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Asian stocks fall after Wall Street record ahead of Fed session

BEIJING (AP) – Asian stocks fell on Tuesday as Wall Street hit a new record as investors awaited a meeting of the Federal Reserve this week to reassure US interest rates that they will remain extremely low.

Shanghai, Tokyo, Hong Kong and South Korea lived in decline.

The Wall Street S&P 500 Index rose 0.2% overnight as gains in technology, banking and consumer stocks outpaced declines in the healthcare sector.

Investors expect the Fed to keep its key lending rate at zero; after a two-day consultation starting on Tuesday, it will inject more money into the financial system through bond purchases.

Investors were also looking for revenue streams for American companies, which are expected to make more profit as coronavirus vaccines spread, and consumer spending rises. According to a FactSet survey, quarterly earnings on the S&P 500 will grow by 24% among companies on the S&P 500.

The Fed’s statement on Wednesday “should be boring, as policymakers are expected to keep the policy stable,” Oanda’s Edward Moyan said in a report.

Investor confidence has grown as governments release coronavirus vaccines, which they hope will help businesses return to normal. This is alleviated by concerns about possible high inflation and interest rates.

The Shanghai Composite Index sank 0.5% to 3,422.52 and the Hang Seng Index fell 0.2% to 28,910.50 in Hong Kong.

Tokyo’s Nikkei 225 lost 0.1% to 29,089.80 after the Aponia Bank left interest rates unchanged, և other policy parameters unchanged. The Central Bank predicts that inflation will be below 2% by 2023, which will show that the policy will remain unchanged.

Cospin fell 0.4% to 3,204.27 in Seoul after the government announced that economic output had risen to an epidemic level after growth accelerated to 1.6%. compared to the previous quarter, which ended in March.

The S & P-ASX 200 fell 0.3% in Australia to 7,021.80, while the Indian Sensex opened 0.4% to 48,585.72. New landland անդ Indonesia declined as Singapore and Bangkok moved forward.

On the Wall Street, the S&P 500 moved on Monday, reaching 4187.62. Nasdaq gained 0.9% to 14138.78. The Dow slipped 0.2% to 33,981.57.

About a quarter of S&P 500 companies reported quarterly results so far this profitability season. 84% of them earned the revenue that topped Wall Street estimates, according to FactSet.

Markets will also focus Wednesday on President Biden’s keynote address to Congress on possible details of infrastructure spending and tax reform.

At the New York Mercantile Exchange, the brand of American oil products increased by 29 cents to $ 62.20 per barrel. The contract fell 23 cents to $ 61.91 on Monday. In London, Brent oil, used to quote international oils, increased by 32 cents per barrel, to $ 65.35 per barrel.

The dollar rose 108.22 yen from 108.12 on Monday. The euro fell to $ 1.2074 from $ 1.2092.


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