Asian markets lower amid China, Afghanistan unease – KIRO 7 News Seattle

BEIJING – (AP) – Asian stock markets fell on Tuesday amid concerns over the turmoil in Afghanistan and unease over China’s economic outlook after weak July activity.

Investors awaited a speech by Federal Reserve Chairman Jerome Powell for an update on the health of the world’s largest economy. Dealers also waited for US sales and factory dates.

Shanghai, Hong Kong and South Korea fell, while Tokyo rose.

Wall Street’s S&P 500 benchmark hit a new high despite rising US coronavirus infections.

Traders got “a certain positive vibe” from Wall Street but also said “very attentive to the situation in Afghanistan,” ActivTrades’ Anderson Alves said in a report.

The economy of landlocked Afghanistan is tiny, but other governments have been surprised by the speed at which their government has collapsed. Thousands of people tried to leave the country after the Taliban captured the capital, Kabul.

Markets also digested the news that Chinese factory production, consumer spending and investment grew more slowly than expected in July. The government blamed flooding in central China and controls over travel and business to combat outbreaks of the Delta variant of the coronavirus.

This caused oil prices to decline on Monday as traders revised forecasts for Chinese demand.

Beijing’s policy of not pursuing virus cases “indicates the risk of aggressive measures” that “could continue to limit growth,” IG’s Yeap Jun Rong said in a report.

The Shanghai Composite Index lost less than 0.1% to 3,514.29 while the Nikkei 225 in Tokyo rose 0.2% to 27,569.84. Hong Kong’s Hang Seng lost less than 0.1% to 26,162.22.

The Seoul Kospi fell 0.8% to 3,144.58 while the Sydney S&P ASX 200 fell 0.9% to 7,515.90.

New Zealand and Bangkok rose while Singapore and Indonesia fell.

On Wall Street, the S&P 500 rose 0.3% to 4,479.71. The Dow Jones Industrial Average rose 0.3% to 35,625.40. The Nasdaq lost 29.14 points to 14,793.76.

Technology and health stocks made up a large part of the S&P 500’s rise.

Sectors traditionally considered to be less risky, including utilities and companies that manufacture food and personal goods, also contributed to the appreciation of the market. Those gains outweighed falls in banks, energy stocks, and a number of retailers and travel companies.

Analysts had expected US economic growth to slow from its breakneck pace at the beginning of the year, but the highly contagious Delta variant has commanded even more caution among investors.

In the energy markets, the US crude oil index rose 10 cents to $ 67.36. Brent crude, which is used to price international oils, rose 16 cents to $ 69.62.

The dollar gained 109.28 yen from 109.24 on Monday. The euro fell from $ 1.1776 to $ 1.1772.

Copyright 2021 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed in any way without permission.