World News | Asian Shares Slip with Eyes on Inflation, US Economy

Tokyo, May 27 (AP) Asian shares fell Thursday, as investors watched for signs of inflation and awaited U.S. economic data expected later in the day.

Japan's benchmark Nikkei 225 shed 0.8per cent in early trading to 28,409.41. South Korea's Kospi dipped 0.7per cent to 3,146.54. Australia's S&P/ASX 200 inched down less than 0.1per cent to 7,089.90. Hong Kong's Hang Seng slipped 0.5per cent to 29,019.84. The Shanghai Composite index edged 0.1per cent to 3,597.85.

The Japanese government is expected to extend its “state of emergency” in some areas including Tokyo past May 31, in an effort to curb COVID-19 cases. Public concern has grown with the Olympics due to begin in Tokyo on July 23. Surveys show a majority of residents want the games canceled or postponed.

“There are push-backs all round right now, and they are going to buffet markets, largely because they aren't all pushing in the same direction,” RaboResearch said in a report.

Technology shares were under pressure, though Chinese mobile phone maker Xiaomi rose 4per cent after it confirmed that the U.S. had removed it from a blacklist for Chinese tech companies.

On Wall Street, the S&P 500 ended just under 0.2per cent higher after wavering between small gains and losses. Retailers and other companies that rely on consumer spending made solid gains. Communication and financial stocks also helped lift the market. The gains were tempered by declines in health care, technology and other stocks.

The S&P 500 rose 7.86 points to 4,195.99. The Dow Jones Industrial Average, which turned 125 years old Wednesday, gained less than 0.1per cent to 34,323.05. The Nasdaq added 0.6per cent to 13,738. The Russell 2000 index of smaller companies gained 2per cent to 2,249.27.

The S&P 500 hit an all-time high on May 7th, but then fell for two straight weeks heading into this week. The index is on track for a gain this week of about 1per cent.

The next key economic update is set for Thursday, when the Commerce Department releases its latest GDP report for the first quarter. Economists are expecting a huge rebound in 2021 and results from the beginning of the year will give Wall Street a clearer picture moving forward.

The growing economy has also raised inflation concerns, though analysts expect that much of the increase will be tied to economic growth and will be digestible. Concern centers around stronger inflation prompting governments and central banks to roll back economic stimulus and change course on interest rates. Federal Reserve officials have said that they see no need yet to change course.

Markets have been bumpy over the last few days as investors move past a stellar corporate earnings season and await additional clues on economic growth and inflation, which has been rising.

“That's just going to be the state of the market environment for some time to come,” said Kristina Hooper, chief global market strategist at Invesco.

Investors bid up shares in several retailers that delivered strong quarterly report cards. Dick's Sporting Goods jumped 16.9per cent after reporting a surge in first-quarter sales and solid earnings as team sports returned. Urban Outfitters rose 10per cent and Abercrombie & Fitch climbed 7.8per cent on similarly strong financial results.

In the U.S., where the vaccine rollout has progressed at a better pace than in Asia, retailers, hotels and cruise lines are poised for growth as more people get back to some semblance of normal.

In energy trading, benchmark U.S. crude slipped 23 cents to USD65.98 a barrel in electronic trading on the New York Mercantile Exchange. It gained 14 cents to USD66.21 per barrel. Brent crude, the international standard, lost 21 cents to USD68.66 a barrel.

In currency trading, the U.S. dollar edged up to 109.15 Japanese yen from 109.14 yen. The euro cost USD1.2189, down from USD1.2192. (AP)

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)