Asian stocks fall sharply on concerns over China outlook | WGN Radio 720
BANGKOK (AP) — Asian stocks mostly fell on Tuesday as markets remained nervous over the outcome of the Communist Party Congress in China, which saw a key reformist removed from the top ranks of ruling leadership.
Hong Kong’s benchmark failed to sustain its early gains after falling 6.4% the day before, ending at its lowest close in more than a decade. Tokyo and Sydney rose, while Shanghai, Seoul and Mumbai fell.
US futures rose 0.1% while oil prices fell.
Chinese stocks plummeted following the conclusion of the Communist Party Congress, which saw President Xi Jinping serve an unprecedented third five-year term in unprecedented Beijing, installing key allies as the ruling party’s supreme leader and pushing for market reforms. defeated officials who were considered sectarians.
Xi wants to expand the Communist Party’s role in China’s business and technological development, raising concerns that centralized control will stifle an already slowing economy.
But that may not mean a big policy change, said ING’s Iris Pang.
The reason is that “most, if not all, existing policy decisions are in agreement with President Xi. increase.”
At a press conference on Tuesday, Hong Kong leader John Lee urged investors to make cautious decisions, but his administration’s assessments show market activity is proceeding in an orderly fashion. said to show.
“There will certainly be more volatility, but we have long-tested systems and response systems that are always up and running. We have strong response plans for a range of contingencies,” he said.
Hong Kong’s Hang Seng Index fell 0.2% to 15,151.01, while the Shanghai Composite Index fell 0.1% to 2,975.08 from its previous gain. Taiwan’s benchmark he fell 1.5%.
Tokyo’s Nikkei 225 index rose 1.2% to 27,301.50 while Seoul’s Kospi fell 0.1% to 2,235.07. Australia’s S&P/ASX 200 rose 0.3% to 6,798.60. India’s Sensex fell 0.3%.
On Wall Street on Monday, stocks extended their gains from last week as investors geared up for a big week of gains from big tech companies.
The S&P 500 rose 1.2% to 3,797.34, with technology, healthcare and financial stocks accounting for the bulk of the gains. Only materials and real estate stocks fell.
The Dow Jones Industrial Average rose 1.3% to 31,499.62, while the tech-heavy Nasdaq Composite Index rose 0.9% to close at 10,952.61.
Small business stocks also rose. The Russell 2000 Index rose his 0.4% to 1,748.40.
Google’s parent company, Facebook’s parent company Amazon and Apple, have all reported their latest financial results this week. They are among the most expensive stocks in the benchmark S&P 500, and earnings this week could mean a big move up or down for the broader market.
Several large companies outside the tech sector also report earnings this week, including Coca-Cola, General Motors and Caterpillar.
Trading has been volatile this month, but major indices are up solidly in the last week of October after some big market gains last week. The S&P 500 is up 5.9% so far this month and the Dow is up 9.7%. Nasdaq more modestly he is up 3.6%.
Investors are carefully examining the latest corporate earnings to get a better sense of the impact of inflation on various sectors of the economy. Prices for everything from clothing to food are at their highest levels in 40 years. This has forced businesses to raise prices and cut costs, putting pressure on consumers.
The U.S. Federal Reserve (Fed) and central banks around the world are raising interest rates to keep inflation in check, and these increases are making low-risk bonds look more attractive in volatile stock markets. , which weighs on more expensive stocks such as technology companies.
The Fed is expected to raise interest rates by another three-quarters of a percentage point at its scheduled meeting in November.
Economists and investors fear central banks will slow economic activity too much, triggering a recession. They are looking for signs that could ease rate hikes. The US economy is already slowing and contracting in the first half of this year. The US government will release its third quarter Gross Domestic Product report on Thursday.
In other trading, the dollar rose to 148.97 yen from 148.94 yen. The euro fell from 98.75 cents to 98.63 cents.
The benchmark US crude remained unchanged at $84.58 per barrel. Brent crude, the international price benchmark, fell 8 cents to $91.13 a barrel.
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AP journalist Alice Fung contributed from Hong Kong.
https://wgnradio.com/news/business-news/ap-asian-shares-mostly-lower-on-worries-over-china-outlook/ Asian stocks fall sharply on concerns over China outlook | WGN Radio 720