By Associated Press
Shares were mixed in Asia on Wednesday with Chinese benchmarks pressing higher after a rally in technology companies helped reverse most of an early slide on Wall Street.
Tokyo’s Nikkei 225 /zigman2/quotes/210597971/delayed JP:NIK -1.46% added 0.4% while Sydney’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO -0.90% was flat. In Seoul, the Kospi /zigman2/quotes/210598069/delayed KR:180721 -1.04% was slipped 0.1%. Stocks fell in Singapore /zigman2/quotes/210597985/delayed SG:STI -0.28% but advanced in Taiwan /zigman2/quotes/210597977/delayed TW:Y9999 -2.53% and Indonesia /zigman2/quotes/210597981/delayed ID:JAKIDX +0.28% .
Investors are awaiting the release later Wednesday of the Labor Department’s report on consumer prices for April. On Thursday, it will release its report on producer prices, or wholesale prices that impact businesses, for April.
The pace of price increases will influence the Federal Reserve’s strategy on interest rates and other monetary policy. The concern is that aggressive action to tame inflation might cause the economy to tip into recession.
“Some wait-and-see is largely in place, as participants refrain from taking on excessive risks while awaiting how markets will react to the expected decline in US CPI –- the first in seven months,” Jun Rong Yeap of IG said in a commentary.
Stocks ended mixed on Wall Street Tuesday after a rally in technology companies helped reverse most of an early slide.
The S&P 500 /zigman2/quotes/210599714/realtime SPX -0.07% wound up 0.2% higher at 4,001.05 after giving up most of an early gain of 1.9%. The Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +0.27% fell 0.3% to 32,160.74. The Nasdaq composite /zigman2/quotes/210598365/realtime COMP -0.03% rose 1% to 11,737.67.
Bond yields were mixed. The yield on the 10-year Treasury fell to 2.99% from 3.08% late Monday.
Treasury yields have been rising and stocks have been extremely volatile recently as Wall Street adjusts to the central bank’s moves to raise interest rates from historic lows to fight persistently rising inflation, which is at its highest levels in four decades.
The central bank has raised its benchmark rate from close to zero, where it sat for much of the coronavirus pandemic. Last week, it indicated it will double the size of future increases.
Higher prices on raw materials, shipping and labor have been cutting into corporate financial results and forecasts. Many companies have been raising prices on everything from clothing to food, raising concerns that consumers will eventually cut spending, which would hurt economic growth.
Russia’s ongoing invasion of Ukraine has only increased worries about rising inflation. The conflict pushed already high oil and natural gas prices even higher, while putting more pressure on costs for key food commodities like wheat, Wheat prices are up more than 40% for the year.
U.S. crude oil prices fell 3.2% on Tuesday, but are up about 36% in 2022. The U.S. benchmark gained $2 to $101.76 per barrel on Wednesday in electronic trading on the New York Mercantile Exchange.
Brent crude , the international basis for pricing oil, jumped $2.14 to $104.60 per barrel.
In currency dealings, the dollar /zigman2/quotes/210561789/realtime/sampled USDJPY +0.0198% slipped to 130.37 Japanese yen from 130.43 yen.