Asian stocks were mixed on Tuesday as investors grappled with weak economic data from China and awaited the outcome of a key Communist Party policy meeting in Beijing.
US futures rose as oil prices fell.
Japan’s benchmark Nikkei 225 rose 0.2% to 41,275.08 after reopening after a holiday.
Hong Kong’s Hang Seng index fell 1.4% to 17,760.36 and the Shanghai Composite index fell 0.1% to 2,970.945.
The markets were still processing a series of weaker economic data from China published on Monday, in which the government reported that annual economic growth had fallen to 4.7% in the April-June quarter from 5.3% in the first quarter.
This led some economists to lower their growth expectations. Goldman Sachs revised its forecast for China’s annual economic growth down from a previous estimate of 5.0% to 4.9%. JP Morgan lowered its full-year forecast for China’s GDP growth in 2024 to 4.7% from a previous forecast of 5.2%.
More policies were expected to be released this week four-day economic meetinga closed plenary session of the ruling Communist Party. It is expected to shape strategies and policies for the coming decade, in line with leader Xi Jinping’s push for advances in future technologies.
South Korea’s Kospi rose 0.2% to 2,865.21 and Australia’s S&P/ASX 200 fell 0.2% to 7,999.30.
Wall Street was positive on Monday momentum kept driving it up.
The S&P500 rose 0.3% to 5,631.22, finishing just below last week’s all-time high. It’s coming off its 10th winning week in the last 12, largely lifted by expectations that inflation is decreasing enough to the Federal Reserve to cut interest rates soon.
The Dow Jones Industrial Average rose 0.5% to 40,211.72, setting its own record, while the Nasdaq Composite rose 0.4% to 18,472.57, finishing just shy of its all-time high.
Among the market’s best-performing sectors are those that would perform best as former President Donald Trump’s chances of being elected increase. Trump media & Technology Groupthe company behind Trump’s Truth Social platform, jumped 31.4%. Bitcoin surged above $64,000 after Trump, who has portrayed himself as a crypto friendly candidatesurvived an attempted murder during the weekend.
Yields on longer-dated Treasuries also rose higher than those on short-dated Treasuries, with the yield on the 10-year Treasury rising to 4.22% from 4.19% Friday night. Something similar happened after the debate between Trump and President Joe Biden as traders maneuvered ahead of a Republican victory in November, which could ultimately mean policy changes that increase the US national debt.
Shares of big financial companies, which could benefit from a lighter regulatory approach from a Republican administration, also helped lead the market. JPMorgan Chase climbed 2.5% and was one of the strongest forces driving the S&P 500 higher.
Investment bank Goldman Sachs rose 2.6% after reporting stronger profit and sales for the latest quarter than analysts expectedBlackRock, the asset manager behind the iShares exchange-traded funds, fell 0.6% after profit beat expectations but revenue disappointed.
For about a yearthe fed is keeping its key interest rate at its highest level in more than two decades. Lower rates would ease pressure on the economy that has built up because of how expensive it has become to borrow money to buy housescars, or anything else on credit cards. Fed officials, have said They want to see “more good data” on inflation before taking action.
In a speech to the Economic Club of Washington, Federal Reserve Chairman Jerome Powell said: again He will not signal Monday when the Fed might cut interest rates. But he also said Fed officials understand the risks of waiting too long and too short. Cutting too late could push the U.S. economy into recession, while cutting too aggressively could send inflation racing again.
In other trading, U.S. benchmark crude lost 59 cents to $81.32 a barrel in electronic trading on the New York Mercantile Exchange.
Brent crude, the international standard, fell 56 cents to $84.29 a barrel.
The US dollar rose to 158.51 Japanese yen from 158.01 yen. The euro fell to 1.0893 dollars from 1.0894.