HONG KONG (AP) – Asian shares were mixed yesterday after Wall Street retreated as investors were rattled by uncertainties brought by United States (US) President Donald Trump.
US futures were nearly unchanged and oil prices advanced. Chinese markets declined for a second day. Hong Kong’s Hang Seng tumbled 1.9 per cent to 23,772.39 after China kept its key lending rates unchanged. Traders have been unloading technology shares following recent gains. The Shanghai Composite index lost 1.2 per cent to 3,369.42.
In Tokyo, the Nikkei 225 0.2 per cent lower to 37,677.06 as the markets reopened after a holiday on Thursday. Japan reported its core inflation rate fell less than forecast, partly boosted by a surge in rice prices due to a shortage of supplies.
Elsewhere in Asia, Korea’s Kospi picked up 0.2 per cent to 2,643.13, while Australia’s S&P/ASX 200 rose by 0.2 per cent, closing at 7,931.20.
Bangkok’s SET gained 0.1 per cent and the Taiex in Taiwan fell 0.8 per cent.
On Thursday, the S&P 500 slipped 0.2 per cent to 5,662.89, while the Dow Jones Industrial Average dipped less than 0.1 per cent to 41,953.32. The Nasdaq composite fell 0.3 per cent to 17,691.63.
Wall Street has been swinging for weeks on a roller-coaster ride, as stock prices veer on uncertainty about what Trump’s trade war will do to the economy.
Stocks got a boost on Wednesday after the head of the Federal Reserve said the economy remains solid enough at the moment to leave interest rates where they are. More data arrived on Thursday to support that view.
One report said slightly fewer US workers filed for unemployment benefits last week than economists expected. A separate report said sales of previously occupied homes were stronger last month than economists expected, while a third said manufacturing growth in the mid-Atlantic region appears to be better than economists expected.
Fed Chair Jerome Powell stressed on Wednesday that extremely high uncertainty is making it difficult to forecast what will happen next. It’s uncertainty not just about the trade war but also about the potential impact of moves to shrink the US federal government.
The broad US stock market was likely due for its recent drop, which took it more than 10 per cent below its all-time high in just a few weeks after prices climbed much faster than corporate profits to make it look too expensive.
On Wall Street, Darden Restaurants climbed 5.8 per cent after reporting profit for the latest quarter that matched analysts’ expectations. That was despite what the company behind Olive Garden, Ruth’s Chris Steak House and other restaurant chains called “a challenging environment.” Accenture fell to one of the market’s larger losses on Thursday even though the consulting and professional services company reported slightly better profit and revenue for the latest quarter than analysts expected.
The worry is over the hit Accenture may take to revenue from the US government as Elon Musk leads efforts to cut federal spending.
The federal government accounted for 17 per cent of Accenture’s North American revenue last fiscal year, and its stock sank 7.3 per cent. Also Thursday, Britain’s FTSE 100 fell 0.1 per cent after the Bank of England kept its main interest rate unchanged.
In other dealings yesterday, US benchmark crude oil gained 15 cents to USD68.22 per barrel in electronic trading on the New York Mercantile Exchange.Brent crude, the international standard, added 12 cents to USD72.12 per barrel. The US dollar rose to JPY 149.53 from JPY 148.78 late Thursday. The euro fell to USD1.0834 from USD1.0854.
