Asian shares were mostly higher Tuesday after U.S. stocks stormed back from sharp losses to log strong gains.
Tokyo and Seoul advanced, while Sydney fell.
Shanghai fell back on renewed concerns over pandemic lockdowns that might further crimp the world’s second-largest economy and hinder global economic growth.
The Shanghai Composite index fell 0.9% to 2902. 46, giving up early gains. It fell to 5.1% Monday.
Hong Kong’s Hang Seng, which lost 3.7% on Monday, was trading 0.7% higher at 20,000.69.
The Kospi in Seoul gained 0.5% to 2,669. 41 after the government reported the South Korean economy grew at a 3.1% annual pace in the first quarter of the year, up 0.7% from the previous quarter. The government has lifted COVID regulations to allow the economy to recover from the effects of the pandemic. This is because case numbers are down after the introduction of the micron variant.
” This should lead to a rebound in the most vulnerable parts of service industry. A further decrease in the amount of precautionary savings could provide an additional boost to consumption,” Alex Holmes, Capital Economics commented in a comment. He said that private consumption is still below levels pre-pandemic. “There’s plenty of room for recovery.”
In Tokyo, the Nikkei 225 rose 0.4% to 26,700. 11 and India’s Sensex gained 1.2% to 57,254.49.
Australia’s S&P/ASX 200 dropped 1.9% to 7,331.30.
US. benchmark oil gained 92 cents to $99. 46 per barrel in electronic trading on the New York Mercantile Exchange. The oil price dropped $3. 53 to $98. 54 on Monday.
Brent crude oil gained $1. 23 cents to $103. 39 per barrel.
The dollar slipped to 127. 89 Japanese yen from 128. 14 yen late Monday. Euro rose to $1. 0727 from $1.0713.
On Monday, the S&P 500 climbed 0.6% to 4,296. 12 after erasing an early 1.7% loss. Stocks of internet-related businesses, such as Twitter, led the rally. Elon Musk, Tesla CEO, soared 5.7% following his purchase.
The Dow Jones industrial average rose 0.7% to 34,049. 46, while the Nasdaq composite rallied 1.3% to 13,004.85.
The S&P 500 is coming off a three-week losing streak, dogged by worries about the Federal Reserve’s plans to move faster in raising interest rates to curb high inflation.
Gains for several big tech-related stocks were the strongest forces lifting the S&P 500 Monday, including a 2.4% gain for Microsoft and a 2.9% rise for the Class A shares of Google’s parent, Alphabet.
Both will report their quarterly results Tuesday.
Wall Street are in one of the busiest periods of earnings season. This week, Apple, Microsoft and Amazon, as well as the parent company Google, will all be reporting. Since they’re among the biggest companies by market value, their movements hold the most sway over the S&P 500.
There are concerns that the Fed’s big interest rate increases could cause a sharp slowdown or even a decline in the U.S. economic growth.
Investors are looking to see how large companies, in technology, retail, and industrial sectors, are dealing with rising inflation and supply-chain issues.
Inflation remains a key concern for investors. Investors worry about the Fed’s ability to raise rates sufficiently to reduce inflation, but not enough to trigger a recession. According to the Federal Reserve chair, the Fed may increase short-term interest rates twice the normal amount during its next meeting. This will take place starting next week. The Fed has already raised its key overnight rate once, the first such increase since 2018.
Wall Street also will receive key economic data this week. On Tuesday, the Conference Board will publish its April measure of consumer confidence. On Thursday, the Commerce Department will publish its first quarter gross domestic product report.