Tokyo – Asian stocks broadly rose on Thursday despite lingering concerns about the US banking sector and inflationary pressures weighing on investor sentiment.
Japan’s benchmark Nikkei 225 recovered from the morning’s decline, rising nearly 0.1% to 28,436.84. Australia’s S&P/ASX 200 dropped his 0.3% to 7,292.70. South Korea’s Kospi rose 0.4% to 2,495.29. Hong Kong’s Hang Seng rose 0.4 percent to 19,827.02 and the Shanghai Composite he rose 0.6 percent to 3,282.94.
Some benchmarks fell in morning trading, but then rebounded, US first quarter economic growth data at a later date.
On Wall Street on Wednesday, the S&P 500 fell 0.4% to 4,055.99. The Dow Jones Industrial Average fell 0.7% to 33,301.87 while the Nasdaq Composite rose 0.5% to lead the market at 11,854.35.
US stocks fell from the worst day of the month on concerns over the strength of US banks.The spotlight was the toughest First Republic Bankfell another 29.8% after nearly halving the day before, after revealing how many customers bolted amid last month’s industry turmoil.
The worry is that it and other smaller banks could struggle to run deposits from customers, similar to what sparked last month’s financial crisis. Failure Silicon Valley Bank and Signature Bank. Even without further shutdowns, industry struggles could trigger a rollback in bank lending, weakening the economy.
activision blizzardmeanwhile, fell 11.4% after UK regulators blocked an acquisition by Microsoft over concerns it would hurt competition in the cloud gaming market.
big tech bloom
While most stocks fell microsoft and other big tech companies prevented a sharp drop in the market.
Microsoft is up 7.2% after reporting better-than-expected earnings in the first three months of the year. It is heavily weighted as the second largest stock in the S&P 500 index.
Technology stocks are the best performers this year so far as they lay off workers and cut other costs to improve profitability. Hopes that the US Federal Reserve (Fed) will pull back from the barrage of rate hikes have helped.
Google’s parent companyAlphabet posted a bigger-than-expected profit, but its stock fell 0.2% after reporting the first consecutive decline in advertising revenue for a year since it became a public company in 2004. .
FED and interest rates
All banks are fighting much higher interest rates. Interest rates have risen over the past year, tightening the twists in the economy and financial markets.
The Federal Reserve’s key overnight rate is at its highest level since 2007. High interest rates slow down the economy as a whole and lower the price of investment.
Aside from cracks in the banking system, high interest rates have slowed housing, manufacturing and other industries. On the other hand, the employment market remains relatively strong.
Orders for long-lasting products in March were stronger than expected, according to Wednesday’s report.
In the bond market, 10-year government bond yields rose to 3.43% from 3.40% late Tuesday. Helps set interest rates for mortgages and other loans. Two-year Treasury yields, which track the Federal Reserve’s (Fed) forecasts more closely, fell to 3.92% from 3.95% late Tuesday.
In energy trading, US benchmark crude rose 24 cents to $74.54 a barrel in electronic trading on the New York Mercantile Exchange. International benchmark Brent crude rose 36 cents to $78.05 a barrel.
In currency trading, the US dollar rose from ¥133.66 to ¥133.76. The euro rose from $1.1042 to $1.1059.
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https://www.local10.com/business/2023/04/27/stock-market-today-asian-shares-rise-despite-banking-fears/ Asian stocks rise despite bank concerns