BANGKOK (AP) – Shares of most Asian markets fell on Friday after China announced higher price hikes, which could prompt the authorities to work to reduce inflation.
The Japan Nikkei 225 index of the Aponia benchmark returned after falling the day before. Shares fell in Hong Kong, Shanghai, Sydney and Seoul.
Shares in Wall Street closed moderately high on Thursday, boosted by earnings from major tech companies benefiting from lower bond yields. But rising unemployment has hampered some buying enthusiasm.
China said consumer prices rose in March mainly due to rising fuel prices, while producer prices rose at the fastest pace in more than four years.
The consumer price index rose 0.4% in March from minus 0.2% in February as fuel prices rose by almost 12% year-on-year. Prices paid by producers increased by 4.4% compared to the same period last year.
Inflation reflects growing demand as China’s economy recovers from the global epidemic. Concerns that stronger growth could spur inflation, that regulators in many large economies will freeze in the future, with interest rates rising in part, have dominated markets in recent months.
China’s central bank has already instructed lenders to slow loan growth to meet rising risks.
In addition, a new round of US sanctions, this time against seven Chinese supercomputers, has revived fears of trade ties between the two major economies.
“Asian markets are once again cautious today. “Geopolitics is never far from the surface, even if it is often lost in the noise of global recovery,” Hull said in a report.
The Shanghai Composite Index lost 0.9% to 3,451.81 and the Hang Seng Index fell 1.2% to 28,665.74. Australia’s S & P / ASX 200 was down 0.1% at 6,995.20 and Seoul Cospin was down 0.4% at 3,131.88.
Japan-based Nikkei 225 rose 0.2% to 29,768.06.
Shares in Sony Corp have risen 2.7% since the company struck an exclusive deal with Netflix for the film.
The S&P 500 was up 0.4% on Thursday, hitting a record high of 4,097.17 after hitting a record high on Monday and Wednesday. The Dow Jones industrial average was up 0.2% at 33503.57. Nasdaq high-tech composite increased by 1% to 13,829.31.
Shares of small companies, which outperform the wider market this year, also showed good results. The Russell 2000 Small Business Index rose 0.9% to 2,242.60. This year, the index grew by 13.6%, and the S&P 500, followed by large companies, grew by 9.1%.
Shares gained ground this week as bond yields, which had been rising steadily, retreated from increases earlier this month.
The yield on the 10-year US Treasury bill, which affects interest rates on mortgages and other loans, fell from 1.65% to 1.63% late Wednesday night. It reached 1.75% on Monday.
The pullback has put some pressure on tech stocks, which have fallen in recent months due to a jump in yields, making those stocks look more expensive. The industry has also seen a sprawling trade as investors move more money to companies that should benefit from economic recovery.
Apple grew by 1.9%, Microsoft by 1.3% and Amazon by 0.6%.
Investors are cautiously optimistic about the recovery of the economy, especially in the United States, where the distribution of vaccines is growing.
But it is clear that recovery still has a long way to go. The number of Americans applying for unemployment benefits last week rose again last week as many businesses remained closed or partially shut down due to the epidemic.
Speaking to the International Monetary Fund on Thursday, Federal Reserve Chairman ome Jerome Powell said a number of factors were “putting people on the path to a full reopening of the economy soon.”
At the New York Mercantile Exchange, US crude oil fell 1 cent to $ 59.59 a barrel. It lost 17 cents to $ 59.60 on Thursday. The international standard for Brent crude oil fell 13 cents to $ 63.07.
The US dollar rose to 109.41 Japanese yen from 109.25 yen. The euro fell from $ 1.1917 to $ 1.1890.