Asian shares mixed after broad rally on Wall Street
PTI, Dec 3, 2021, 10:32 AM IST
Representative Image
Tokyo: Stocks were mixed in Asia on Friday after a broad rally on Wall Street as investors kept an eye on the spread of the new coronavirus variant and measures governments are taking to restrain it.
Hong Kong slipped more than 1% while Tokyo edged lower. Shanghai and Seoul were higher while Sydney was nearly unchanged.
Chinese ride-hailing service Didi Global Inc said Friday it will pull out of the New York Stock Exchange and shift its listing to Hong Kong as the ruling Communist Party tightens control over tech industries.
The Securities and Exchange Commission has moved to require that US-listed foreign stocks like Didi disclose their ownership structures and audit reports, which could lead to some of them being delisted.
Hong Kong’s Hang Seng fell 1.2% to 23,510.15, while the Nikkei 225 in Tokyo edged 0.2% lower, to 27,692.34. In Seoul, the Kospi gained 0.4% to 2,957.86. Sydney’s S&P/ASX 200 was less than 0.1% higher, at 7,228.50. The Shanghai Composite index gained 0.5%, to 3,590.49.
In New York, Southeast Asia’s largest ride-hailing company Grab fell 20.5% in its market debut Thursday, following a $40 billion merger in a special purpose acquisition company deal.
The recent rebound may prove to be short-lived, Craig Erlam of Oanda said in a commentary.
“Early signs aren’t promising given the rate of case increases in South Africa and the fact that omicron is already popping up in numerous other countries,” Erlam said. Investors may be “hoping for positive news on the vaccine effectiveness against the new strain and taking advantage of these levels before it’s too late. If they don’t get the news they’re hoping for, we could see another sharp move lower”.
The S&P 500 rose 1.4% on Thursday, its biggest gain since mid-October, to 4,577.10. The Dow gained 1.8% to 34,639.79. The Nasdaq added 0.8% to 15,381.32, held back by a modest drop in Apple, which fell 0.6% after the iPhone maker reportedly warned suppliers that it is seeing weak demand ahead of the holiday season.
The Russell 2000 jumped 2.7% to 2,206.33.
Travel-related companies, which got hammered earlier this week as worries about the new coronavirus variant swept markets, rebounded Thursday. American Airlines climbed 7%, while Delta Air Lines rose 9.3%. Cruise line operators Carnival and Norwegian Cruise Line jumped 9.2% and 7.7%, respectively.
Boeing rose 7.5% after China’s aviation regulator cleared the airplane maker’s 737 Max to return to flying with technical upgrades.
The market rebound comes as investors try to gauge the amount of damage the omicron variant of COVID-19 might inflict on the economy, and measures the US and other governments are taking to restrain it. Trading has been choppy all week and, despite the latest gains, every major index is on track for a weekly loss.
Countries have been imposing barriers to travel and stricter restrictions on businesses and people. Concerns about global restrictions potentially crimping economic growth joined worries over rising inflation, which has prompted the Federal Reserve to consider withdrawing stimulus measures sooner than expected.
The yield on the 10-year Treasury slipped to 1.42% from 1.44% late Thursday.
US crude oil prices rose after OPEC and allied oil-producing countries decided Thursday to stick to their plans to boost output via steady, modest monthly increases in oil releases, even as the omicron variant adds more uncertainty over the global economic recovery from the pandemic. Energy companies gained ground. Chevron rose 2.7%.
Early Friday, US benchmark crude oil had gained 98 cents to $67.48 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the standard for pricing international oils, gained 89 cents to $70.56 per barrel.
The US dollar rose to 113.14 Japanese yen from 113.06 yen late Thursday. The euro slipped to $1.1297 from $1.1300.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
PHF Leasing Limited announces hiring of over 200 people over the next two quarters
Patanjali advertising case: SC asks Ramdev, Balkrishna to appear before it
Markets surrender early gains to trade lower
US Fed interest rate decision key event to watch out for this week: Analysts
DGCA sticks to June 1 deadline for revised flight duty norms; says aim is to alleviate pilot fatigue
MUST WATCH
Latest Additions
Suspected honor killing: Couple brutally murdered
PM Modi’s ‘400 paar’ claim ‘hollow’, INDIA bloc will get clear majority to form govt: Baghel
UP: Head constable held for killing government teacher, govt announces Rs 25 lakh ex gratia to kin
Gelatin sticks with detonators & other explosives recovered in Bengaluru, case filed
KPCC urges poll panel to reschedule election date in Kerala