Asian markets struggled on Friday to keep up with another record-breaking performance on Wall Street as disappointing earnings from tech titans Apple and Amazon took investors’ breath away following a string of positive reports.
Most of the above-forecast earnings from some of the world’s largest companies helped fuel a rally in global equities this month, helping to ease concerns about soaring inflation and the end of the era of corporate largesse. central banks.
Investors are also keeping a close eye on Washington after Joe Biden unveiled a new social and environmental spending program worth $ 1.75 trillion – half the original cost – which he hopes will please. to the two factions of his Democratic Party after months of painful negotiations.
Regional traders received another strong lead from their counterparts in New York, where the Nasdaq set a record with the S&P 500 on continued optimism about the outlook for recovery as earnings results suggest companies have largely held up. rising inflation, spikes in Covid and supply chain. problems.
That – and a drop in new jobless claims to a new pandemic-era low – helped overcome data showing the U.S. economy grew at a slower-than-expected pace in the third quarter due to a slowdown in consumer spending caused by Covid infections.
But overall negative ratings from Apple and Amazon, both of which said sales had been affected by supply issues, killed the mood.
Tokyo, Sydney, Seoul, Taipei and Manila were all in the red in morning trading, although Singapore, Wellington and Jakarta made gains.
Hong Kong and Shanghai have seemed unresponsive to a report that China Evergrande made an overdue interest payment by Friday’s deadline, giving it a little more breathing space as it struggles to cope with a crisis in the market. debt that many fear will spill over into the wider economy.
The report comes after the company requested another note last Friday the day before it was due.
Attention now turns to the Federal Reserve’s policy meeting next week, where it could announce its plans to scale back the massive bond-buying program put in place at the start of the pandemic and which has been key to ‘an economic surge and stocks over the past year and a half.
A long-standing spike in inflation has led policymakers to join with other central banks in reducing financial support to prevent price hikes from spiraling out of control and dealing a blow to the world’s largest economy.
Officials must then decide when to raise interest rates – following others including South Korea, Singapore and New Zealand – with growing consensus now pointing to mid-2022.
The meeting comes after the European Central Bank said on Thursday it would stick to its own stimulus package for now, although it added that it would end in March.
– Key figures around 02:30 GMT –
Tokyo – Nikkei 225: DROP 0.1% to 28,792.53 (pause)
Hong Kong – Hang Seng Index: DOWN 0.6% to 25,416.11
Shanghai – Composite: DOWN 0.2% to 5,312.80
Dollar / yen: DROP to 113.61 vs. 113.57 yen in 2015 GMT
Pound / dollar: up $ 1.3796 from $ 1.3792
Euro / dollar: DOWN to $ 1.1675 from $ 1.1682
Euro / pound: DROP to 84.62 pence against 84.69 pence
West Texas Intermediate: FLAT at $ 82.83 per barrel
North Sea crude brent: up 0.4% to $ 84.65 per barrel
New York – Dow: UP 0.7% at 35,730.48 (close)
London – FTSE 100: DOWN 0.1% to 7,249.47 (close)
dan / jah