Asian shares mostly lower on strong China price data

Shares declined in Hong Kong, Shanghai, Sydney and Seoul.On Thursday, stocks closed moderately higher on Wall Street, lifted by gains in large technology companies that benefit from lower bond yields.

PTI | Bangkok | Updated: 09-04-2021 10:55 IST | Created: 09-04-2021 10:55 IST
Asian shares mostly lower on strong China price data

Shares fell Friday in most Asian markets after China reported a stronger than expected rise in prices that could prompt authorities to act to cool inflation. Japan's benchmark Nikkei 225 index rebounded after falling the day before. Shares declined in Hong Kong, Shanghai, Sydney and Seoul.

On Thursday, stocks closed moderately higher on Wall Street, lifted by gains in large technology companies that benefit from lower bond yields. But an increase in jobless claims dented some of the buying enthusiasm. China reported that consumer prices rose in March due to a jump in fuel prices, while producer prices climbed at the fastest pace in more than four years. The consumer price index rose 0.4 per cent in March compared with minus 0.2 per cent in February, as fuel prices jumped nearly 12 per cent from a year earlier. Prices paid by manufacturers rose 4.4 per cent from a year earlier. Inflation reflects rising demand as China's economy leads the world recovery from the pandemic. Worries that stronger growth might spur inflation that regulators in many major economies would then move to cool, partly by raising interest rates, have been overhanging the markets for the past several months. Added to that, a fresh round of US sanctions, this time against seven Chinese supercomputer makers, has revived concern over trade friction between the two largest economies, said Jeffrey Halley of Oanda.

“Asian markets are once again adopting a more cautious posture today. Geopolitics is never far from the surface, even if it is often lost in the global recovery noise,'' Halley said in a report. The Shanghai Composite index lost 0.7 per cent to 3,456.74 and the Hang Seng in Hong Kong also fell 0.7 per cent to 28,798.07. Australia's S&P/ASX 200 gave up 0.2 per cent to 6,985.20 and the Kospi in Seoul declined 0.1 per cent to 3,137.84. Japan's Nikkei 225 rose 0.4 per cent to 29,814.51. Shares in Sony Corp. rose 2.7 per cent after the company signed an exclusive movie distribution deal with Netflix. On Thursday, the S&P 500 index gained 0.4 per cent to 4,097.17, another record high following records set on Monday and Wednesday. The Dow Jones Industrial Average gained 0.2 per cent, to 33,503.57. The tech-heavy Nasdaq composite climbed 1 per cent to 13,829.31.

Small company stocks, which have been outpacing the broader market this year, also had a good showing. The Russell 2000 index of smaller companies picked up 0.9 per cent, to 2,242.60. The index is up 13.6 per cent so far this year, while the S&P 500, which tracks large companies, is up 9.1 per cent.

Stocks have benefited this week as bond yields, which had been steadily ticking higher, retreated from highs hit earlier in the month. The yield on the 10-year U.S. Treasury note, which influences interest rates on mortgages and other loans, fell to 1.63 per cent from 1.65 per cent late Wednesday. It had been as high as 1.75 per cent on Monday. That pullback in yields took some pressure off technology stocks, which have slipped over the last few months as yields jumped, making those shares look pricey. The sector has also seen choppy trading as investors shift more money into companies that stand to benefit from the economic recovery.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION / BLOG / INTERVIEW

Tracking Fintech during COVID-19: Harnessing power of technology

Its abundantly clear now that as fintech cements its place in the financial sector, accelerated further by the COVID-19 pandemic, it could open the sector to new possibilities by harnessing the power of technology to deliver financial ...

Tectonic turns: How technology shaped healthcare over the decades

Tracing an episodic evolution, with technology at the interface of human and his health....

World Water Day sees crises of inequality in countries both rich and poor

... ...

Privacy and data protection: Reviewing notable policy frameworks

The evolved privacy principles and the resulting legislation across the world primarily aim to force the data collector to define the purpose for which the data is being collected along with the need to obtain explicit consent for the said ...

Videos

Latest News

WRAPUP 2-China's exports rise at robust pace in March, imports growth highest in 4 years

Chinas exports grew at a robust pace in March in yet another boost to the nations economic recovery as global demand picks up amid progress in worldwide COVID-19 vaccination, while import growth surged to the highest in four years. The data...

Festivals showcase India's diversity, spirit of Ek Bharat, Shreshtha Bharat: PM Modi

Prime Minister Narendra Modi on Tuesday extended his wishes on the beginning of Navratri and offered his wishes to various regions and communities celebrating the new year as per their traditional calendar. Taking to twitter PM Modi said, O...

President Kovind greets nation on Chaitra Navaratri, other festivals

President Ram Nath Kovind on Tuesday greeted people on the first day of Navaratri, and offered his best wishes to various regions and communities celebrating their new year as per the traditional Hindu calendar. Greetings to fellow citizens...

Lahore hospitals run out of oxygen supply amid rising coronavirus cases

Amid a rise in the number of coronavirus cases in the city, several Lahore hospitals have run out of oxygen supply on Monday. About 1,100 coronavirus patients in government hospitals need oxygen, while almost 250 patients are on a ventilato...

Give Feedback