Tokyo, Feb 10 (AP) Asian shares were mostly higher on Tuesday as Japan’s benchmark topped new highs after a historic election win for the nation’s first female prime minister.
Japan’s benchmark Nikkei 225 jumped 2.6 per cent to 57,821.58. The index recorded a 3.9 per cent jump to a record high on Monday, a day after the landslide victory for Sanae Takaichi’s political party in a parliamentary election. Hopes are high that Takaichi will push through reforms expected to boost the economy and stock market.
Australia’s S&P/ASX 200 rose 0.3 per cent to 8,893.60. South Korea’s Kospi gained 0.6 per cent to 5,327.80. Hong Kong’s Hang Seng surged 1.0 per cent to 27,300.00, while the Shanghai Composite added 0.2 per cent to 4,130.20.
On Wall Street, the US stock market was coming off its best day since May to close last week, but several concerns still hang over the market. That includes criticism that stocks have simply become too expensive following their run to records.
The S&P 500 pulled closer to its all-time high set two weeks ago, gaining 0.5 per cent to 6,964.82. The Dow Jones Industrial Average edged up less than 0.1 per cent to 50,135.87, and the Nasdaq composite gained 0.9 per cent to 23,238.67.
A key persistent worry is over whether the huge spending by Big Tech and other companies on artificial-intelligence technology will produce enough profit to make the investments worth it.
Some of the winners from that rush into AI drove the market higher on Monday. Chip companies rose, for example, with Nvidia up 2.4 per cent and Broadcom up 3.3 per cent.
In the bond market, Treasury yields held relatively steady ahead of potentially market-moving reports coming later in the week. The US government will offer the latest monthly update on the health of the job market on Wednesday. Friday will bring the latest monthly reading of inflation at the consumer level.
Either report could sway expectations for what the Federal Reserve will do with interest rates. The Fed has put its cuts to interest rates on hold, but a weakening of the job market could push it to resume more quickly. Too-hot inflation, on the other hand, could keep it on hold for longer.
One of the reasons the US stock market remains close to records is the expectation that the Fed will continue cutting interest rates later this year. Lower rates can give the economy a boost, though they can also worsen inflation.
The yield on the 10-year Treasury eased to 4.20 per cent from 4.22 per cent late Friday.
Gold rose 2 per cent to settle at USD 5,079.40 per ounce. It’s been swinging sharply after roughly doubling in price over 12 months, and it has bounced between USD 4,500 and nearly USD 5,600. Silver, whose price has been even wilder, jumped 6.9 per cent on Monday.
Bitcoin was hanging just below USD 71,000 after drifting above the level during the weekend. It had dropped close to USD 60,000 last week, more than halfway below its record set in October.
In other dealings early Tuesday, benchmark US crude slipped 4 cents to USD 64.32 a barrel. Brent crude, the international standard, dipped 2 cents to USD 69.02 a barrel.
The US dollar edged down to 155.75 Japanese yen from 155.83 yen. The euro cost USD 1.1909, down from USD 1.1916. (AP) SKS SKS
Category: Breaking News
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