Asian shares slip despite Wall St gains after Biden-Xi talks

Currency traders talk each other at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Wednesday, Nov. 17, 2021. Asian shares slipped Wednesday despite a rally on Wall Street. (AP Photo/Ahn Young-joon)

A currency trader watches monitors near screens showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won, right, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Wednesday, Nov. 17, 2021. Asian shares slipped Wednesday despite a rally on Wall Street. (AP Photo/Ahn Young-joon)

A currency trader passes by the screens showing the foreign exchange rates at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Wednesday, Nov. 17, 2021. Asian shares slipped Wednesday despite a rally on Wall Street. (AP Photo/Ahn Young-joon)

Pedestrians pass the New York Stock Exchange as it operates during normal business hours in the Financial District, Wednesday, Oct. 13, 2021, in the Manhattan borough of New York. Stocks rose in morning trading on Wall Street Tuesday, Nov. 16, as investors reviewed solid earnings reports from key retailers and an encouraging update on consumer spending. (AP Photo/John Minchillo, FILE)

TOKYO (AP) — Asian shares were mostly lower Wednesday despite a rally on Wall Street after virtual talks between President Joe Biden and China's Xi Jinping.

Japan's benchmark Nikkei 225 fell 0.4% to 29,688.33. South Korea's Kospi fell 1.2% to 2,962.42. Australia's S&P/ASX 200 lost 0.7% to 7,369.90. Hong Kong's Hang Seng fell 0.4% to 25,621.91, while the Shanghai Composite edged up 0.5% to 3,537.32.

The online talks between Biden and Xi late Monday U.S. time appeared to signal a step in the right direction but they did not yield any major steps toward resolving longstanding disputes over trade and other issues.

“Any concrete development from the meeting still awaits to be seen, but the amiable approach thus far in addressing issues from both parties pares down the risks of political tension in markets,” said Yeap Jun Rong, market strategist at IG in Singapore.

Stocks closed higher on Wall Street as investors reviewed solid earnings reports from big retailers and a surprisingly strong report on consumer spending.

The government reported that Americans largely shrugged off higher prices last month and stepped up their spending at retail stores and online. The Commerce Department said retail sales rose 1.7% in October. That’s the biggest gain since March and up from 0.8% in the previous month.

The S&P 500 index rose 0.4%, to 4,700.90 and is sitting just below the record it set on Nov. 8. The Dow Jones Industrial Average rose 0.2%, to 36,142.22. The Nasdaq rose 0.8%, to 15,973.86.

Technology stocks did much of the heavy lifting for the benchmark S&P 500, which had slightly more gainers than losers. Chipmaker Qualcomm rose 7.9%.

A wide range of companies that rely on consumer spending made solid gains. Home Depot rose 5.7% after the home improvement retailer reported surging sales and solid profits in the third quarter amid a hot housing market. The results also lifted competitor Lowe's by 4.2%.

Several companies that depend on consumer spending rose. Online crafts marketplace Etsy rose 5.1%. Nike rose 1.8% while Coach and Kate Spade parent Tapestry gained 1.5%.

The nation’s largest retailer, Walmart, also reported solid financial results while raising its profit forecast, but the stock fell 2.5% and gave back some of the big gains it’s made in the last few weeks.

Several other large retailers will release their latest financial results this week. Target reports its results on Wednesday and Macy’s reports results on Thursday.

Health care companies also rose. Communications companies and a makers of household goods and other consumer staples lagged the market.

Investors received another encouraging economic update from the Federal Reserve, which said industrial production rebounded in October with a 1.6% gain. The gain followed a 1.3% plunge in September.

Wall Street is closely monitoring the latest economic reports for more clues as to how businesses and consumers are dealing with rising inflation. Companies have been raising prices as they face higher raw materials costs and supply chain problems. Consumers have been willing to pay the higher prices on many goods, though analysts are concerned that consumers could eventually pull back on spending because of inflation.

Heightened concerns over inflation tripped up the broader market last week following a strong run that lasted several weeks as companies reported mostly solid earnings. The latest round of earnings is nearing its finish and the market has very few singular events or economic reports to focus on through the end of the year.

In energy trading, benchmark U.S. crude fell 51 cents to $80.25 a barrel in electronic trading on the New York Mercantile Exchange. It lost 12 cents on Tuesday to $80.76 per barrel. Brent crude, the international standard, lost 47 cents to $81.96 a barrel.

In currency trading, the U.S. dollar strengthened to 114.85 Japanese yen from 114.80 yen. It has been rising from the 110 yen level since September. The euro slipped to $1.1303 from $1.1322.