By Associated Press
Asian shares were mixed Tuesday after a late drop left major Wall Street indexes mostly lower.
Hong Kong’s Hang Seng /zigman2/quotes/210598030/delayed HK:HSI -1.99% fell 1% while the Shanghai Composite index added 0.4%. The Kospi /zigman2/quotes/210598069/delayed KR:180721 -3.50% in Seoul lost 0.6%, while in Sydney, the S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO -1.77% climbed 0.7%. Benchmark indexes in Singapore /zigman2/quotes/210597985/delayed SG:STI -0.35% , Taiwan /zigman2/quotes/210597977/delayed TW:Y9999 -0.15% and Indonesia /zigman2/quotes/210597981/delayed ID:JAKIDX +0.16% retreated. Tokyo markets were closed Tuesday for a holiday.
Market players appeared to be relieved to learn that President Joe Biden will nominate Jerome Powell for a second four-year term at the helm of the Federal Reserve, a vote of confidence in Powell’s handling of central bank policies during the brutal disruptions caused by the coronavirus pandemic.
Investors are closely watching the Fed to see whether pressure from rising inflation prompts it to speed up its plans for trimming bond purchases and raising its benchmark interest rate.
“Powell getting the nod is a sign that Biden is staying the course on monetary policy and the Fed is steadily moving toward normalizing policy,” said Brad McMillan, chief investment officer for Commonwealth Financial Network. “On the whole, the Fed is going to continue to be a force for monetary stability.”
Still, a late-afternoon burst of selling derailed the market from another all-time high on Monday.
The S&P 500 /zigman2/quotes/210599714/realtime SPX -0.64% fell 0.3% to 4,682.94. The Dow /zigman2/quotes/210598065/realtime DJIA -0.21% gained less than 0.1% to 35,619.25. The tech-heavy Nasdaq /zigman2/quotes/210598365/realtime COMP -1.32% gave up 1.3% to 15,854.76.
Bond yields moved solidly higher on heavy selling. The yield on the 10-year Treasury rose to 1.63% from 1.54% late Friday.
On Tuesday, U.S. benchmark crude oil lost 50 cents to $76.25 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude , the standard for international pricing, gave up 35 cents to $79.35 per barrel.
The U.S. dollar /zigman2/quotes/210561789/realtime/sampled USDJPY +0.5180% rose to 115.08 Japanese yen from 114.88 yen late Monday.
Markets in the U.S. will be closed on Thursday for the Thanksgiving holiday. They will also close early on Friday.