Asian stocks are mixed as investors grappled with the weak economic data from China and waited to see the outcome of a top Communist Party policy meeting in Beijing
Asian stocks were mixed on Tuesday as investors grappled with the weak economic data from China and waited to see the outcome of a top Communist Party policy meeting in Beijing.
U.S. futures rose while oil prices fell.
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Japan’s benchmark Nikkei 225 rose 0.6% to 41,399.72 after reopening from a holiday.
Hong Kong’s Hang Seng index declined 1.5% to 17,747.65 and the Shanghai Composite index fell 0.4% to 2,963.25.
Markets were still digesting the set of weaker economic data of China released Monday, when the government reported that annual economic growth had fallen from 5.3% in the first quarter to 4.7% in the April to June quarter.
This led some economists to cut their growth forecasts. Goldman Sachs revised its forecast for China’s annual economic growth to 4.9% from a previous estimate of 5.0%. JP Morgan cut their full-year outlook for China’s 2024 GDP growth to 4.7% from an earlier projection of 5.2%.
Further policies were expected to be released during this week’s four-day economic meeting, a closed-door plenary meeting of the ruling Communist Party. It is expected to set strategies and policies for the coming decade, in line with leader Xi Jinping's push to pursue advances in future technologies.
South Korea’s Kospi added 0.3% to 2,869.15 and Australia’s S&P/ASX 200 edged 0.1% lower to 8,011.10.
The Dow Jones Industrial Average climbed 0.5% to 40,211.72 and set its own record, while the Nasdaq composite added 0.4% to 18,472.57 and ended a bit short of its high.
Trump could get an immediate bump in his support in polls, as President Ronald Regan did in 1981, according to Isaac Boltanksy, director of policy research at BTIG, and “Trump’s defiance following the attack could be the defining image of this election cycle.”
Yields for longer-term Treasurys also pushed higher than shorter-term ones, and the 10-year Treasury yield climbed to 4.22% from 4.19% late Friday. Something similar happened after last month’s debate between Trump and President Joe Biden, when traders maneuvered in anticipation of a Republican sweep in November that could ultimately mean policies that would raise the U.S. government’s debt.
Stocks of big financial companies, which could benefit from a lighter regulatory touch from a Republican administration, also helped lead the market. JPMorgan Chase climbed 2.5% and was one of the strongest forces pushing the S&P 500 higher.
For roughly a year, the Fed has been keeping its main interest rate at the highest level in more than two decades. Lower rates would release pressure that’s built up on the economy because of how expensive it’s become to borrow money to buy houses, cars, or anything on credit cards. Fed officials, though, have been saying they want to see “more good data” on inflation before making a move.
In remarks before the Economic Club of Washington, Federal Reserve Chair Jerome Powell said again on Monday he won’t send any signals about when the Fed may cut interest rates. But he also said Fed officials understand the risks of waiting both too long and not long enough. Too-late cuts could push the U.S. economy into a recession, while too-aggressive cuts could allow inflation to reaccelerate.
Brent crude, the international standard, gave up 21 cents to $84.64 per barrel.
The U.S. dollar rose to 158.56 Japanese yen from 158.01 yen. The euro fell to $1.0891 from $1.0894.
AP Business Writer Stan Choe contributed.
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