BANGKOK (AP) – Shares in Asia fell on Monday as China released a series of data that created a complex picture of its recovery from the epidemic.
The milestones rose in Hong Kong ոյ Tokyo, but fell in Shanghai Կ South Korea.
The passage of the $ 1.9 trillion bailout package for the US economy has boosted investor confidence that the US և global economy is likely to experience a strong recovery from the epidemic in the second half of the year, but it will also raise inflation.
China led the global recovery, reopening earlier than other countries after the cessation of the coronavirus, which appeared in the central city of Wuhan in early 2020.
In January-February, the volume of retail sales increased by almost 36% compared to the same period last year. But the increase was mainly due to high demand for cars, food and jewelry, which suggests that Chinese consumers are scattered during the lunar New Year, according to a report by ING economists.
The data was exaggerated by the low base effects of last year’s shutdowns, they said.
At the same time, the unemployment rate rose to 5.5% from 5.2% a year earlier, which could affect coronavirus outbreaks in some areas, analysts say.
“Travel restrictions weighed on retail sales but boosted industrial output and investment. “We think the activity will remain strong in the first half of this year, until we give way to a weak second half,” said Ulian Evans-Pritchard of Capital Economics.
“Domestic policy support is being phased out. “And the external demand for Chinese goods will fall as vaccines begin to reverse the latest change in global consumption patterns,” he said.
The Shanghai Composite Index fell 0.6% to 3432.01. The Tokyo Nikkei 225 was down 0.1% at 29,732.98 and the Hong Kong Hang Seng was up 0.6% at 28,907.15. In South Korea, Cospin lost 0.2% to 3,049.16. The Sydney S & P / ASX 200-inch is up 0.1% to 6,771.00.
Investors will follow the outcome of the Federal Reserve Policy Meeting this week, which ends on Wednesday. Japan Aponia Central Bank issues a policy update on Friday.
The late-night buying spree helped the S&P 500 rise 0.1 percent to 3,943.34, extending its winning streak for the fourth day in a row. The Dow Jones Industrial Average rose 0.9% to 32,778.64 from shares of Boeing և Caterpillar-like industrial stocks. Nasdaq fell 0.6% to 13,319.86.
The Russell 2000 index of smaller shares of the company increased by 0.6% to 23352.79. It ended the week up 7.3%, beating the S&P 500’s 2.6% weekly gain.
The bond market was once again the dominant force in tech stocks, mainly in terms of pulling down, as yields raised interest rates, making high-flying stocks more expensive.
After staying stable for most of the week, the yield on the 10-year treasury bill jumped to 1.62% from 1.52% the previous day. Investors sold shares late last week after that yield crossed the 1.60% mark. The 10-year treasury was at 1.63% on Monday.
Bond yields have risen since President Biden signed into law a $ 1.9 trillion stimulus package that would include $ 1,400 in checks for most Americans, plus child benefits for those who received unemployment benefits last year. In an introductory speech Thursday, President Biden outlined a plan to extend vaccine coverage to all Americans by May 1.
Wall Street received another sign on Friday that inflation was creeping up. The Labor Department said the producer price index, which measures inflation before reaching consumers, rose 0.5 percent last month after a record 1.3 percent jump the previous month. Wholesale prices have risen 2.8% over the past year, the largest wholesale gain in 12 months in more than two years.
Some economists fear that real inflation may rise in the last decade amid increased demand from the stimulus package. Others disagree, given that there are 9.5 million fewer jobs in the US economy than there were a year before the epidemic. They claim that unemployment will cover inflation.
New York Mercantile Exchange rose 50 cents to $ 66.11 a barrel in electronic trading on the New York Mercantile Exchange on Monday. It lost 41 cents on Friday, reaching $ 65.61 per barrel. Brent crude rose 47 cents to $ 69.69 a barrel on the New York Mercantile Exchange.
The dollar rose to 109.18 Japanese yen from 109.02 yen at the end of Friday. The euro fell from $ 1.1949 to $ 1.1944.