Asian stocks rise following uptick on Wall Street

Business

A woman walks past a bank’s electronic board showing the Hong Kong share index at Hong Kong Stock Exchange Tuesday, Aug. 3, 2021. Asian stock markets followed Wall Street lower on Tuesday as jitters about the coronavirus’s delta variant dented enthusiasm about strong corporate profits. (AP Photo/Vincent Yu)

SINGAPORE (AP) — Asian stocks were mostly higher Wednesday as traders mirrored overnight gains on Wall Street during another busy earnings week.

The Kospi in South Korea advanced 0.9% to 3,264.78 and the Hang Seng in Hong Kong added 1.5% to 26,589.87. The Shanghai Composite index gained 0.3% to 3,458.31.

Sydney’s S&P/ASX 200 was also 0.3% higher at 7,497.40. Tokyo’s Nikkei 225 fell 0.1% to 27,612.29, however.

Shares edged higher in Singapore, Indonesia and the Philippines but fell in Malaysia.

Traders are awaiting U.S. jobs data due Friday. They are also watching the coronavirus’ delta variant spreading in the U.S., Europe and Asia, and particularly in China.

Although China’s recent outbreak is small, infecting hundreds rather than the thousands and tens of thousands of people sickened in outbreaks elsewhere, it is by far the worst China has had since the pandemic’s emergence in the central city of Wuhan a year and a half ago.

“The small but significant rise in cases in China is grabbing attention,” Robert Carnell of ING said in a note.

“Tough restrictions on movement and travel already in place will likely bring the desired results. But the delta variant is a particularly slippery little critter, and the concern for us, and we imagine, many others, is how quickly this will occur, and at what economic cost in the meantime,” he said.

Over on Wall Street, technology and health care companies spurred indexes higher on Tuesday. The S&P 500 overcame a wobbly start to finish 0.8% higher, at 4,423.15.

Earnings have boosted sentiments. Roughly nine out of 10 companies on the S&P 500 index have posted earnings that beat analysts’ expectations. Over a 100 more companies will table reports this week.

The Dow Jones Industrial Average added 0.8% to 35,116.40, while the Nasdaq composite picked up 0.6% to 14,761.29. The Russell 2000 index of smaller company stocks rose 0.4% to 2,223.58.

Some traders sold US-listed Chinese companies. E-commerce giant Alibaba Group slipped 1.4% and internet search giant Baidu Inc. fell 1.5% on Tuesday.

Games and social media giant Tencent Holdings Ltd. plunged 7.3%. Its Hong Kong-listed shares added 2.5% on Wednesday.

Concerns are brewing over the China’s crackdown on technology, Edward Moya of Oanda said.

“US-listed Chinese companies are getting battered as some investors don’t have the stomach for this regulatory shakedown,” he added.

In energy markets, benchmark U.S. crude lost 19 cents to $70.37 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the price basis for international oils, shed 5 cents to $72.36 per barrel in London.

The U.S. dollar retreated to 109.04 Japanese yen from 109.05 yen on Tuesday. The euro rose to $1.1875 from $1.1868.

Copyright 2021 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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