Asian markets slip despite Wall Street’s gains after Biden-Xi talks
TOKYO — Asian shares slipped Wednesday despite a rally on Wall Street. In Japan, the benchmark reversed earlier gains that had come on the yen trading lower recently, boosting the profits of exporters.
Japan’s benchmark Nikkei 225
NIK,
fell 0.4%. South Korea’s Kospi
180721,
fell 1%. Australia’s S&P/ASX 200
XJO,
lost 0.9%. Hong Kong’s Hang Seng
HSI,
fell 0.5%, while the Shanghai Composite
SHCOMP,
gained 0.2%. Stocks declined in Singapore
STI,
but gained in Taiwan
Y9999,
and Indonesia
JAKIDX,
Virtual talks between U.S. President Joe Biden and Chinese President Xi Jinping late Monday U.S. time appeared to signal a step in the right direction but failed to produce any major, market-boosting news.
“Any concrete development from the meeting still awaits to be seen, but the amiable approach thus far in addressing issues from both parties pares down the risks of political tension in markets,” said Yeap Jun Rong, market strategist at IG in Singapore.
Stocks closed higher on Wall Street as investors reviewed solid earnings reports from big retailers and a surprisingly strong report on consumer spending.
The government reported that Americans largely shrugged off higher prices last month and stepped up their spending at retail stores and online. The Commerce Department said retail sales rose 1.7% in October. That’s the biggest gain since March and up from 0.8% in the previous month.
“It reiterates the strength of the U.S. consumer, but you have to wonder a bit as inflation expectations rise, are people rushing to get in front of that,” said Mike Stritch, chief investment officer at BMO Wealth Management.
The S&P 500 index
SPX,
rose 0.4%, to 4,700.90 and is sitting just below the record it set on Nov. 8. The Dow Jones Industrial Average
DJIA,
rose 0.2%, to 36,142.22. The Nasdaq
COMP,
rose 0.8%, to 15,973.86.
Investors received another encouraging economic update from the Federal Reserve, which said industrial production rebounded in October with a 1.6% gain. The gain followed a 1.3% plunge in September.
Wall Street is closely monitoring the latest economic reports for more clues as to how businesses and consumers are dealing with rising inflation. Companies have been raising prices as they face higher raw materials costs and supply chain problems. Consumers have been willing to pay the higher prices on many goods, though analysts are concerned that consumers could eventually pull back on spending because of inflation.
Heightened concerns over inflation tripped up the broader market last week following a strong run that lasted several weeks as companies…
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