Rosalind Evans
In a trading environment tinged with caution, Asian shares essentially witnessed an upward trajectory. This shift can be attributed to the ripples of the United States’ job market concerns.
Leading the way, Hong Kong’s Hang Seng surged by an impressive 2.1%, settling at 17,418.95. The market was strongly inclined toward property and technology stocks, especially those with substantial losses in previous sessions. However, not all sailed smoothly, as China Evergrande’s shares took a hit, plummeting by 6.3%.
Japan’s Nikkei 225 experienced a minor setback, declining by 0.3% and finishing at 31,129.06. On the brighter side, Australia’s S&P/ASX 200 and South Korea’s Kospi made positive strides, with increases of 0.5% and 0.3% respectively.
China remained off the trading map, observing a holiday. Markets are expected to resume activities on Monday.
Across the Pacific, Wall Street showcased a subdued demeanour. The S&P 500, Dow Jones, and Nasdaq composite reflected marginal declines. One of the prevailing concerns continues to be the escalating Treasury yields that have been putting pressure on stock prices. The influence of the Federal Reserve’s decision to hike its primary interest rate is palpable. This strategic move, the most significant since 2001, aims at countering inflation by slowing down the job market.
A highlight in the bond market was the 10-year Treasury yield, which settled at 4.71%, slightly below its earlier rate of 4.73%. The 10-year Treasury, a linchpin in the bond market, can impact the broader economy with its yield movements.
Clorox faces a downturn in company-specific updates after anticipating losses from a cybersecurity attack. Rivian Automotive’s shares dropped drastically after revealing plans to raise capital through debt. Conversely, Lamb Weston reaped benefits, marking an 8% rise in claims after posting profits surpassing expectations.
The oil market, too, had its share of fluctuations. U.S. benchmark crude noted a rise, while the price of U.S. crude experienced a sharp drop recently. Brent crude also saw an increment, reaching $84.37 per barrel.
Currency trading saw the U.S. dollar gaining ground against the Japanese yen while the Euro took a slight dip against the dollar.
In summary, the global financial landscape is teeming with activity, influenced by internal market decisions and external factors like the U.S. job market. Traders and investors will surely keep a vigilant eye on developments, especially with the upcoming report on the U.S. job market.
