HONG KONG (AP) — Asian stock markets were mixed on Tuesday after shares rose on Wall Street and yields surged in the U.S. Treasury market. Election-related issues upset Expanding into markets around the world.
U.S. crude futures fell and oil prices rose. The Japanese yen was trading at 161.67 to the dollar early Tuesday, near its lowest level in 38 years.
The Nikkei Stock Average on the Tokyo market rose 1.1% to 40,74.69 as the weak yen led to buying of export-related stocks.
Australia’s S&P/ASX 200 fell 0.4% to 7,718.20. South Korea’s KOSPI fell 0.8% to 2,781.92, even as data from Statistics Korea showed the country’s consumer price inflation slowed to an 11-month low in June.
Hong Kong markets rose after the holiday break on Monday, with the Hang Seng Index up 0.3% to 17,775.84 and the Shanghai Composite Index rising 0.1% to 2,995.78.
Meanwhile, Taiwan’s Taiex rose 0.6%, while Bangkok’s SET fell 0.4%.
On Monday, the S&P 500 rose 0.3%, to 5,475.09, the Dow Jones Industrial Average rose 0.1%, to 39,169.52 and the Nasdaq Composite rose 0.8%, to 17,879.30.
The strongest performance in the world came across the Atlantic, where the CAC 40 index in Paris rose 2.8 percent before settling down to a 1.1 percent gain. Far-right parties may not win an overwhelming majority French parliamentary elections have raised hopes of a potential deadlock within the French government to avert the worst-case scenario of a far-right majority. A policy that would significantly increase the French government’s debt.
This is a year of elections around the world, and voters A poll in the UK will be held later this week And soon elsewhere. In the United States, pollsters Last week’s debate Between President Joe Biden and former President Donald Trump.
Investors are also Supreme Court ruling The U.S. Supreme Court ruled Monday that former presidents have broad immunity from prosecution, meaning criminal proceedings against President Donald Trump will likely be delayed until after the November election.
Trump Media & Technology Group, whose shares have risen and fallen on the back of Trump’s possible White House entrance, rose 1% to $33.08. But shares of the company that runs Trump’s Truth social platform are still well below their all-time high of about $70 earlier this year.
Treasury yields surged, just as they did on Friday immediately after the Biden-Trump debate, as the growing likelihood of a Republican victory in November sent traders circling back to the moves they made in 2016, according to strategists at Morgan Stanley. In addition to rising interest rates, traders also bet on shares of energy and financial companies.
The yield on the 10-year Treasury note rose to 4.46% from Friday’s close of 4.39% and Thursday’s close of 4.29%, a reversal of the general trend since the spring, when the 10-year Treasury yield rose above 4.70% in late April.
Yields had fallen sharply on hopes that inflation would slow enough to persuade the Fed to act. lower key interest rates They fell from their highest levels in more than 20 years in the second half of the year. hit the US economy By making it more expensive Borrow money for a housecars, anything.
Expectations of a rate cut were maintained after the US signalled hopes of a rate cut in a report on Monday. Manufacturing industry weakens Prices rose more than economists expected last month. Perhaps more importantly for Wall Street, a report from the Institute for Supply Management said price growth is slowing. Taken together, the data could provide further evidence that the Federal Reserve wants to see inflationary pressures subside before cutting interest rates.
The highlight of the week’s economic story is likely to come on Friday, when the US government reports how many workers it hired in June. Economists expect the overall payroll to fall to 190,000 from 272,000 in May, putting it closer to what Bank of America calls the “Goldilocks” number of about 150,000 with a drop to around 25,000.
At that level, the U.S. economy would continue to grow and avoid a recession without being strong enough to put undue upward pressure on inflation.
In other trading, benchmark U.S. crude rose 15 cents to $83.53 a barrel in electronic trading on the New York Mercantile Exchange, while the international standard Brent crude added 23 cents to $86.83 a barrel.
The euro fell to $1.0729 from $1.0738.
