Asian markets showed mixed performance on Tuesday, reflecting Wall Street's uneven results, where gains in oil-and-gas producers balanced declines in Nvidia and other Big Tech stocks, reports AP.
Japan’s Nikkei 225 dropped 1.8% to 38,469.58 after reopening following a Monday holiday. Australia’s S&P/ASX 200 gained 0.4% to 8,220.50, South Korea’s Kospi edged down 0.1% to 2,489.33, Hong Kong’s Hang Seng rose 1.5% to 19,163.92, and China’s Shanghai Composite jumped 2.2% to 3,229.99.
Asian shares decline amid concerns over rate cuts and tariffs
“Japan’s markets are catching up after last week’s sell-off,” said Yeap Jun Rong, market strategist at IG. Japan’s Finance Ministry reported a 54.5% year-on-year increase in the country’s current account for November, reaching 3.4 trillion yen ($21 billion).
On Wall Street, the S&P 500 rose 0.2% after recovering from an earlier 0.9% drop. The Dow Jones Industrial Average climbed 0.9%, while the Nasdaq composite fell 0.4%, weighed down by Big Tech.
Recent pressure on stocks stems from concerns about the Federal Reserve’s potential rate cuts this year. While lower rates would boost the economy, inflation above the Fed’s 2% target and signs of a resilient U.S. economy have cast doubt on whether any rate cuts will occur in 2025. High rates have been pushing down prices of investments, especially those deemed overvalued.
Nvidia, which had nearly quintupled in value over three years due to AI enthusiasm, fell 2%, the biggest drag on the S&P 500. Apple slipped 1%, and Meta Platforms lost 1.2%, further weighing on the index. Moderna plunged 16.8% after forecasting lower-than-expected 2025 revenue and accelerating cost-cutting efforts.
Macy’s dropped 8.1% on weaker-than-expected revenue projections, and Edison International lost 11.9% amid ongoing Southern California wildfires. Fire officials are investigating whether the utility’s equipment caused the Hurst fire.
Oil-and-gas companies rose as crude prices climbed. Benchmark U.S. crude gained 2.9% to $78.82 per barrel on Monday, while Brent crude rose 1.6% to $81.01. Exxon Mobil increased 2.6%, and Valero Energy surged 4.9%. Early Tuesday, U.S. crude fell 37 cents to $78.45 per barrel, and Brent crude dropped 43 cents to $80.58.
Stock market today: Asian shares advance though China economic data weaker than expected
U.S. Steel rose 6.1% after the Biden administration extended the deadline for its acquisition by Japan’s Nippon Steel to June. Intra-Cellular Therapies soared 34.1% after Johnson & Johnson announced plans to acquire it for $132 per share. Johnson & Johnson rose 1.7%.
The S&P 500 closed at 5,836.22, up 9.18 points. The Dow added 358.67 points to 42,297.12, while the Nasdaq fell 73.53 points to 19,088.10.
Treasury yields continued their upward trend, with the 10-year yield rising to 4.78% from 4.76% on Friday, after being below 3.65% in September. Rising yields could pressure stock prices unless companies deliver higher profit growth.
In currency markets, the U.S. dollar strengthened to 157.70 Japanese yen from 157.26 yen, while the euro declined to $1.0255 from $1.0274.