• S&P 500 and Nasdaq set new records after jobless claims fall
• Nintendo plunges more than 7% over worse-than-expected quarterly profits
Asia’s markets struggled to find any momentum on Friday despite Wall Street hitting new highs overnight, with traders distracted by the release of upcoming US economic data.
The S&P 500 and Nasdaq set new records on Thursday after another fall in applications for unemployment benefits, while trade balance figures hinted at an end to supply chain snarls that have driven up prices.
But gains on other bourses were limited, with traders awaiting US payroll data on Friday for an indication as to when Washington will begin to taper its coronavirus support measures and put the brakes on inflation.
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Broader sentiment has also been dampened by the global spread of the Delta coronavirus variant, Tapas Strickland of National Australia Bank said.
“Delta concerns remain, though markets continue to view it more in the window of delay rather than [a] derail given the high efficacy of vaccines,” he added.
“Nevertheless, a number of US companies have pushed back the date when they expect most workers to return to offices given the spread of delta.”
Hong Kong finished down over weaknesses in banking shares, though Tencent was up nearly 4% to pare the week’s losses after hints of a new regulatory crackdown on the online gaming industry by Beijing.
SYDNEY LOCKDOWNS
The Hang Seng Index finished down 0.1%, or 25.29 points, to 26,179.40. The Shanghai Composite Index closed 0.24% lower, shedding 8.32 points to 3,458.23, while the Shenzhen Composite Index on China’s second exchange was down 3.98 points or 0.16% to 2,443.06.
Another entertainment company, Nintendo, was among the biggest losers on the Tokyo exchange, diving more than 7% after reporting a worse-than-expected quarterly profit.
The benchmark Nikkei 225 index grew 0.33% or 91.92 points to end at 27,820.04, while the broader Topix index inched up 0.02% or 0.36 points to 1,929.34.
Sydney closed up 0.4% despite city authorities reporting a record number of new Covid infections and warning residents to brace for worse to come, with around two-thirds of Australia’s population now in virus lockdown.
OIL DEMAND
Investors there were buoyed by optimistic Reserve Bank comments forecasting an economic recovery when virus restrictions were eased.
Oil benchmarks, meanwhile, showed signs of modest upward movement with a report showing recent increases in US crude exports and other signs of recovery in coronavirus-hit markets.
“India posted twice as strong demand for US crude, implying once a country gets beyond the Delta variant, crude demand will surge quickly,” Edward Moya of OANDA said.
India’s economic bounceback from its devastating Covid wave earlier this year has seen rising inflation but its central bank kept rates at record lows for a seventh straight month on Friday.
MARKETS
Tokyo – Nikkei 225: UP 0.3% at 27,820.04 (close)
Hong Kong – Hang Seng Index: DOWN 0.1% at 26,179.40 (close)
Shanghai – Composite: DOWN 0.2% at 3458.23 (close)
New York – Dow: UP 0.8% at 35,064.25 (close)
- AFP and Sean O’Meara
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