The Asian market fell on Friday following the worst monthly loss on Wall Street since the pandemic began.
Tokyo skid 2.3% and Australia’s benchmark fell 2.2%. The Shanghai and Hong Kong markets have been closed due to holidays.
The S & P 500 fell 4.8% in September, the first monthly decline since January and the largest since March 2020.
After a steady rise throughout the year, the epidemic of the more contagious delta variant of COVID-19 has destabilized the stock market, soared long-term bond yields, and the Federal Reserve has unleashed its support in recent weeks. There are words that there is a possibility to get started. For the economy.
Japan lifted the pandemic emergency on Friday after seeing a decline in coronavirus cases as vaccination accelerated. A quarterly survey by the Bank of Japan found that Japanese manufacturers’ corporate sentiment has risen to its highest level in nearly three years.
According to the results of the Tankan survey released on Friday, the sentiment of major manufacturers rose from 14 to 18. This is the highest level since late 2018. Non-manufacturer readings increased slightly from 1 to 2.
However, that and various other studies have found that manufacturers are suffering from a shortage of computer chips and other components amid supply chain and shipping disruptions that can hinder recovery from a pandemic.
The Nikkei 225 in Tokyo fell 681.59 points to 28,771.07, and the S & P / ASX 200 fell 2.2% to 7,170.50. The KOSPI index in Seoul was down 1.6% to 3,018.58. Stock prices also fell in Taiwan and Southeast Asia.
The S & P 500 fell 1.2% on Thursday, down 4.8% in the first monthly fall since January, the largest since March 2020, when the outbreak of the virus that disrupted the global economy shook the market.
The benchmark index is up 14.7% annually.
The S & P 500 fell 51.92 points to 4,307.54. The Dow Jones Industrial Average fell 1.6% to 33,843.92 and the Nasdaq fell 0.4% to 14,448.58. SME stocks also fell. The Russell 2000 Index fell 0.9% to 2,204.37.
Bond yields are kept low. Yields on 10-year government bonds, the benchmark for many types of loans, fell from 1.50% at the end of Wednesday to 1.48%. About a week ago, it was as low as 1.32%.
All sectors of the S & P 500 ended Thursday in the red, with tech stocks, banks, and a combination of consumer goods and service providers making up the majority of the recession. Over 90% of index stocks have fallen.
Over the last few weeks, economic data have shown that highly contagious delta variants are squeezing the recovery of consumer spending and the employment market.
The Ministry of Labor reported: Unemployment applications increased for 3 consecutive weeks It was higher than expected by economists.Ministry of Commerce Upgraded economic growth quote It was 6.7% in the second quarter, slightly better than economists expected, but expects growth to drop to 5.5% in the third quarter.
Inflation is also a concern. Various companies have warned about the financial implications of rising prices. Sherwin-Williams and Nike are one of many companies that warn investors about supply chain issues, rising raw material costs, and labor costs issues.
Investors are trying to determine if these issues are temporary and part of an economic recovery or may last longer than expected. The next Corporate Revenue Report may reveal how companies are addressing these issues.
With a bill to fund the U.S. government until December 3rd on Thursday Avoid partial federal closures clear parliament.. However, the controversy between Democrats and Republicans over extending the country’s debt restrictions remains unresolved.
Homebuilders have fallen sharply after reports that average long-term mortgage rates on mortgages have exceeded 3% for the first time since June this week. Mortgage rates tend to track the direction of 10-year government bond yields. According to mortgage buyer Freddie Mac, the average 30-year mortgage rate has risen to 3.01%. The average rate last week and a year ago was 2.88%.
Higher mortgage rates can limit the purchasing power of homebuyers and lower the prices of potential homeowners. LGI Homes decreased by 5.1% and PulteGroup decreased by 4.2%.
In another trade on Friday, US benchmark crude added 8 cents to $ 75.11 a barrel in electronic trading on the New York Mercantile Exchange. It rose 18 cents to $ 75.03 a barrel on Thursday.
Brent crude rose 12 cents to $ 78.43 a barrel.
The dollar fell from 111.28 yen to 111.22 yen. The euro remained unchanged at $ 1.1580.
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Asian stocks fell after S & P 500 recorded its first monthly fall in 21 | Jobs
Source link Asian stocks fell after S & P 500 recorded its first monthly fall in 21 | Jobs