Asian shares mostly rose Thursday after U.S. President Donald Trump agreed with Russian leader Vladimir Putin to start talks about ending the war in Ukraine.
The possibility that Trump may pause some of the tariffs he has announced was also a cause for optimism in Asian markets.
The upswing came despite a decline on Wall Street on Wednesday after a report showed inflation is worsening for Americans.
Japan’s benchmark Nikkei 225 jumped 1.3% in morning trading to 39,474.80. Australia’s S&P/ASX200 added 0.2% to 8,550.70. South Korea’s Kospi gained 0.9% to 2,572.37. The Hang Seng surged 0.9% to 22,051.16, while the Shanghai Composite edged down 0.2% to 3,339.22.
On Wall Street, the S&P 500 dropped 0.3%, though it had been on track for a much worse loss of 1.1% at the start of trading. The Dow Jones Industrial Average sank 225 points, or 0.5%, while the Nasdaq composite edged higher by less than 0.1%.
The losses were pared as the price of oil eased. A barrel of benchmark U.S. crude fell 2.7% to below $72 after Trump said he had agreed with Russia’s president to begin “negotiations” on ending the war in Ukraine. Such a move could free up the global movement of crude.
In Thursday’s energy trading, benchmark U.S. crude fell 62 cents to $70.75 a barrel. Brent crude declined 65 cents to $74.53.
On Wall Street, Exxon Mobil sank 3% as oil-and-gas companies fell broadly following the 2.4% drop for the price of a barrel of Brent on Wednesday.
Wall Street’s overall momentum remained downward, and the majority of stocks fell. Treasury yields also remained notably higher in the bond market, cranking up the pressure on financial markets after the morning’s report said U.S. consumers had to pay higher prices for eggs, gasoline and other costs of living than economists expected.
Overall inflation was 3% for U.S. consumers in January. That was worse than the 2.9% inflation rate in December, which is what economists expected to see again.
The inflation report suggested not only that pressure on U.S. households’ budgets is amplifying but also that traders on Wall Street were correct to forecast the Federal Reserve will deliver less relief for Americans through lower interest rates this year.
The Fed had cut its main interest rate sharply from September through the end of last year, intending to make borrowing cheaper, help the economy and boost prices for stocks, bonds and other investments. But the Fed warned at the end of 2024 it may not cut rates by as much in 2025 because of worries about inflation staying stubbornly high. Its goal is to keep inflation at 2%.
Some investors were betting on the Fed not cutting rates at all in 2025, even before Wednesday’s report on the consumer price index.
“The hotter than expected CPI confirms investors’ anxiety regarding too-hot inflation that will keep the Fed on the sidelines,” said Sameer Samana, head of global equities and real assets at Wells Fargo Investment Institute.
January’s reading doesn’t account for any of the tariffs that Trump has recently announced, with possibly more on the way, which economists expect will raise prices for imports further.
Following January’s discouraging inflation data, traders are betting on a 29% chance the Fed will not cut rates at all this year, according to data from CME Group. That’s up from a less than 20% chance seen the day before.
Such expectations sent the yield on the 10-year Treasury up to 4.62% from 4.54% late Tuesday.
When a 10-year Treasury, which is seen as one of the safest investments possible, is paying that much in interest, investors are less likely to pay high prices for stocks, which carry a higher risk of seeing their prices go to zero. That puts downward pressure on U.S. stock prices, which critics say already look too expensive after running to repeated records last year, with the latest for the S&P 500 coming last month.
Among earnings reports, CVS Health jumped 14.9% after easily topping Wall Street’s revenue and profit expectations for the latest quarter. But ride-hailing app Lyft fell 7.9% despite reporting stronger earnings than expected.
All told, the S&P 500 fell 16.53 points to 6,051.97. The Dow Jones Industrial Average dropped 225.09 to 44,368.56, and the Nasdaq composite added 6.09 to 19,649.95.
In currency trading, the U.S. dollar fell to 154.22 Japanese yen from 154.31 yen. The euro cost $1.0404, up from $1.0386.
___
AP Business Writer Stan Choe contributed.
Asian shares are mostly higher after U.S. President Donald Trump agreed with Russian leader Vladimir Putin to start talks about ending the war in Ukraine.
