Asian shares advance despite weaker factory data, outbreaks – KIRO 7 News Seattle

BANGKOK – (AP) – Shares were mostly higher in Asia on Wednesday, although new data shows factory activity slowed this month as virus outbreaks disrupted shipments in some Chinese ports.

Markets rose in Tokyo, Shanghai, Sydney and Seoul but fell in Hong Kong.

Japan, South Korea and China all released data that “was quite disappointing,” OANDA’s Jeffrey Halley said in a comment, adding that “it looks like demand from key export markets is slowing, compounded by chip shortages and logistical congestion “. , are dampening orders in many sectors. “

Japan’s industrial production fell 5.9% month-on-month in June, while South Korean production fell 0.7%.

An important measure of Chinese factory activity, the purchasing managers index, only just remained on the expansion course.

Pandemic precautions due to coronavirus outbreaks in some ports in southern China have disrupted shipments, analysts say.

Some signs of weakness can reassure investors concerned that central banks and governments may withdraw the generous support for markets that led them to record highs after a collapse at the start of the pandemic.

Tokyo’s Nikkei 225 index was just 8 points higher at 28,821.21. The Kospi in Seoul rose by 0.5% to 3,302.25 and the Shanghai Composite Index by 0.2% to 3,581.72. Sydney’s S & P / ASX 200 rose 0.7% to 7,351.50.

In Hong Kong, the Hang Seng index fell 0.2% to 28,948.75. Shares rose in India and Taiwan.

The biggest data release this week will be Friday’s June US jobs report. Economists estimate that American employers created 675,000 more jobs than lost them, with the unemployment rate falling to 5.7%.

Employment growth has been choppy lately, with gains disappointingly below economists’ expectations in recent months. This is important because the Fed will likely continue to support the economy with low interest rates as long as the job market looks like it needs help.

Until the update on Friday, the markets on Tuesday were listless.

The S&P 500 gained less than 0.1% to 4,291.80, increasing its all-time high the day before. More stocks fell than rose in the index, but gains in tech companies offset weakness in banks and utilities.

The Dow Jones Industrial Average also rose less than 0.1% to 34,292.29. The Nasdaq Composite added 0.2% to 14,528.33.

Stocks set their recent highs on optimism that the economy will recover and that the Federal Reserve will keep rates low for a while.

A report released on Tuesday showed US consumer confidence continues to rise, exceeding economists’ expectations of a slight decline. This is the key to an economy that is mostly consumer spending.

A separate report showed that home prices rose again across the country in April and have continued their breakneck pace.

With one day left in June, the market is preparing to end a strong first half of the year. The S&P 500 is on track with a plus of 14.3%, more than double its annual average since the beginning of the millennium.

Major banks announced plans to return billions of dollars to their shareholders through dividend increases and share buybacks after passing recent Federal Reserve “stress tests”.

The central bank maintains its position that high inflation is likely to be temporary. That would allow him to keep interest rates down longer than they would otherwise.

Long-term bond yields have leveled off after skyrocketing earlier in the year due in part to inflation concerns. The 10-year Treasury yield was constant at 1.48%.

In other trading, US benchmark crude oil rose 44 cents to $ 73.42 a barrel in electronic trading on the New York Mercantile Exchange. It rose 7 cents on Tuesday to $ 72.98 a barrel. Brent crude, the international standard, rose 34 cents to $ 74.62 a barrel.

The US dollar was trading at 110.49 Japanese yen, versus 110.52 yen. The euro rose from $ 1.1898 to $ 1.1903.

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AP Business authors Damian J. Troise and Stan Choe contributed.

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