Asian Markets Lowered on Delta Variant Worries
Highlights:
- USA
The Dow Jones advanced by 0.62% or 220.30 points, to 35,484.97. The S&P 500 gained 0.25% or 10.95 points, to 4,447,70.
The Nasdaq fell by a slight 0.16% or 22.95 points, to 14,765.13.
- ASIA
The Nikkei ended with a drop of 0.20%or 55.49 points.
The Kospi lost 0.38% or 12.24 points, hit by a slump in technology companies.
The Hang Seng cut 0.53% or 142.34 points to 26,517.82. - EUROPE
- The EuroStoxx 50 index advanced by 0.13%, and the Stoxx 600 gained 0.04%.
Wall Street Set Records after US Inflation Data
Wall Street closed this Wednesday in mixed terrain. Still, two of its leading indicators, the Dow Jones and the selective S&P 500, registered records after the good inflation data for July in the United States.
According to data at the close of the New York Stock Exchange, the Dow Jones advanced by 0.62% or 220.30 points, to 35,484.97. The S&P 500 gained 0.25% or 10.95 points, to 4,447,70.
As for Nasdaq, it fell by a slight 0.16% or 22.95 points, to 14,765.13.
US inflation rate remained at a 13-year high in July
Inflation remained high in July as the economic recovery continued. Still, prices presented evidence of cooling amid pandemic-related supply problems. There were also signs that the recent advance in coronavirus infections is beginning to limit some business activity.
According to Jack Albin, Chief Investment Officer at Cresset Capital Management in Chicago, this is good news. It helps the Fed stay calm.
Inflation has dictated market moves in recent months. Investors fearing higher price pressures could force the Federal Reserve to ease back on its super-loose accommodative stance sooner than expected.
Albin says that inflation increasing at a slower rate fits the Fed’s narrative. Thus, they can stick with their current strategy.
Another positive sentiment for the stock market was the United States Senate passing a bipartisan infrastructure package worth $1 trillion on Tuesday. There are also plans to invest an additional $3.5 trillion to fight climate change and poverty but face strong opposition from Republicans.
With the new infrastructure bill, equipment maker Caterpillar Inc and Deere & Co, construction materials supplier Vulcan Materials Co and steelmaker Nucor Corp increased in early trading.
By sectors, the highest gain basic materials, industrial and financial sectors posted the highest gains.
Only the health sector ended in red, with a slip of 0.97%.
Among the thirty Dow Jones stocks, the increases of Caterpillar surged by 3.55%. Meanwhile, Walgreens raised by 2.66%, and Dow Inc added 1.77%.
On the other hand, Visa dropped the most, yielding 1.26%, UnitedHealth lost 0.98%, and Nike shed 0.58%.
Nikkei leaked amid worries about a rebound in Covid-19
The Tokyo Stock Exchange closed this Friday with a decrease due to fears of a rebound in the Covid-19 transmission and cautious investors after several days on the rise.
The Nikkei ended with a drop of 0.20%or 55.49 points to 28,015.02. Meanwhile, the broader Topix index fell by 0.03% or 0.53 points to 1,953.55.
Due to the strong rebound in covid-19 infections and securing profits after four consecutive days of advances, investors were cautious today.
The land and air transport sectors, as well as fishing and agriculture, reaped the main losses.
Among the equities with the biggest capitalization, the technology group Softbank lost 0.84% , and the Japanese automobile leader Toyota Motor slipped by 0.13%.
Also noteworthy is the 0.53% decline in the video game company Nintendo and Fast Retailing, the parent company of the fashion chain Uniqlo, with a decrease of 0.27%.
Carrier Nyk Line advanced by 2.54%; Lasertec, the electronic components manufacturer, gained 0.29%.
In the first section, 1,160 stocks advanced, and 881 ones fell. Meanwhile, 144 shares ended unchanged. Trading volume amounted to 2.3 trillion yen.
Kospi fell for the sixth consecutive day
The Seoul Stock Exchange fell for the sixth session in a row today. Once again, it resulted from setbacks of large South Korean Technology companies. Besides, the stock market was affected mainly by the Nasdaq Index closing down.
The Kospi lost 0.38% or 12.24 points to stand at 3,208.38. Meanwhile, the Kosdaq technology index reduced by 0.21%, or 2.17 points, to 1,054.09.
Foreign investors today dumped a net 1.8 trillion won in local securities, the highest since May 12. In total, according to local analysts, the South Korean stock market today sold some 1.5 trillion won worth of South Korean tech stocks.
The transportation equipment and chemical industries rose due to strong global electric vehicle sales and expansion into the United States and Europe. However, electric and electronic industries such as Samsung Electronics and SK Hynix continued to weaken due to the decline of the investment rating by the Global Investment Bank amid concerns about the industry situation. The technological Samsung Electronics lost 1.91% today, and SK Hynix cut 4.74%.
In the biopharmaceutical sector, Samsung Biologics subsided by 0.31%, and its competitor Celltrion lost 0.53%.
Naver plunged by 1.01%, but Kakao gained 2.43% today.
On the other hand, Hyundai Motor, the main South Korean carmaker, rose by 0.23%.
Hang Seng falls in lousy session for Chinese insurers
The Hang Seng closed today with losses led by insurance companies. Investors fear that the sector will become the next target of Beijing’s regulatory campaign.
The Hang Seng cut 0.53% or 142.34 points to 26,517.82. At the same time, the Hang Seng China Enterprises sank by 0.87%.
Among the sub-indices, only the Services sector expanded by 1.02%. In contrast, commerce and industry lost 0.17%, real estate shed 0.42%, and finance slid by 1.23%.
The biggest loser of the session was HKEX, which shrank by 3.54%. The banking giant HSBC made the biggest gain adding 0.57%. Its local subsidiary, Hang Seng Bank, climbed by 0,68%.
In real estate, CG Services lost 2.64% and weighed more than rises. Henderson Land advanced by 1.28%.
The day has not been profitable for digital giants. Alibaba tumbled by 1.31%. Meanwhile, Tencent shrank by 0.41%, and Meituan decreased by 0.25%.
As for Chinese state securities, oil companies advanced. Petrochina accumulated a rise of 2.1%. However, the session has not been favourable for the telephone operator China Mobile which shed 0.3%.
The business volume of the session was 135,860 million Hong Kong dollars.
European stock market paused after recent records
The main European stock markets started the day without any significant changes. They paused after touching new highs after the companies good earnings season and the latest inflation figures in the US, which decreased the possibility of monetary tightening from the Fed.
The EuroStoxx 50 index advanced by 0.13%, and the Stoxx 600 gained 0.04%.
In Paris, the CAC 40 index climbed by 0.08% to 6,863.19 points. In Frankfurt, the Dax gained 0.07%, while in London, the FTSE lost 0.23%.
