Asian stocks sink after Wall St rises

Tuesday, March 2, 2021 | Joe Mcdonald, AP Business Writer


A man walks past a bank's electronic board showing the Hong Kong share index at Hong Kong Stock Exchange in Hong Kong Tuesday, March 2, 2021. Asian stock markets were mixed Tuesday after Wall Street rose as investor concern about possible higher interest rates receded. (AP Photo/Vincent Yu)

BEIJING (AP) — Asian stock markets declined Tuesday after Wall Street rose as a wave of investor concern about possible higher interest rates receded.

Tokyo, Shanghai, Hong Kong and Sydney declined. Seoul advanced.

Overnight, Wall Street's benchmark S&P 500 index climbed 2.4%, recovering most of its losses from the past week.

That came after a selloff in U.S. Treasury bonds eased. That helped to assuage investor concerns that the cost of borrowing might rise, putting downward pressure on the U.S. economic recovery.

“Asian markets appear to be taking a breather this morning, having led the global equity recovery yesterday,” Jeffrey Halley of Oanda said in a report.

Also Tuesday, Australia's central bank left its policy unchanged at its March meeting.

Meanwhile, Japan reported employment rose despite a state of emergency to cope with renewed coronavirus outbreaks and South Korea reported higher factory output.

The Shanghai Composite Index lost 1.5% to 3,497.78 and the Nikkei 225 in Tokyo declined 0.9% to 29,384.85. The Hang Seng in Hong Kong declined 1.5% to 29,020.46.

The Kospi in Seoul advanced 0.4% to 3,024.16 after the government reported factory production increased by a better-than-forecast 7.5% in January over a year earlier, up from December's 2.5%.

The S&P-ASX 200 in Sydney was off 0.4% at 6,762.30. India's Sensex opened up 0.4% at 50,021.56. New Zealand and Southeast Asian markets rose.

On Wall Street, the S&P 500 rose to 3,901.82 in its biggest single-day gain since June 5. The Dow Jones Industrial Average gained 2% to 31,535.51. The Nasdaq composite climbed 3% to 13,588.83.

The yield on the 10-year Treasury, or the difference between its market price and the payout if an investor holds it to maturity, fell to 1.43% after reaching its highest level in more than a year last week.

Stocks turned lower in late February after a rapid rise in bond yields, caused by a fall in their market price, fueled concerns about higher inflation. The yield on the 10-year Treasury note climbed as high as 1.5%. It was at 1.41% on Tuesday.

Bond yields influence rates on mortgages and other borrowing.

They have climbed as investors bet coronavirus vaccination efforts would get economic growth back on track. That fueled concerns about inflation and prompted investors to move money out of bonds and into stocks and other assets that do better when consumer prices rise.

Investors are looking for more information about the U.S. economic outlook when Federal Reserve officials deliver speeches this week. Lael Brainard, an advocate for looser monetary policies, will give a monetary policy speech on Tuesday and Fed Chair Jerome Powell speaks Thursday.

They also are watching Washington after the House of Representatives approved President Joe Biden's $1.9 trillion economic aid package early Saturday and sent it to the Senate. It includes one-time payments to the public and aid to struggling businesses and local governments.

Johnson & Johnson rose 0.5% after the Food and Drug Administration approved the company's coronavirus vaccine, one that does not require extremely cold refrigeration like the ones made by Moderna and Pfizer.

In energy markets, benchmark U.S. crude fell 79 cents to $59.85 per barrel in electronic trading on the New York Mercantile Exchange. The contract sank 86 cents to $60.64 on Monday. Brent crude, used to price international oils, retreated 81 cents to $62.88 per barrel in London. It declined 73 cents the previous session to $63.69 per barrel.

The dollar advanced to 106.85 yen from Monday's 106.81 yen. The euro fell to $1.2021 from $1.2047.

Featured Article: What is a Leveraged Buyout (LBO)?



7 Lithium Stocks That Will Power the Electric Vehicle Boom

Demand for lithium is set to increase exponentially in the next few years. In fact, according to Statista, demand for lithium may very well double to 820,000 tons in that time. Some of that demand will come from companies that are manufacturing the batteries that we use every day. For example, lithium is an essential component of the batteries that power our mobile devices.

But the real growth will come as the United States goes all-in on electric vehicles (EVs). The Biden administration recently announced plans to have the U.S. government’s fleet of over 600,000 vehicles converted to EVs.

And as you’re aware, EV stocks are in a bubble of some sort at the moment. Some of that is due to the increasing number of companies that went public last year. However, as investors are beginning to realize, not all of these companies will be the next Tesla. In fact, some of these companies may never be successful at bringing an EV to market, at least not at the scale that will be required.

The ones that do make it will need lithium and lots of it. To help you sift through the best lithium stocks to buy, we’ve put together this special presentation.

View the "7 Lithium Stocks That Will Power the Electric Vehicle Boom".


Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Pfizer (PFE)2.1$39.35-1.3%3.96%25.39Hold$39.64
Johnson & Johnson (JNJ)2.3$169.08+0.1%2.39%26.58Buy$185.70
Compare These Stocks  Add These Stocks to My Watchlist 

MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau

© American Consumer News, LLC dba MarketBeat® 2010-2021. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information

© 2021 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research. As a bonus to opt-ing into our email newsletters, you will also get a free subscription to the Liberty Through Wealth e-newsletter. You can opt out at any time.