Stock market today: Asian shares mixed after Wall Street hits 2023 high

Asian stocks were mixed on Monday, following Wall Street’s 20-month high. This week will bring important U.S. inflation data and the Federal Reserve’s year-end rate decision.

As oil prices increased to partially offset their sharp declines in recent months, U.S. futures fell.

The Shanghai Composite fell 0.6% to 2,952.57, while the Hang Seng in Hong Kong fell 2% to 16,012.42.

At their annual planning meeting last week, Chinese leaders decided to increase spending to speed up the country’s economy, which is the second largest in the world. However, specific policy changes were not disclosed.

The Chinese economy grew by about 5% this year, meeting government targets, but the recovery from the tight COVID-19 restrictions was fleeting, and next year is predicted to see a slowdown. In yet another sign of weakness, data released on Saturday revealed that China’s consumer prices fell in November at their fastest rate in three years.

The Kospi in Seoul fell 0.1% to 2,514.56, while the Nikkei 225 index in Tokyo increased 1.6% to 32,817.61. S&P/ASX 200 Australia was essentially unchanged.

Bangkok’s SET increased by 0.2%, while India’s Sensex increased by 0.4%.

The S&P 500 reached its highest point in two years on Friday due to an improved-than-expected report on the job market in the United States. It increased 0.4% to 4,604.37, good for a sixth consecutive week of gains for the index.

It hasn’t had a streak like that in four years. The primary gauge of Wall Street’s health is currently only 4% off its all-time high set at the beginning of the year.

The Nasdaq composite increased by 0.4% to 14,403.97, while the Dow Jones Industrial Average increased by 0.4% to 36,247.87.

Following the report indicating that U.S. employers added more jobs last month than economists had predicted, yields increased more sharply in the bond market. Additionally, wages for workers increased more than anticipated, and the jobless rate unexpectedly declined.

For the time being, at least, the robust data have allayed fears of a potential recession, and the stocks of certain businesses whose earnings are strongly correlated with the health of the economy have increased. Of the 11 stocks, energy-related stocks saw the largest gain sectors that make up the S&P 500, rising 1.1% as oil prices strengthened amid hopes for more demand for fuel.

After announcing that it had reached an agreement to sell its security division, Global Access Solutions, to Honeywell for $4.95 billion, Carrier Global surged 4.5%, making it one of the largest gains in the market.

Alphabet, the parent company of Google, fell 1.4% and weighed the most on the S&P 500. It had jumped the day before, amidst fanfare surrounding the introduction of its most recent AI product. Microsoft, Apple, and Nvidia were among the other major tech companies whose stocks were rising.

RH ended up losing as well. The company that makes home furnishings fell 14% after revealing lower-than-expected quarterly results.

On Wednesday, the Fed will make its next interest rate announcement. The US government will release its report on consumer inflation on Tuesday.

More positive news was provided on Friday by a different preliminary report. The report stated that the expectations of U.S. consumers for inflation in the upcoming year have decreased to 3.1% from 4.5% a month ago, which is the lowest level since March 2021. The Fed has stated that it monitors these expectations because it believes a rise could start a domino effect that would maintain high inflation.

A barrel of benchmark U.S. oil increased by 40 cents to $71.63 in the oil market, but it is still more than $20 below its September level. It has been falling due to concerns that the world’s supply won’t be able to keep up with demand from the global economy.

The global benchmark, Brent crude, increased by 45 cents to $76.29 per barrel.

In exchange rates, the US dollar increased from 144.93 Japanese yen to 145.40 yen. From $1.0761 to $1.0766, the euro appreciated.

- Published By Team Nation Press News