BANGKOK (AP) – Shares tumbled Friday in most Asian markets after China reported stronger-than-expected price gains that could prompt authorities to take action to cut inflation.
Japan’s Nikkei 225 index rebounded after tumbling the previous day. Shares fell in Hong Kong, Shanghai, Sydney and Seoul.
On Thursday, stocks closed moderately higher on Wall Street, boosted by profits from big tech companies benefiting from lower bond yields. But the increase in the number of jobless claims has reduced their enthusiasm for purchasing.
China reported a surge in consumer prices in March as oil prices rose, while producer prices rose sharply in more than four years.
The CPI rose 0.4 percent in March, compared to minus 0.2 percent in February, as oil prices rose nearly 12 percent from a year earlier. Prices paid by manufacturers increased 4.4% from a year earlier.
Inflation reflects rising demand as China’s economy is leading the global recovery from the epidemic. Concerns that stronger growth could spur inflation that regulators in many major economies will slide into a cold, partly due to rate hikes plaguing markets in recent months.
In addition, this new round of U.S. sanctions against seven Chinese supercomputer makers have raised concerns about a trade conflict between the two biggest economies, said Jeffrey Halley of Oanda.
“Asian markets have become more cautious today. Geopolitics is never far from the surface, although it often disappears from the noise of the Earth’s resurgence, ”Halley said in the report.
Shanghai Composite CN Index: SHCOMP
Gone 1% and Hang Seng in Hong Kong HK: HSI.
Down 1.3% Australia’s S & P / ASX 200 AU: XJO
Surrender 0.2% and Kospi KR: 180721.
In Seoul, down 0.3%.
Japan’s Nikkei 225 JP: NIK
Stock in Sony Corp.Sony
It was up 2.7% after the company signed a special movie distribution deal with Netflix NFLX..
On Thursday, the S&P 500 SPX index.
It was up 0.4% to 4,097.17, another record high, followed Monday and Wednesday DJIA Dow Jones Industrial Average.
Up 0.2% to 33,503.57 Nasdaq Composite COMP
Increased 1% to 13,829.31
Smaller corporate stocks, which have outpaced wider markets this year, have also performed well.RUT Russell 2000 Index
The index is up 13.6% this year, while the S&P 500, which tracks large companies, is up 9.1%.
Stocks benefited this week as bond yields continued to climb, dropping from their highs at the start of the month.
The yield on a 10-year US Treasury Bill BX: TMUBMUSD10Y.,
That influence interest rates on mortgages and other loans fell to 1.63 percent from 1.65 percent at the end of Wednesday. As of Monday, it was 1.75 percent.
Falling yields have plunged tech stocks over the past few months as rising yields have made them look expensive. The sector also sees some uncertain trading as investors shift their money to companies that have benefited from the economic recovery.
1.9% increase Microsoft MSFT
Get 1.3% and Amazon AMZN.
Investors showed cautious optimism about the economic recovery, especially in the United States where vaccination spreads increased, and President Joe Biden has implemented a deadline for states to provide. Dosage for all adults through April 19.
But it is clear that there is a long road to recovery. The number of Americans applying for unemployment benefits last week rose again last week as businesses remained shut or partially shut due to the outbreak.
In a statement to the International Monetary Fund on Thursday, Federal Reserve Chairman Jerome Powell said there are factors that keep the country “in the works” to enable a completely new economy. Coming soon. “
In other trading, CL, US crude oil.
It rose 11 cents to $ 59.71 a barrel in electronic trading on the New York Mercantile Exchange.It lost 17 cents to $ 59.60 on Thursday. Brent Crude BRN00,
International benchmarks were down 2 cents to $ 63.18.
The US Dollar rose to 109.32 Japanese Yen USDJPY.
From 109.25 yen euro EURUSD
It was down to $ 1.1904 from $ 1.1917.