TOKYO — Asian stocks were mostly higher on Tuesday amid a global sell-off in technology stocks, including Japan’s SoftBank, which reported hefty losses as markets slumped.
Such concerns are on top of concerns about inflation and what central banks will do to curb its trend. Rising interest rates tend to have a negative effect on stock prices.
Stocks fell in Tokyo but rose in other regional markets. US Futures ES00,
YM00,
It soared as oil prices fell.
Japanese technology investor SoftBank Group Corp. 9984,
It fell more than 4% in Tokyo trading. On Monday, it reported a record quarterly loss of $23 billion. Chinese e-commerce giant Alibaba BABA,
9988,
It has trailed a vast investment portfolio.
Analysts who monitor Asian markets said regional tensions also remained a risk as tensions flared up between China and Taiwan after U.S. House Speaker Nancy Pelosi’s recent visit to Taiwan.
China has said it has escalated menacing military exercises around Taiwan, disrupting shipping and air traffic and raising trade concerns further.
“It is worth tracking the geopolitical situation, as major deployments on the China/Taiwan front could affect overall risk demand. China expands military exercises around Taiwan. After confirming that, the military will conduct “regular” exercises east of the central line in the Taiwan Strait,” said Anderson Alves of ActivTrades.
Japanese benchmark Nikkei 225 NIK,
It fell 0.8% in morning trading. Australian S&P/ASX 200 XJO,
South Korea’s Kospi 180721, up 0.3%
increased by 0.2%. Hang Seng HSI in Hong Kong,
Jumping 0.9%, Shanghai Composite SHCOMP
increased by 0.3%. Stocks rise 9999 yen in Taiwan,
Indonesia JAKIDX,
Markets in Singapore are closed for a public holiday.
There are also concerns that COVID-19 cases are on the rise in some Asian countries, potentially impacting the supply chains that are the lifeblood of the region’s largest manufacturers.
Tech stocks were the biggest drag on Wall Street on Monday. S&P 500 SPX,
It fell 0.1% to 4,140.06 and Nasdaq COMP.
12,644.46, down 0.1%. Dow Jones Industrial Average DJIA,
It closed 0.1% higher at 32,832.54.
Recent volatility in the market could help determine whether the Federal Reserve’s efforts to cool the economy and keep inflation in check are working, or whether the central bank will continue to aggressively raise rates. It happened as investors were preparing for a busy week of economic updates. Wall Street worries the Fed will hit the brakes too hard and trigger a recession.
The Fed is expected to raise short-term rates by another 0.75 points at its next meeting.
Quincy Crosby, chief global strategist at LPL Financial, said: “Early signs of inflationary pressures appear to be easing and this will be an important catalyst for markets.
The benchmark S&P 500 Index is up three straight weeks.
The US Department of Labor is due to release its July report on consumer prices on Wednesday and its report on wholesale prices on Thursday.
This week’s inflation update follows last week’s report that the job market remains strong. While this is good for the economy, it complicates the Fed’s efforts to contain inflation.
Investors are still weighing the latest round of corporate earnings, which could also provide more detail on how inflation is hurting consumers and businesses.
Clean energy companies gained support following Senate approval of the Democratic Party’s big election-year economic package, which includes funds to help fight climate change. First Solar he rose 4.7%.
Bond yields fell. Yields on 10-year US Treasuries, which affect rates on mortgages and other consumer loans, fell to 2.76% from 2.83% late Friday.
In energy trading, benchmark US crude CLU22,
In electronic trading on the New York Mercantile Exchange, oil fell 23 cents to $90.53 a barrel. It rose $1.89 to $90.76 a barrel on Monday.
Brent Crude BRNV22,
The international benchmark dropped 22 cents to $96.43 a barrel.
In currency trading, the US dollar USDJPY,
It fell from 134.98 yen to 134.78 yen.
.
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