Asian shares traded higher after mixed trading on Wall Street

Content of the article

TOKYO (AP) – Asian shares mostly rose on Friday as markets continued to be optimistic about the outlook for technology companies and the health of the global economy.

Japan’s benchmark Nikkei 225 added 0.5% to 38,566.40 after mostly positive data on the world’s fourth-largest economy.

Industrial production rose 2.8% in July from the previous month, rebounding from minus 4.2% in June, according to the Ministry of Economy, Trade and Industry. That was weaker than the market expected, but a sign of growth. In other findings, the unemployment rate rose to 2.7% in July, from 2.5% in June.

Content of the article

Tokyo consumer prices rose more than expected to 2.6% year on year in August, from 2.2% in July, as food and utility prices rose. That will almost certainly get the Bank of Japan’s attention as it ponders when to raise interest rates, a move it will likely take late this year or early next year.

Australia’s S&P/ASX 200 rose 0.3% to 8,071.90. South Korea’s Kospi added 0.6% to 2,677.19. Hong Kong’s Hang Seng rose 1.8% to 18,100.00, while the Shanghai Composite rose 1/3% to 2,860.89.

On Wall Street, an afternoon slide by several Big Tech companies pared gains earlier Thursday, leading to mixed US stock indexes.

The S&P 500 ended flat after giving up earlier gains of nearly 1%. The benchmark index is about 1.3% away from the record set in July.

The Dow Jones Industrial Average managed a 0.6% gain, enough for its third high since Monday. The Nasdaq Composite, which is heavily weighted with technology stocks, fell 0.2%. It has risen 1.3% in the early going.

Despite the mixed finish, gainers outnumbered decliners by roughly two to one on the New York Stock Exchange.

Content of the article

Content of the article

Nvidia, whose boom in artificial intelligence has made it one of the most influential companies in the S&P 500, is the market’s biggest weight. The stock fell 6.4% despite stellar results for the second quarter. The stock, with a total market value of $3 trillion, is still up 138% in 2024.

In some positive news, the Commerce Department increased its estimate of US economic growth for the second quarter to 3%, compared to the previous estimate of 2.8%. This is another signal that the economy remains strong, despite pressure from stubborn inflation and high interest rates.

The strongest earnings update and economic growth overshadowed encouraging reports for the broader economy. Data from various reports in August showed that retail sales, employment and consumer confidence remained strong.

“Solid growth of consumer spending propelled the economy forward in the second quarter, and the increase in consumer confidence in July suggests it will propel growth in the second half of the year as well,” said Bill Adams, chief economist for Comerica Bank.

Content of the article

The main report of the week comes on Friday, when the US government releases July data on inflation with the PCE, or personal consumption and expenditure report. Economists expect PCE, which is the Federal Reserve’s preferred measure of inflation, to show that inflation rose to 2.6% in July from 2.5% in June. Reach 7.1% in the middle of 2022.

Expectations are growing for the Federal Reserve to begin cutting benchmark interest rates. Traders expect the first cut to happen at the next meeting in September. Markets are betting that the Fed will cut its benchmark rate by 1% by the end of the year.

Bond yields rose in the Treasury market. The yield on the 10-year Treasury rose to 3.86% from 3.84% late Wednesday.

All told, the S&P 500 lost 0.22 points to 5,591.96. The Dow gained 243.63 points to 41,335.05. The Nasdaq fell 39.60 points to 17,516.43.

In energy trade, benchmark US crude rose 18 cents to $76.09 a barrel. Brent crude, the international standard, rose 23 cents to $80.17 a barrel.

In currency trading, the US dollar fell to 144.84 Japanese yen from 145.02 yen. The euro was at $1.1075, down from $1.1082.

___

AP Business Writers Damian J. Troise and Alex Veiga contributed. Yuri Kageyama is at X: https://x.com/yurikageyama

Content of the article