Chinese markets in Shanghai soared on Tuesday after reopening following a weeklong holiday. However, they later gave up some of their initial gains as officials in Beijing detailed plans to revive the second-largest economy in the world.
The Shanghai Composite index was up 5.5% at 3,519.88, while Japan’s smaller market in Shenzhen gained 5.3%. Initially, the Shanghai benchmark saw a 10% increase but retreated as officials from China’s main economic planning agency discussed policies aimed at addressing issues like a property market slump.
Meanwhile, Hong Kong’s Hang Seng dropped 5.8% to 21,758.45 as traders sold to secure profits from recent gains.
“China’s markets rally has hit a wall, leaving investors deflated. The reopening surge from the week-long holiday barely had time to gather steam before fizzling out, and now the once-thrilled bulls are licking their wounds,” Stephen Innes of SPI Asset Management said in a commentary.
In other parts of Asia, markets mostly trended lower. Tokyo’s Nikkei 225 index decreased by 1.2% to 38,861.09 as the dollar weakened against the Japanese yen. A weaker yen typically pushes share prices higher.
The Kospi in Seoul fell by 0.5% to 2,596.38, while Australia’s S&P/ASX 200 saw a slight gain of 0.2% to 8,187.10.
In the US, stocks slid on Monday as Treasury yields reached their highest levels since the summer and oil prices continued to rise. The S&P 500 dropped by 1% to 5,695.94, with the Dow Jones Industrial Average falling by 0.9% and the Nasdaq composite sinking by 1.2%.
Investors are closely watching Treasury yields, which are affecting the attractiveness of stocks and other investments. Higher yields may be influenced by rising oil prices due to tensions in the Middle East. Brent crude fell to $79.70 per barrel, while US crude slipped to $75.90.
Big Tech stocks like Apple, Amazon, and Alphabet faced downward pressure from higher Treasury yields. However, Nvidia saw a rise in its stock price. As the corporate earnings reporting season begins, companies will need to deliver stronger profits to drive stock prices higher.
Overall, the market landscape remains uncertain as investors navigate through various economic indicators and global events that impact stock performance.
Author: AP Business Writer Stan Choe in New York
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