Asian Shares Mostly Lower After Mixed Session on Wall Street

Asian shares were mostly lower on Wednesday following a mixed session on Wall Street after a three-day holiday weekend. Shares in Tokyo, Seoul, Sydney, Hong Kong, and Shanghai all fell as oil prices rose. Despite the overall downward trend in Asian markets, the International Monetary Fund raised its forecast for China’s economic outlook, predicting a 5% annual growth rate for the No. 2 economy this year.

In Japan, the benchmark Nikkei 225 dropped 0.8%, while Australia’s S&P/ASX 200 fell by 1.3% and South Korea’s Kospi lost 1.6%. Hong Kong’s Hang Seng slipped 2.1%, and the Shanghai Composite edged 0.2% lower.

Meanwhile, on Wall Street, most U.S. stocks dipped slightly on Tuesday after bond yields ticked higher. The S&P 500 managed to edge higher by less than 0.1%, with nearly three-quarters of stocks in the index falling. The Dow Jones Industrial Average fell by 0.6%, while the Nasdaq composite gained 0.6%, hitting a new all-time high.

Tech stocks played a significant role in the market movements, with Nvidia leading the way by jumping 7%. U.S. Cellular also saw a notable increase in its stock price after T-Mobile announced plans to acquire the company for $4.4 billion. GameStop also surged by 25.2% after raising $933.4 million in cash through a stock sale.

However, the majority of stocks on Wall Street were impacted by a modest rise in Treasury yields, with the 10-year Treasury climbing to 4.54%. The Federal Reserve has been closely monitoring these yields as part of its efforts to control inflation and stabilize the economy.

Looking ahead, this week’s reports, including the government’s monthly report on household spending and incomes, will be closely watched for insights that could influence the Fed’s decision-making. Overall, economic indicators and market trends both domestically and internationally continue to shape investor sentiment and market movements.