Asian stocks trade mixed as optimism fades in US rally

TOKYO – (AP) – Asian stocks were mixed on Monday, as the initial euphoria over the gains that closed last week on Wall Street quickly faded.

Japan’s benchmark Nikkei 225 was up 0.3% in morning trading to 29,022.12. The Australian S & P / ASX 200 lost its earlier gains, falling 0.1% to 7,290.60. South Korea’s Kospi added 0.1% to 3,244.12. The Hong Kong Hang Seng fell 0.9% to 28,648.63, while the Shanghai Composite rose less than 0.1% to 3,592.70.

Concerns about the coronavirus pandemic remain strong in the region, unlike in the United States and parts of Europe, where life is increasingly returning to something that looks like normal, but the vaccine rollout s ‘is gradually accelerating in Asia.

Much of the regional economy depends on exports to the West. Data released this week, such as trade data for China and industrial production for India, is expected to reflect the rebound in the pandemic.

“Consensus expectations for activity data released this week in Asia appear strong,” Venkateswaran Lavanya of the Asia and Oceania Treasury Department of Mizuho Bank in Singapore said in a comment.

“The most relevant question now is whether we can effectively assess the extent of the recovery, or the lack of it, in these economies.”

Wall Street closed last week with a second consecutive weekly gain for the S&P 500, which rose 0.9% to 4,229.89. It follows a US Department of Labor report showing that US employers created 559,000 jobs in May.

Tech stocks were the biggest gainers and did the most to drive the market up as a whole. The Dow Jones Industrial Average gained 0.5% to 34,756.39. The rally in tech stocks helped push the Nasdaq to a solid gain. The technology index climbed 1.5% to 13,814.49.

Small business stocks also posted gains. The Russell 2000 added 0.3% to 2,286.41.

The recovery in employment last month is another sign that the economy continues to recover, even though employment remains below pre-pandemic levels.

Investors fear that rising inflation will become a long-term problem, rather than the temporary effect of the economic recovery. They also fear that the Fed will consider withdrawing support for the economy if inflation gets too high.

In energy trading, benchmark US crude fell 18 cents to $ 69.44 a barrel in electronic trading on the New York Mercantile Exchange. It gained 81 cents to $ 69.62 a barrel on Friday. Brent crude, the international standard, fell 29 cents to $ 71.60 a barrel.

In currency trading, the US dollar rose from 109.49 yen to 109.58 Japanese yen. The euro cost $ 1.2167, compared to $ 1.2165.

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