Asian stocks mixed after Wall St slides and China travel restrictions
Global stock markets rose on Monday after Wall Street fell, and China tightened travel controls in some areas in response to coronavirus infections.
Shanghai and Hong Kong advanced while London and Frankfurt opened higher. Tokyo refused.
On Wall Street, futures on the S&P 500 Index and the Dow Jones Industrial Average rose 0.1%.
The Chinese capital, Beijing, has banned visitors from infected areas in the past 14 days and northwestern Gansu province has closed tourist sites after coronavirus cases were discovered. China has reported a few dozen cases, but Beijing’s response to travel restrictions has raised concerns that could weigh on already weakening economic activity.
“It’s a potential dark cloud if it results in widespread social restrictions,” Oanda’s Jeffrey Halley said in a report.
In early trading, the FTSE in London rose 0.5% to 7,240.10 and the DAX in Frankfurt rose 0.2% to 15,568.72. The CAC 40 in Paris lost less than 0.1% to 6,731.13.
In Asia, the Shanghai Composite Index rose 0.8% to 3,609.86 while the Nikkei 225 in Tokyo lost 0.7% to 28,600.41. The Hang Seng in Hong Kong added less than 0.1% to 26,132.03.
Seoul’s Kospi rose 0.5% to 3,020.54 and Sydney’s S & P-ASX 200 gained 0.3% to 7,441.00.
The Indian Sensex gained 0.3% to 61,019.36. The New Zealand and Southeast Asian markets declined.
Wall Street’s S&P 500 fell 0.1% on Friday, weighed down by losses from tech companies after a seven-day streak of gains. The Dow Jones gained 0.2% to hit a new high while the Nasdaq composite slipped 0.8%.
Some 65% of S&P 500 stocks closed higher, led mostly by financials and healthcare companies, but losses in communications and tech companies kept the S&P 500 down. Chipmaker Intel fell 11.7% after reporting disappointing earnings.
Snapchat’s parent company Snap plunged 26.6% after reporting low revenues and revealing its ad sales hit by a privacy crackdown on Apple iPhones earlier this year . Facebook fell 5.1% and Twitter fell 4.8%. Google’s parent company Alphabet fell 3%.
All three major indices posted their third weekly gain after investors were encouraged by mostly strong corporate results.
Also on Friday, Federal Reserve Chairman Jerome Powell said problems in the industrial supply chain have worsened and will likely keep inflation high next year.
Investors are looking for clues as to how companies are dealing with supply chain issues and rising costs for materials, transportation, and other goods and services. Many companies have warned that higher costs will hurt operations.
Powell also said the Fed was not prepared to hike its benchmark interest rate near zero. But he suggested the economy might be ready for a rate hike next year.
In energy markets, benchmark US crude rose 72 cents to $ 84.48 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose from $ 1.26 to $ 83.76 on Friday. Brent crude, used as the price base for international oils, fell 26 cents to $ 85.27 a barrel in London. It rose 92 cents from the previous session to $ 85.53.
The dollar gained 113.64 yen from 113.44 yen on Friday. The euro went from $ 1.1637 to $ 1.1648.