Asian stocks mostly fell after tech-led Wall Steet retirement – WSOC TV


BANGKOK – (AP) – Stocks were mostly down in Asia on Tuesday after Wall Street pulled back from recent record highs amid weakness in tech stocks.

Hong Kong’s benchmark slipped amid lingering concerns about real estate developers. Tokyo, Seoul and Shanghai also fell.

Shares of Shanghai-based Shimao Group Holdings fell 12.6% in Hong Kong on Tuesday amid concerns over its financial condition. Shimao is one of many real estate companies facing tighter controls on debt levels, which has deprived some heavily indebted companies of cash to meet their debts.

China Evergrande Group shares lost 6.4%. Evergrande is one of the largest Chinese developers, with over $ 300 billion in debt.

“Recent scrutiny has taken hold of Shimao Group Holdings, China’s 13th largest developer in terms of contract sales, over its liquidity position and debt service capacity. This could continue to put the real estate industry under scrutiny today, ”said Yeap Jun Rong of IG.

Another concern is the first reported case in China of the omicron variant of the coronavirus, Yeap added.

Chinese leaders have pledged tax cuts and support for entrepreneurs to support plummeting economic growth as the country grapples with bankruptcies and defaults among real estate developers caused by the campaign to curb economic growth. increase in debt.

The Hong Kong Hang Seng slipped 1.3% to 23,642.70 and the Nikkei 225 in Tokyo fell 0.9% to 28,391.91. In Seoul, the Kospi fell 0.7% to 2,982.00.

The Shanghai Composite Index lost 0.3% to 3,669.84, while the S & P / ASX 200 was down less than 0.1% to 7,376.70.

On Monday, the S&P 500 fell 0.9% to 4,669.97, giving up some of its gains after the benchmark hit an all-time high on Friday, ending Wall Street’s best week since February. The Dow Jones Industrial Average also fell 0.9% to 35,650.95. The high tech Nasdaq composite slipped 1.4% to 15,413.28.

The Russell 2000 was also down 1.4% to 2,180.50 as smaller company stocks outperformed the broader market, a sign that investors are concerned about economic growth.

Harley-Davidson rose 4.7% after announcing it would go public with its electric motorcycle division through a blank check company, valuing the company that has been part of the motorcycle maker for 10 years to $ 1.77 billion.

The market pullback, with the S&P 500 just hitting its 67th all-time high this year, comes as investors look to the Federal Reserve’s latest economic policy and interest rate update on Wednesday.

Wall Street will receive an inflation update on Tuesday when the Department of Labor releases its Producer Price Index for November, which shows the impact of inflation on costs for businesses. This report will be particularly important with the Fed meeting on Tuesday and Wednesday.

Markets expect the central bank to announce plans to speed up its schedule of curtailing bond purchases aimed at keeping long-term interest rates low.

Stocks mostly rose, despite a period of volatility in late November as concerns over the omicron variant of the coronavirus rocked markets. Some of those concerns eased over the past week amid encouraging signs that the variant may be less dangerous than the Delta.

Several large pharmaceutical companies, including COVID-19 vaccine makers Moderna and Pfizer, were among the biggest winners of the S&P 500 on Monday. Moderna jumped 5.8% for the biggest gain in the index. Pfizer rose 4.6% following the announcement of the takeover of Arena Pharmaceuticals.

The 10-year Treasury yield remained stable at 1.42% after falling to 1.41% on Monday from 1.49% on Friday night. This has taken a toll on banks, which rely on higher bond yields to charge more lucrative interest on loans. Capital One fell 2.9%.

In other exchanges, benchmark US crude fell 44 cents to $ 70.85 a barrel in electronic trading on the New York Mercantile Exchange. It lost 38 cents to $ 71.29 on Monday.

Brent crude, the basis of international crude pricing, fell 38 cents to $ 74.01 a barrel.

The US dollar climbed to 113.59 Japanese yen from 113.57 on Monday night. The euro slipped to $ 1.1277 from $ 1.1285.

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AP Business Writers Damian J. Troise and Alex Veiga contributed.

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