2016. The Shanghai Composite index was down 2.5 per cent at 2,760.73.
China’s commercial banks kept their loan prime rate unchanged Monday amid downward pressure on the yuan, disappointing investors who anticipated measures to stimulate the economy. Last week, the People’s Bank of China surprised markets by keeping its medium-term lending facility rate unchanged.
In South Korea, the Kospi fell 0.4 per cent to 2,476.14. Australia’s S&P/ASX 200 advanced 0.8 per cent to 7,476.60. In Bangkok, the SET was down 0.6 per cent, while in Taiwan the Taiex gained 0.8 per cent.
On Friday, the S&P 500 rallied 1.2 per cent to its record of 4,839.81. The Dow Jones Industrial Average set its own record a month earlier, and it gained 1.1 per cent to 37,863.80. The Nasdaq composite jumped 1.7 per cent to 15,310.97.
Wall Street’s run-up was driven in part by hopes for rate cuts as US inflation remained tame. Treasury yields have already relaxed significantly on expectations for rate cuts, and that helped the stock market’s rally accelerate sharply in November.
The Fed itself has hinted that rate cuts are coming, though some officials have indicated they may begin later than the market is hoping for.
Friday’s lift for Wall Street came with a big boost from technology stocks, something that’s become typical in its run higher.
Several chip companies rose for a second straight day after heavyweight chipmaker Taiwan Semiconductor Manufacturing Co delivered a better forecast for revenue this year than analysts expected. Broadcom rose 5.9 per cent, and Texas Instruments climbed 4 per cent.
In energy trading, benchmark US crude gave up 31 cents to USD72.94 a barrel. Brent crude, the international standard, lost 35 cents to USD78.21 a barrel.
The US dollar inched down to JPY148.09 from JPY148.14. The euro cost USD1.0904, up from USD1.0897.
