BANGKOK (AP) — Asian shares exhibited a mixed performance on Tuesday following the recent rise of U.S. stock indexes to new record highs. The move comes at the onset of a week filled with profit updates from major U.S. companies.
Japan's Nikkei 225 index initially surged upon reopening after a holiday on Monday, but ultimately shed 0.3%, closing at 39,694.89. The market's initial rise was attributed to investor relief regarding Prime Minister Shigeru Ishiba's commitment to remaining in office after his ruling coalition lost its upper house majority in Sunday’s election. However, the election outcomes have introduced increased political uncertainty, limiting Ishiba’s government’s ability to effectively push through legislation.
A potential breakthrough in U.S.-Japan trade talks could provide Ishiba with a temporary reprieve, yet there have been minimal signs of progress regarding the threat of impending higher tariffs on Japanese exports to the U.S., scheduled to begin on August 1. Stephen Innes from SPI Asset Management commented that Ishiba's leadership claim appears precarious, referencing a historical trend where the last three leaders of the Liberal Democratic Party (LDP) who faced similar electoral losses did not last more than two months in office.
In contrast, the Hang Seng index in Hong Kong increased by 0.3% to 25,057.11, while the Shanghai Composite index mirrored this gain, also rising by 0.3% to 3,568.78. Conversely, South Korea’s Kospi index fell significantly, dropping 1.4% to 3,165.40, amid investor worries over the looming August 1 deadline for negotiating a deal with U.S. President Donald Trump to avoid a 25% tariff on exports.
Australia’s S&P/ASX 200 index remained relatively unchanged at 8,666.30. Indian markets showed a slight uptick with the Sensex gaining 0.3%, while Thailand's SET index edged up by less than 0.1%. As of now, many proposed tariff hikes by President Trump have been paused following an extension of the deadline for negotiations, which has led to a cautious yet hopeful sentiment in the markets.
On the U.S. front, stock indexes reached new records on Monday, starting a week likely filled with profit announcements from significant U.S. corporations. General Motors is expected to share its latest profit results alongside other major companies such as Alphabet, Coca-Cola, and Tesla.
The S&P 500 climbed by 0.1% to 6,305.60, narrowly surpassing its previous all-time high set on Thursday. The Dow Jones Industrial Average experienced a slight decline, falling less than 0.1% to 44,323.07. Meanwhile, the Nasdaq composite advanced by 0.4%, setting its own record at 20,974.17.
Verizon Communications led the upward trend, marking a 4% increase after reporting stronger-than-expected profits and higher revenues for the quarter, while also raising its full-year forecasts. This positive performance helped balance the 5.4% drop experienced by Sarepta Therapeutics, which fell in the wake of the FDA's request for the company to halt shipments of its gene therapy for Duchenne muscular dystrophy due to safety concerns.
Block, the company founded by Jack Dorsey that encompasses brands like Square and Cash App, surged by 7.6% as it learned it would be joining the widely-followed S&P 500 index, replacing Hess after its acquisition by Chevron. Additionally, Cleveland-Cliffs saw a substantial rally of 12.4% following the news that it reported a smaller-than-expected loss and achieved a record shipment of 4.3 million net tons of steel during the quarter, attributing some of its success to the favorable impacts of tariffs on domestic manufacturing.
In commodity trading, U.S. benchmark crude oil experienced a decrease of 71 cents, settling at $65.24 per barrel, while Brent crude, the international standard, dropped by 69 cents to $68.52 per barrel. The U.S. dollar strengthened slightly, rising to 147.62 Japanese yen from 147.38 yen, while the euro dipped to $1.1691 from $1.1696.
