Asian shares mixed after US inflation report

·2 min read

ASIAN shares were mixed Thursday, Nov. 11, 2021 after a worrisome report on US inflation that slammed into the bond market and knocked stocks lower on Wall Street.

In Japan, where investors are awaiting an economic stimulus package from newly elected Prime Minister Fumio Kishida, the benchmark Nikkei 225 climbed 0.5 percent to 29,255.02. Australia’s S&P/ASX 200 fell 0.6 percent to 7,381.90. South Korea’s Kospi shed 0.4 percent to 2,917.44.

Hong Kong’s Hang Seng rose 0.5 percent to 25,116.36, while the Shanghai Composite gained 1.0 percent to 3,527.62.

A recent regulatory crackdown in China has weighed on technology issues, but some stocks are recovering as investors decide the selloff may have been overdone.

“Sentiments may be expected to remain capped by the negative lead in Wall Street overnight, with market participants taking some risks off the market while awaiting reassurances on monetary policy stance,” said Yeap Jun Rong, market strategist at IG in Singapore.

In the US, prices for beef, electricity and other items that consumers paid in October surged from year-ago levels at the fastest overall pace since 1990, raising expectations that the Federal Reserve will have to hike short-term interest rates more quickly off their record low. That sent Treasury yields to their biggest gains in months.

The two-year Treasury yield tends to move with expectations for Fed action, and it leaped to 0.51 percent from 0.41 percent late Tuesday, a significant move.

Longer-term Treasury yields also rose, with the 10-year yield up to 1.55 percent early Thursday from 1.43 percent late Wednesday.

Rising yields tend to be a drag on stocks, particularly those seen as the most expensive or whose expectations for big profit growth are furthest in the future. Drops for several high-growth tech stocks weighed on Wall Street, as did a slide in energy stocks following a decline in the price of crude oil. (AP)

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