BANGKOK (AP) — On Wednesday, shares in Asia experienced moderate increases following a mixed finish in U.S. stocks after a discouraging report revealed that U.S. retailers saw lower-than-expected earnings during the holiday season. Additionally, U.S. stock futures edged higher, and the prices of gold, silver, and oil also showed gains.
In Japan, markets were closed for a holiday, but trading in China was slightly positive, with Hong Kong's Hang Seng index rising by 0.3% to 27,265.52 and the Shanghai Composite index increasing by 0.3% to 4,139.56. South Korea’s Kospi extended its gains, climbing to 5,346.34, while Australia’s S&P/ASX 200 index soared by 1.5% to 8,999.20. Taiwan's Taiex also experienced a significant jump of 1.7%.
On Tuesday, U.S. stocks displayed a drift on Wall Street after a mix of profit reports from major U.S. companies. There were increased hopes that the Federal Reserve may consider cutting interest rates later this year to stimulate the economy, triggered by a troubling report on U.S. consumer spending. Mizuho Bank noted that “fresh data points to softening U.S. consumer momentum since last December as wage growth cools and household credit stress builds,” indicating weakened demand in eight out of 13 categories, including clothing and furniture.
The S&P 500 index dropped by 0.3% to close at 6,941.81, briefly rising above its all-time high set a few weeks ago. The Dow Jones Industrial Average managed a slight gain of 0.1%, setting its own record at 50,188.14, while the Nasdaq composite fell by 0.6% to 23,102.47. The bond market saw stronger activity, with Treasury yields declining after the report showed that U.S. retailers had earnings that fell short of economists' expectations, suggesting potential slowing momentum in household spending—the main engine of the U.S. economy.
A series of economic reports are expected this week, including an update on the unemployment rate from the U.S. government on Wednesday, and a report on Friday highlighting inflation's impact on U.S. consumers. These reports are anticipated to assist the Federal Reserve in determining future interest rate approaches, especially given the Fed’s current hold on interest rate cuts, which may last if inflation remains problematic. Conversely, a decline in the job market might encourage a quicker return to rate cuts.
In the corporate sector, Coca-Cola's stock fell by 1.5% after it reported earnings for the latest quarter that did not meet analysts' expectations. The company also provided a forecast for a vital growth measure in the upcoming year, which fell below analysts' forecasts. In contrast, S&P Global’s stock plummeted by 9.7%, following a profit outlook that did not satisfy market expectations. The firm has faced challenges recently, with concerns that competitors utilizing artificial intelligence may begin to overshadow its traditional data services.
Outside these earnings reports, Warner Bros. Discovery's stock climbed by 2.2% after Paramount announced an increased offer to purchase the entertainment company. Paramount's new proposal raised its offer to $30.25 per share for each quarter that the acquisition is not finalized past the end of the year, indicating confidence in regulatory approval. Furthermore, Paramount committed to paying $2.8 billion to Warner Bros. Discovery to facilitate its exit from a buyout agreement with Netflix.
In other market activities on Wednesday, U.S. benchmark crude oil demonstrated gains by 53 cents to reach $64.49 per barrel, while Brent crude rose by 52 cents to $69.32 per barrel. The U.S. dollar dipped to 153.66 Japanese yen from 154.40 yen, while the euro increased to $1.1908 from $1.1890. The prices for gold and silver also saw gains, with gold increasing by 0.8% and silver up by 2%. However, Bitcoin experienced a drop of 1.8%, settling just above $68,200.
