BANGKOK (AP) – Shares in Asia rose on Wednesday after a shocking day on Wall Street as the S&P 500 returned most of its earnings from the previous day.
Hong Kong led the way, gaining 2.4%. Tokyo, Seoul, Shanghai and Sydney were higher.
Investors took into account the weakening of bond prices, which eased concerns about possible interest rate hikes. The yield of the bonds weakened, and the yield of the 10-year treasury fell to 1.40% at the beginning of Wednesday.
But expectations of stronger economic growth in the coming months continue to raise fears that interest rates will rise.
“It feels like we’re in the middle of a storm,” said Axi’s Steven Ines. Investors have recently focused on selling high-tech stocks, but are also pursuing policy changes as President Biden’s $ 1.9 billion stimulus package goes to the Senate after a narrow passage in the House.
“How much inflation and inflation will create Biden’s fiscal stimulus remains at the top of virtually every market conversation,” said Innes.
In Hong Kong, the Hang Seng rose to 29,792.81. The Tokyo Nikkei 225 index rose 0.5 percent to 29,559.10, while the Seoul Cospin rose 0.6 percent to 3,082.99. The Shanghai Composite Index rose 1.8% to 3569.66.
Australia’s S & P / ASX 200 rose 0.8% in the fourth quarter of last year to 6818.00 after the government said the economy was growing at a quarterly rate of 3.1% but minus 1.1% at an annual interest rate. According to analysts, consumer demand և government spending contributed to a better result than expected.
India’s Sensex opened 0.8% higher.
The S&P 500 fell 0.8 percent to 3,870.29 on Tuesday after falling through a small profit-loss. The day before, the benchmark index jumped 2.4% to its best level since June. Shares of technology և internet accounted for the majority of sales, which is a decline compared to the previous day.
Dow Jones Industrial Average lost 0.5% to 31,391.52. Nasdaq technically heavy composite decreased by 1.7% to 13358.79.
Small companies were worse off than the rest of the market. The Russell 2000 Small Capital Index fell 43.81 points or 1.9% to 2231.51 points.
Higher interest rates are forcing investors to reconsider how much they are willing to pay for the stock, for every $ 1 earned by companies that are slightly less valuable. This is forcing Wall Street to reconsider the value of technology stocks, largely because their recent dominance seemed more expensive than the rest of the market.
Treasury yields have recently risen from 1.50%, with expectations of economic growth and inflation, up from about 0.9% at the beginning of the year. Such growth makes borrowing more expensive for homeowners, loan companies, and virtually everyone else. It can slow down economic growth.
On Tuesday, Federal Reserve Governor Lael Brainard sought to reassure financial markets that the Fed, while generally optimistic about the economy, was still far from raising interest rates or cutting $ 120 billion a month in asset purchases.
He said the Fed was closely monitoring the 10-year treasury yield growth and investor inflation expectations. But he has repeatedly said that the economy is less than 10 million jobs below the epidemic level, “the FRS will leave rates almost zero until the labor market is fully restored.”
“We have a long way to go to reach our goals,” Brainard said.
Federal Reserve Chairman ome Jerome Powell is scheduled to deliver a speech on Thursday, and at the end of the week there will be a government job report, which is usually the main economic report for each month. It also contains figures on how much wages are rising in the economy, a key component of inflation.
At the New York Mercantile Exchange, other US crude oil rose 33 cents to $ 60.08 a barrel. It lost 89 cents to $ 59.75 a barrel on Tuesday. The international standard for Brent crude oil added 40 cents to $ 63.10 per barrel.
The dollar rose from 106.68 yen to 106.88 Japanese yen late Tuesday night. The euro fell from $ 1.2091 to $ 1.2083.
MS Business Authors Stan Choen, Damian Tro. Truez և Alex Weigan contributed.