Asian stocks track Wall St decline amid weak US services data

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BEIJING –
Asian stock markets followed Wall Street’s decline on Wednesday after US services activity weakened.

Market benchmarks in Tokyo, Hong Kong and Seoul fell. Shanghai has moved forward.

Overnight, Wall Street’s benchmark S&P 500 broke a seven-day record-breaking streak and fell after the Institute of Supply Management reported service sector activity increased in June at a slower pace than expected.

The “disappointing fall” suggests that the US recovery “is not immune” from the global pockets of coronavirus resurgence, Mizuho Bank said in a report.

The Nikkei 225 in Tokyo lost 1% to 28,366.95 and the Hang Seng in Hong Kong lost 0.9% to 27,813.25.

The Shanghai Composite Index rose 0.7% to 3,557.19 after the Chinese firm said it would impose tighter data security and other standards on Chinese companies wishing to join foreign exchanges.

The announcement, at a time when Beijing is tightening control over tech industries, is a potential hurdle for Chinese entrepreneurs who have raised billions of dollars overseas. It comes after rideshare service Didi Global Inc. was ordered to stop registering new users and remove its app from online stores while tightening customer information security.

The Kospi in Seoul fell 0.6% to 3,285.34 while the S & P-ASX 200 in Sydney gained 0.9% to 7,326.90.

The Indian Sensex opened 0.2% higher to 52,948.94. New Zealand, Singapore and Jakarta fell.

On Wall Street, the S&P lost 0.2% to 4,343.54 on Tuesday, led by losses for banks and energy companies. The index is up 15.6% over the year.

The Dow Jones Industrial Average fell 0.6% to 34,577.37. The Nasdaq Composite rose 0.2% to 14,663.64.

The ISM Purchasing Managers Index fell to 60.1 from May’s high of 64.0 on a 100-point scale on which numbers above 50 show increased activity. It was well below the 63.3 expected by forecasters polled by the Wall Street Journal.

The travel, hospitality and other service industries have boomed as US restrictions on consumer activity relax.

This pushed up US prices, but the latest move could support the Federal Reserve’s stance that the inflation spike is temporary. This could help reassure investors. The Fed and other central banks will not feel pressure to curb price increases by reversing economic stimulus.

Also on Tuesday, Didi stock fell 19.6% in New York. This follows a 5% drop on Friday after Chinese regulators said they were investigating information security at Didi and two other ride tech companies. Full Truck Alliance, the operator of two truck logistics platforms, lost 6.7% and Kanzhun Ltd., an online recruiting company, fell 15.9%.

Amazon surged 4.7% after the Pentagon announced it was canceling a cloud computing contract with rival Microsoft that could have ended up being worth $ 10 billion and that it would pursue a deal with Microsoft and Amazon instead. . Microsoft stocks have changed little.

In energy markets, benchmark US crude gained 37 cents to $ 73.74 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell from $ 1.79 to $ 73.37 on Tuesday. Brent crude, the base of international oil prices, added 32 cents to $ 74.85 a barrel in London. It plunged from $ 2.63 the previous session to $ 74.53.

The dollar gained 110.72 yen from 110.63 on Tuesday. The euro rose to $ 1.1828 from $ 1.1826.


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