Global Markets Experience Turbulence Amid High Expectations
Asian stocks took a hit on Friday morning, with Japan’s benchmark Nikkei plummeting over 2% in early trading. This decline was triggered by a sharp fall on Wall Street, driven by high expectations. United States futures and oil prices, however, bucked the trend and rose.
Japan’s Nikkei Takes a Tumble
The Japanese yen traded lower on Friday, with the dollar rising to 152.35 Japanese yen from 152.00 yen. The Bank of Japan’s decision to keep its benchmark rate unchanged at 0.25% was in line with market expectations.
China Defies Downtrend
China’s markets were the exception to the downturn, with the Hang Seng in Hong Kong surging 1.0% to 20,526.69 and the Shanghai Composite index rising 0.4% to 3,294.55. Factory activity in China returned to growth in October, with the official manufacturing purchasing managers’ index reaching 50.1, ending five straight months of contraction.
Australia and South Korea Feel the Pinch
Australia’s S&P/ASX 200 dropped 0.8% to 8,093.80, following a rise in its producer price index in the third quarter. South Korea’s Kospi remained virtually unchanged at 2,556.57.
Taiwan Semiconductor Manufacturing Corp. Takes a Hit
Taiwan’s Taiex lost 0.8%, weighed down by a 1% decline in Taiwan Semiconductor Manufacturing Corp., Apple’s chip supplier, following Apple’s quarterly earnings report.
US Markets Experience Sharp Decline
On Thursday, the S&P 500 sank 1.9% to 5,705.45, its worst day in eight weeks. The Dow Jones Industrial Average dropped 0.9% to 41,736.46, while the Nasdaq composite tumbled 2.8% to 18,095.15.
Microsoft and Meta Platforms Disappoint
Microsoft reported bigger profit growth than analysts expected, but its stock sank 6% as investors scoured for possible disappointments. Meta Platforms, the parent company of Facebook, also served up a better-than-expected profit report, but its stock fell 4.1% due to warnings of increased spending next year.
Bond Market Sees Mixed Reports
Treasury yields edged lower following a mixed set of reports on the U.S. economy. One report showed a measure of inflation slowing to 2.1% in September, while another report indicated growth in workers’ wages and benefits slowed during the summer.
Oil Prices Surge
U.S. benchmark crude oil gained $1.33 to $70.59 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, surged $1.23 to $74.04 per barrel.
Leave a Reply