Beijing: Asian stock markets declined Friday after Wall Street hit a new high on optimism about economic stimulus and coronavirus vaccine development despite a spike in US unemployment claims.
Shanghai, Tokyo and Hong Kong retreated.
Overnight, Wall Street’s benchmark S&P 500 index gained for a third day on optimism about progress in Washington toward a new economic aid package while the government reported the highest level of new jobless claims in three months.
Market action suggested investors see bad data is good news for progress toward a stimulus, said Mizuho Bank in a report.
The Nikkei 225 in Tokyo lost 0.2% to 26,760.30 while the Shanghai Composite Index was down less than 0.1% at 3,403.87. The Hang Seng in Hong Kong lost 0.7% to 26,490.37.
The Kospi in Seoul lost less than 0.1% to 2,770.22 and Sydney’s S&P-ASX 200 sank 0.7% to 6,710.00. New Zealand, Singapore and Jakarta also retreated.
Investors have been waiting since before the American presidential election Nov. 3 for legislators to agree on new aid to replace unemployment benefits that are expiring.
That loss in income undercuts consumer spending that powers the biggest global economy and demand for imports from Asian and other suppliers.
The Labour Department reported the number of Americans applying for unemployment benefits rose to 885,000 last week, the highest level since September.
Progress in developing and distributing coronavirus vaccines has helped to buoy optimism the U.S. economy might start to recover next year.
Democrats and Republicans in Congress are locked in a fight divided by party lines over the size and scope of an aid package at a time when the economy is showing fresh signs of stalling due to pressure from the pandemic.
Despite that, the S&P 500 rose 0.6% on Thursday to 3,722.48. The Dow Jones Industrial Average gained 0.5% to 30,303.37. The Nasdaq added 0.8% to 12,764.75.
Investors received more encouragement from the Federal Reserve, which helped shore up the markets early in the pandemic.
The central bank has again pledged to keep buying bonds until the economy makes substantial progress. Still, the Fed has said it can only do so much to tide over the economy and that more financial support from Washington is critical for a continued recovery.
In energy markets, benchmark U.S. crude lost 13 cents to 48.23 per barrel in electronic trading on the New York Mercantile Exchange. It rose 54 cents on Thursday to 48.36. Brent crude, the price standard for international oils, declined 21 cents to 51.29 per barrel in London. The contract rose 42 cents the previous session to 51.50.
The dollar gained to 103.36 yen from Thursday’s 103.11 yen. The euro declined to 1.2251 from 1.2264. (Agency)
Your email address will not be published. Required fields are marked *
Save my name, email, and website in this browser for the next time I comment.
Withheld some a/cs within India, to continue advocating right of free expression: Twitter
New generation ICD with latest technology implanted at SSH Jammu
Arthritis drug no better than standard care for severe COVID-19, says study
People shouldn’t hesitate to get vaccinated, listen to scientists: Delhi’s 1st COVID patient
Rupee tanks 67 paise to 73.10 against US dollar in early trade
Gold falls Rs 148, silver declines Rs 886
Rupee gains 14 paise to 72.32 against US dollar in early trade
Gold jumps Rs 337; silver shoots up by Rs 1,149
Rupee surges 16 paise to 72.33 against US dollar in early trade
Download 10Cric Casino app, and enjoy Indias most popular casino games, directly on your mobile!
Gamble with real money online! Play Indias favourite casino games at 7Jackpots.com, Indias most trusted online casino site.
© 2020 State Times Daily Newspaper | Powered by Ideogram Technology Solutions [P] Ltd.