HONG KONG — Asian shares were mixed on Wednesday as US benchmarks touched more records following the latest signs from the US economy can delay without ending up in a recession.
U.S. futures were mixed and oil prices fell.
Tokyo’s Nikkei 225 index climbed 0.2% to 38,570.86, while Japanese trade data for May showed exports rose 13.5% while imports rose 9.5% on a year rather, pushed higher by rising prices and the weaker value of the yen against the US dollar.
The minutes of the Bank of Japan’s latest policy meeting showed an ongoing debate among its decision-makers over whether yen weakness could push inflation higher. Governor Kazuo Ueda has hinted that he will raise interest rates in the coming months, depending on economic data at the time.
“The moves in the Nikkei reflect a lot of indecision, with trading in the index in a broad consolidation phase so far,” IG Asia said in a commentary.
Hong Kong’s Hang Seng rose 2.9% to 18,437.57, while the Shanghai Composite index lost 0.4% to 3,018.05 after the head of China’s securities watchdog said at a financial forum in Shanghai that the agency would lose its oversight on all financial activities to prevent potential risks. risks.
In Sydney the S&The P/ASX 200 fell 0.1% lower to 7,769.10. South Korea’s Kospi rose 1.2% to 2,797.33.
Elsewhere, Taiwan’s Taiex rose 2%, while Bangkok’s SET fell 0.7%.
On Tuesday the S&The P500 added 0.3% to 5,487.03, hitting a record high for the 31st time this year. The Nasdaq index rose less than 0.1% to 17,862.23. The Dow Jones Industrial Average gained 0.2% to 38,834.86.
Nvidia was again the star, gaining 3.5% and acting as the strongest force driving the S&P500 upwards. It once again lifted the total market value further above $3 trillion.
Nvidia’s chips are helping to develop AI, which proponents expect will change the world as much or more than the internet, and demand for its chips has proven shockingly voracious. Nvidia’s revenue routinely triples every quarter, and profits are skyrocketing at an even more breathtaking pace. Shares are up nearly 174% this year, with Nvidia alone responsible for nearly a third of the S&The entire profit of P500 for the year through May.
Of course, one potential danger from a handful of superstars responsible for most of the US stock market’s record run is a more vulnerable market. If more stocks were to participate, it could be a signal of a healthier market.
The Commerce Department reported that retail sales rose 0.1% in May, lower than the pace economists expected, while April sales were revised down – down 0.2% from unchanged. Turnover increased by 0.6% in March and 0.9% in February. This comes after sales fell 1.1% in January, partly due to bad weather
The weaker-than-expected data could be a warning sign that the main engine of the US economy, household spending, is creaking. Inflation is still high, even if it has slowed from the peak lower-income households especially have difficulty keeping up with the more expensive prices.
Still, a survey of global fund managers by Bank of America found they are the most bullish on equities since fall 2021, hiding relatively little in cash and holding large equity allocations. Fewer executives are also calling for a “hard landing,” with the economy entering a severe recession.
In other trades Wednesday, U.S. benchmark crude lost 20 cents to $80.51 a barrel in electronic trading on the New York Mercantile Exchange.
Brent crude lost 23 cents to $85.10 a barrel.
The dollar fell from 157.87 yen to 157.71 Japanese yen. The euro fell from $1.0738 to $1.0732.
