Asian stocks higher as investors watch corporate earnings

BEIJING (AP) – European stocks opened lower while Asian markets advanced Tuesday as investors waited for United States (US) corporate results to see how companies are coping with supply disruptions and the last quarter’s surge in coronavirus infections.

Shanghai, Tokyo and Hong Kong gained, while London and Frankfurt declined.

Wall Street futures were higher after the benchmark S&P 500 index rose on Monday, propelled by tech and consumer stocks.

“It was a good day to be a mega-cap tech stock,” said Edward Moya of Oanda in a report.

In early trading, the FTSE 100 in London was off less than 0.1 per cent at 7,202.29. The DAX in Frankfurt lost less than 0.1 per cent to 15,470.80. The CAC 40 in Paris was flat
at 6,671.16.

On Wall Street, futures for the S&P 500 and Dow Jones Industrial Average were up 0.1 per cent.

The S&P 500 gained 0.3 per cent on Monday while the Dow lost 0.1 per cent. The Nasdaq composite advanced 0.8 per cent.

In Asia yesterday, the Shanghai Composite Index rose 0.7 per cent to 3,593.15 and the Nikkei 225 in Tokyo advanced 0.6 per cent to 29,215.52. The Hang Seng in Hong Kong added 1.4 per cent to 25,771.24.

People walk past a bank’s electronic board showing Hong Kong’s Hang Seng share index in Hong Kong. PHOTO: AP

The Kospi in Seoul was 0.7 per cent higher at 3,029.04 and Sydney’s S&P-ASX 200 ended less than 0.1 per cent lower at 7,374.90.

India’s Sensex gained 0.7 per cent to 62,189.17. New Zealand and Singapore advanced while Bangkok and Jakarta declined.

Health care giant Johnson & Johnson, United Airlines and streaming entertainment service Netflix were due to report earnings soon. American Airlines and Southwest Airlines follow tomorrow.

Companies are warning that supply disruptions stemming from the pandemic are hampering production and could hurt them financially.

Investors worry that is fuelling inflation and might slow an economic recovery.

“The inflation pressures we expected are here – and are persistent,” researchers at the BlackRock Investment Institute said in a report.

The S&P 500 is within about 1.1 per cent of its September 2 all-time high after gaining 1.8 per cent last week.

On Monday, chipmaker Nvidia rose 1.6 per cent and Target rose 3.2 per cent.

Those gains were tempered by losses for health care and other companies. Medical device vendor Medtronic fell 5.5 per cent.

The Commerce Department is due to report on September housing starts.

On Monday, Toyota Motor Co rose 1.3 per cent after announcing plans to build a USD1.3 billion factory in the United States (US) to make batteries for electric and gas-electric hybrid vehicles. TV station owner Sinclair Broadcasting fell 2.9 per cent after reporting a data breach.

Also Monday, Federal Reserve reported an unexpectedly big 1.3 per cent drop in US industrial production. Nearly half of that was blamed on lingering effects of Hurricane Ida.

In energy markets, benchmark US crude gained 72 cents to USD82.41 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, used to price international oils, rose 50 cents to USD84.83 per barrel in London. The dollar fell to JPY114.03 from Monday’s JPY114.26. The euro rose to USD1.1651 from USD1.1610.