By Associated Press
BEIJING (AP) — Asian stock markets were mostly higher Tuesday as investors looked ahead to a Federal Reserve report for an update on when U.S. stimulus might start winding down.
Shanghai, Tokyo and Seoul advanced while Hong Kong retreated.
On Monday, Wall Street’s benchmark S&P 500 index rose to a new record, shrugging off worries about the spread of the coronavirus’s more contagious Delta variant.
Investors awaited the Fed report Wednesday for signs of the central bank’s level of concern about inflation and when it might start rolling back easy credit and other economic stimulus. Minutes of the Fed meeting in June showed board members discussed how and when they might reduce monthly bond purchases that inject money into the financial system.
“We expect Jay Powell to reiterate that the tapering discussion is underway, but that it’s too soon to reveal a specific date,” Danielle DiMartino Booth of Quill Intelligence said in a report.
The Shanghai Composite Index /zigman2/quotes/210598127/delayed CN:SHCOMP +0.19% gained 0.2% to 3,475.66 and the Nikkei 225 /zigman2/quotes/210597971/delayed JP:NIK +0.58% in Tokyo advanced 0.4% to 27,932.08. The Hang Seng /zigman2/quotes/210598030/delayed HK:HSI +1.03% in Hong Kong sank 1% to 25,922.83.
The Kospi /zigman2/quotes/210598069/delayed KR:180721 +0.33% in Seoul rose 0.7% to 3,246.32 after economic growth moderated to 0.7% over the previous quarter in the three months ending in June, down from previous quarter’s 1.7%.
Sydney’s S&P-ASX 200 /zigman2/quotes/210598100/delayed AU:XJO -0.76% advanced 0.6% to 7,437.70. New Zealand declined while Singapore and Jakarta advanced.
On Wall Street, the S&P 500 rose 0.2% to 4,422.30. The Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.48% gained or 0.2% to 35,144.31. The Nasdaq Composite /zigman2/quotes/210598365/realtime COMP -0.91% added less than 0.1% to 14,840.71.
Cruise lines, hotels and retailers were among the winners. Carnival /zigman2/quotes/202325446/composite CCL +1.99% rose 5.5%, Caesars Entertainment /zigman2/quotes/205281174/composite CZR -2.30% added 3.3% and Gap /zigman2/quotes/206554267/composite GPS +0.62% rose 3%. Among stocks that lost ground: Drug maker Moderna /zigman2/quotes/205619834/composite MRNA -2.41% slid 3.7% and chipmaker Nvidia /zigman2/quotes/200467500/composite NVDA -1.54% fell 1.4%.
U.S.-traded shares in Chinese companies sank after Beijing announced additional enforcement measures on technology, real estate and for-profit education ventures. Chinese authorities say they need to protect public safety and financial stability, restrain surging housing costs and promote social welfare. But their abrupt orders shook investor confidence.
China’s industry ministry announced a 6-month campaign to clean up what it says are serious problems with internet apps violating consumer rights, cyber security and “disturbing market order.” Internet giant Tencent /zigman2/quotes/204605823/delayed HK:700 +2.39% slid 10% following a weekend order by regulators to end exclusive contracts with music copyright holders that they said harmed competition.
“A painfully sobering message may be: ‘You can take the company listing out of China, but you can’t take China (risks) out of the company,'” said Mizuho Bank in a report. “If unresolved, this may ultimately impair the ability of Chinese firms to raise global capital, a serious impediment to Beijing’s aspirations to grow global champions.”
U.S. traders are looking for earnings reports from more large companies this week. Google’s parent, Alphabet /zigman2/quotes/202490156/composite GOOGL -1.96% , reports Tuesday. So do Apple /zigman2/quotes/202934861/composite AAPL -1.83% and Microsoft /zigman2/quotes/207732364/composite MSFT -1.75% . Pfizer /zigman2/quotes/202877789/composite PFE -1.30% and Boeing /zigman2/quotes/208579720/composite BA 0.00% report Wednesday.
Electric vehicle company Lucid Motors, now dubbed Lucid Group /zigman2/quotes/221104327/composite LCID +8.46% , rose 10.6% in its public debut after being bought by blank-check company Churchill Capital Corp. /zigman2/quotes/224580754/composite CVII.UT 0.00%
In energy markets, benchmark U.S. crude /zigman2/quotes/209723049/delayed CL00 -0.01% gained 23 cents to $72.14 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 16 cents to $71.91 on Monday. Brent crude , used to price international oils, advanced 31 cents to $74.01 per barrel in London. It rose 40 cents the previous session to $74.50.
The dollar declined to 110.18 yen /zigman2/quotes/210561789/realtime/sampled USDJPY +0.2287% from Monday’s 110.39 yen. The euro /zigman2/quotes/210561242/realtime/sampled EURUSD -0.3315% edged up to $1.1804 from $1.1800.