TOKYO (AP) — Asian shares were mostly higher on Tuesday, with Tokyo’s stock index hitting a fresh record high after Wall Street’s index hit another milestone.
Japan’s benchmark Nikkei stock average rose 2.0% to close at a record high of 41,580.17, briefly surpassing its previous intraday high.
Technology stocks led the gains, with computer chip maker Tokyo Electron jumping 3.8%, chip-testing equipment maker Advantest rising 4.1%, precision machinery maker Disco Inc. rising 2.5%, and Shin-Etsu Chemical Co., which supplies silicon and other materials for chips, rising 2.7%.
Australia’s S&P/ASX 200 rose 0.9% to 7,829.70. South Korea’s KOSPI rose 0.3% to 2,864.85. Hong Kong’s Hang Seng Index rose 0.3% to 17,577.60 and the Shanghai Composite Index added 1.3% to 2,959.74.
“Risk taking is still likely to remain more cautious this week, with testimony from the Federal Reserve Chairman and the release of key US inflation data,” IG market analyst Yep Jun Rong said in a commentary.
On Wall Street, the S&P 500 and Nasdaq Composite each hit new all-time highs. The S&P 500 rose 0.1% to 5,572.85, while the Nasdaq rose 0.3% to 18,403.74. The Dow Jones Industrial Average closed down 0.1% to 39,344.79.
Wall Street stock indexes have risen steadily in recent months, helping to propel the benchmark S&P 500 index to a record 35 so far this year.
Gains in technology stocks, including several semiconductor makers, helped cushion losses in the communication services, energy and other sectors of the S&P 500. Nvidia rose 1.9%, Broadcom gained 2.5% and Advanced Micro Devices closed up 3.9%.
Corning, the specialty glass maker, jumped 12% on Monday, the market’s biggest gainer, after raising its sales forecast.
Boeing rose 0.5% after the struggling aircraft maker pleaded guilty to fraud charges stemming from two crashes of its 737 Max jetliner that killed 346 people. The government said the company Violated the contract He has defended himself against prosecution for more than three years.
Entertainment giant Paramount Global The company fell 5.3%, the biggest drop among S&P 500 stocks, after agreeing to merge with Skydance.
Traders are keeping their eye on several earnings reports this week, including Delta Air Lines’ earnings release on Thursday.
JPMorgan, Citigroup and Wells Fargo report earnings on Friday, and the banks’ latest earnings releases could give Wall Street a clearer view into how consumers are dealing with rising debt and whether banks are worried about potential payments or late payments.
Federal Reserve Chairman Jerome Powell will address Congress on Tuesday and Wednesday as the central bank keeps its benchmark interest rate at its highest in more than two decades to tame inflation.
Fed Goals The goal is to bring inflation down to 2% without slowing economic growth too much. Inflation is still weighing on consumers, but it’s down significantly from its peak two years ago. Economic growth has slowed this year but remains relatively strong thanks to a strong job market and consumer spending.
“The first day of testimony is always the most important one, as it gives an idea of the overall tone and key messages. Some expect Chairman Powell to strike a cautious tone on inflation developments and tell US politicians to be patient until the Fed has enough evidence that inflation is on a solid track towards its 2% target,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
The central bank is due to get a further update on consumer-level inflation on Thursday, and Wall Street expects the latest government report to show inflation falling to 3.1% in June from 3.3% in May.
A report on inflation at the wholesale level, before costs are passed on to consumers, is due to be released on Friday.
In the bond market, Treasury yields remained relatively stable. The yield on the 10-year Treasury note fell to 4.27% from Friday’s close of 4.28%.
In energy trading, benchmark U.S. crude rose 8 cents to $82.41 a barrel, while the international standard Brent crude added 9 cents to $85.84 a barrel.
In the foreign exchange market, the US dollar rose slightly to 160.90 yen from 160.80 yen.
The euro was at $1.0831, little changed from $1.0827.
