BANGKOK (AP) – Asian shares were generally up on Monday, following a slight retreat in U.S. stocks from record highs reached on Friday. Investors remain vigilant about developments surrounding the ongoing Ukraine crisis, especially after a summit involving President Donald Trump and Russian President Vladimir Putin, which yielded no significant breakthroughs.
In Asia, Japan’s Nikkei 225 index saw an increase of 0.9%, reaching 43,776.38. Similarly, Hong Kong's Hang Seng gained 0.3% to close at 25,344.48. The Shanghai Composite index experienced a notable rise of 1.2% to 3,740.50. Meanwhile, Australia’s S&P/ASX 200 remained largely unchanged, and South Korea's Kospi index saw a decline of 1.3%, settling at 3,184.17.
Later in the day, Trump was scheduled to meet with Ukrainian President Volodymyr Zelenskyy and several European leaders in Washington. The European leaders had not been part of Trump’s summit with Putin, and they are keen to present a united front to safeguard Ukraine and the continent from potential aggression from Moscow.
Attention is also focused on the upcoming annual meeting in Jackson Hole, Wyoming, which will gather key central bankers. Federal Reserve Chair Jerome Powell is set to address the economic policy conference on Friday. There are growing expectations that the Federal Reserve will consider cutting interest rates during its next meeting in September; however, mixed economic reports have moderated such predictions.
A recent report highlighted that U.S. consumer spending at retailers increased last month, contrasting with different data showing unexpected growth in manufacturing in New York state. Conversely, a report indicated that industrial production across the nation decreased last month, which was not anticipated by economists. Another study suggested that consumer sentiment in the U.S. is declining due to inflation worries, diverging from expectations of slight improvement.
On Wall Street, UnitedHealth Group experienced a significant surge of 12% on Friday after Warren Buffett’s Berkshire Hathaway disclosed purchasing nearly 5 million shares in the insurance company, valued at $1.57 billion. This acquisition was noteworthy given that UnitedHealth had seen its stock price halved earlier in the year due to a series of challenges.
However, Berkshire Hathaway’s shares dipped by 0.4%. Another stock making headlines was Applied Materials, which dropped by 14.1%. Despite exceeding analysts’ expectations in its latest quarterly report, the focus shifted to the company's forecast indicating decreased revenue in the upcoming quarter. This company is integral to semiconductor and advanced display manufacturing, and its CEO, Gary Dickerson, cited a "dynamic macroeconomic and policy environment" contributing to heightened uncertainty, particularly regarding its business prospects in China.
In related negative movements, SanDisk's shares fell by 4.6%, even after reporting strong quarterly profits that surpassed expectations. Investors were instead concerned about the company’s future profit projections, which fell short of Wall Street forecasts.
On the previous trading day, the S&P 500 index declined by 0.3% to close at 6,449.80, while the Dow Jones Industrial Average edged up slightly by 0.1% to 44,946.12. The Nasdaq composite index also dropped by 0.4%, finishing at 21,622.98.
In commodities, U.S. benchmark crude oil prices fell by 2 cents, settling at $62.82 per barrel, while Brent crude, the international standard, slipped by 6 cents to reach $65.79 per barrel. The U.S. dollar appreciated against the Japanese yen, rising to 147.38 from 147.18. Meanwhile, the euro held steady at $1.1703.