TOKYO – Asian shares mostly rose Thursday after U.S. President Donald Trump agreed with Russian leader Vladimir Putin to start talks about ending the war in Ukraine.
The possibility that Trump may pause some of the tariffs he has announced was also a cause for optimism in Asian markets.
Recommended Videos
The upswing came despite a decline on Wall Street on Wednesday after a report showed inflation is worsening for Americans.
Japan’s benchmark Nikkei 225 jumped 1.3% in morning trading to 39,474.80. Australia’s S&P/ASX200 added 0.2% to 8,550.70. South Korea’s Kospi gained 0.9% to 2,572.37. The Hang Seng surged 0.9% to 22,051.16, while the Shanghai Composite edged down 0.2% to 3,339.22.
On Wall Street, the S&P 500 dropped 0.3%, though it had been on track for a much worse loss of 1.1% at the start of trading. The Dow Jones Industrial Average sank 225 points, or 0.5%, while the Nasdaq composite edged higher by less than 0.1%.
The losses were pared as the price of oil eased. A barrel of benchmark U.S. crude fell 2.7% to below $72 after Trump said he had agreed with Russia’s president to begin “negotiations” on ending the war in Ukraine. Such a move could free up the global movement of crude.
In Thursday’s energy trading, benchmark U.S. crude fell 62 cents to $70.75 a barrel. Brent crude declined 65 cents to $74.53.
On Wall Street, Exxon Mobil sank 3% as oil-and-gas companies fell broadly following the 2.4% drop for the price of a barrel of Brent on Wednesday.
Wall Street’s overall momentum remained downward, and the majority of stocks fell. Treasury yields also remained notably higher in the bond market, cranking up the pressure on financial markets after the morning’s report said U.S. consumers had to pay higher prices for eggs, gasoline and other costs of living than economists expected.
Overall inflation was 3% for U.S. consumers in January. That was worse than the 2.9% inflation rate in December, which is what economists expected to see again.
The inflation report suggested not only that pressure on U.S. households’ budgets is amplifying but also that traders on Wall Street were correct to forecast the Federal Reserve will deliver less relief for Americans through lower interest rates this year.
The Fed had cut its main interest rate sharply from September through the end of last year, intending to make borrowing cheaper, help the economy and boost prices for stocks, bonds and other investments. But the Fed warned at the end of 2024 it may not cut rates by as much in 2025 because of worries about inflation staying stubbornly high. Its goal is to keep inflation at 2%.
Some investors were betting on the Fed not cutting rates at all in 2025, even before Wednesday’s report on the consumer price index.
“The hotter than expected CPI confirms investors’ anxiety regarding too-hot inflation that will keep the Fed on the sidelines,” said Sameer Samana, head of global equities and real assets at Wells Fargo Investment Institute.
January’s reading doesn’t account for any of the tariffs that Trump has recently announced, with possibly more on the way, which economists expect will raise prices for imports further.
Following January’s discouraging inflation data, traders are betting on a 29% chance the Fed will not cut rates at all this year, according to data from CME Group. That’s up from a less than 20% chance seen the day before.
Such expectations sent the yield on the 10-year Treasury up to 4.62% from 4.54% late Tuesday.
When a 10-year Treasury, which is seen as one of the safest investments possible, is paying that much in interest, investors are less likely to pay high prices for stocks, which carry a higher risk of seeing their prices go to zero. That puts downward pressure on U.S. stock prices, which critics say already look too expensive after running to repeated records last year, with the latest for the S&P 500 coming last month.
Among earnings reports, CVS Health jumped 14.9% after easily topping Wall Street’s revenue and profit expectations for the latest quarter. But ride-hailing app Lyft fell 7.9% despite reporting stronger earnings than expected.
All told, the S&P 500 fell 16.53 points to 6,051.97. The Dow Jones Industrial Average dropped 225.09 to 44,368.56, and the Nasdaq composite added 6.09 to 19,649.95.
In currency trading, the U.S. dollar fell to 154.22 Japanese yen from 154.31 yen. The euro cost $1.0404, up from $1.0386.
___
AP Business Writer Stan Choe contributed.
Discover more from World Byte News
Subscribe to get the latest posts sent to your email.
