Asian stocks are mostly lower; China, Japan closed for holidays – Granthshala Toronto


Shares in Asia were lower in Monday trading, with many markets in Tokyo and Shanghai closed for the holidays.

The decline follows a retreat on Wall Street on Friday, where the S&P 500 rebounded 0.7%, but closed its best month so far this year.

Markets have climbed in recent weeks as investors remain optimistic that the epidemic is coming slowly and at least in the United States. The S&P 500 rose 5.2% in April, its best monthly gain since November 2020, when President Joe Biden was elected.

In Asia and many other countries, caseloids have increased and vaccination levels are low.

Hong Kong’s Hang Seng closed up 1.4% at 28,324.30 points and Kospi slipped 0.2% to 3,123,0007 in South Korea. Australia’s S&P / ASX 200 gained 0.1% to close at 7,034.80. Shares fell in Singapore and Taiwan.

US futures were high, with contracts up by 0.3% for both the Dow Industry and the S&P 500.

The yield was stable at 1.62% on the 10-year Treasury note.

With the closure of many markets, there were few news avenues to run the business.

The S&P 500 closed at 4,181.17 on Friday. The index gained less than 0.1% for the week. The Dow Jones Industrial Average fell 0.5% to 33,874.85 and the Nasdaq declined 0.9% to close at 13,962.68.

The Russell 2000 index of smaller companies was worse than the broader market, falling 1.3% to 2,266.45.

Investors backed away from technology, financial and communications stocks. Despite the decline, the S&P 500 ended with a 5.2% gain in April, its best month since November 2020, when President Joe Biden was elected. It gained about 28% between November and April.

Under Biden, the Dow did its best in the first 100 days under a new president since Frankel Delano Roosevelt took office on April 29 with a 9.9% return, according to LPL Financial, in 1933. The Dow delivered 6.1% deliveries during former President Donald. Trump’s first 100 days in office.

The benefit has come in the form of a large-scale coronovirus vaccination program, which helps people return to jobs and normal activity after more than a year of restrictions.

The rollout of the COVID-19 vaccination, large-scale support from the US government and the Federal Reserve, and increasingly positive economic data is expecting a strong rebound for the economy and strong corporate profit growth this year. This helps to push the stock to a higher level and maintains its all-time high index.

Trillions of dollars in government aid are helping the US economy recover from the epidemic. The Commerce Department said U.S. household income rose 21% last month, largely driven by payments of $ 1,400 that went for most Americans as part of President Biden’s economic package. Consumer spending grew at the fastest pace in nine months.

The Biden administration is pushing for more infrastructure spending to help the economy grow, although it does raise concerns about how taxes and inflation could be affected. To pay for his plans, Biden proposes to double the tax rates that Americans pay over $ 1 million a year on profits from stocks and other investments. The president wants to impose a 21% minimum tax on foreign earnings of corporations in a bid to prevent companies in low tax rates from making profits.

Recent earnings from corporate earnings have increased. According to FactSet, more than half of the companies in the S&P 500 have reported their results, reflecting earnings growth of 54% so far for the index.

Investors will receive another large dose of earnings reports to start in May, including drug maker Eli Lilly, Merck as well as results from Pepsi, Colgate-Palmolive, Railway CSX and drugstore giant CVS. Investors will also receive an April jobs report this week.

In other trades, benchmark US crude oil shed 14 cents to $ 63.44 a barrel in electronic trading on the New York Mercantile Exchange. It rose from $ 1.43 a barrel to $ 63.58 a barrel on Friday. Internationally, Brent crude was down 19 cents to $ 66.57 a barrel.

The US dollar climbed from 109.30 yen to 109.49 Japanese yen. The euro slipped from $ 1.2032 to $ 1.2024.

Elaine Kurtenbach, Associated Press

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