Stock Market Today: Asian Stocks Mixed After Dow Sets New Record

Asian stocks were mixed on Tuesday as investors grappled with weak economic data from China and waited to see the outcome of a key Communist Party political meeting in Beijing.

US futures rose while oil prices fell.

Japan’s benchmark Nikkei 225 index rose 0.2% to 41,275.08 after reopening following a holiday.

Hong Kong’s Hang Seng index fell 1.4% to 17,760.36 and the Shanghai Composite index fell 0.1% to 2,970.945.

Markets were still digesting a set of weaker economic data of China released on Monday, when the government reported that annual economic growth fell from 5.3% in the first quarter to 4.7% in the April-June quarter.

This has led some economists to reduce their growth forecasts. Goldman Sachs revised its forecast for China’s annual economic growth to 4.9% from a previous estimate of 5.0%. JP Morgan lowered its full-year outlook for China’s GDP growth in 2024 to 4.7% from a previous projection of 5.2%.

Other policies were expected to be released later this week four-day economic meeting, a closed-door plenary meeting of the ruling Communist Party. It is expected to establish strategies and policies for the next decade, in line with leader Xi Jinping’s drive to pursue advances in future technologies.

South Korea’s Kospi added 0.2% to 2,865.21 and Australia’s S&P/ASX 200 fell 0.2% to 7,999.30.

On Monday, positive results from Wall Street the momentum kept driving up.

YOU&P 500 rose 0.3% to 5,631.22, finishing just shy of reaching its all-time high last week. It’s coming off its 10th winning week in the last 12, driven largely by expectations that inflation is slowing down enough to convince the Federal Reserve will ease interest rates brief.

The Dow Jones Industrial Average rose 0.5% to 40,211.72 and set its own record, while the Nasdaq Composite rose 0.4% to 18,472.57 and finished just below its high.

Some of the best-performing areas of the market were those that performed better when former President Donald Trump’s election odds improved. Trump Media & Technology Group, the company behind Trump’s Truth Social platform, jumped 31.4%. Bitcoin rose above $64,000 after Trump, who painted himself as a crypto-friendly candidatesurvived an assassination attempt on the weekend.

Long-term Treasury bond yields also rose higher than short-term ones, and the 10-year Treasury yield rose to 4.22% from 4.19% on Friday. Something similar happened after last month debate between Trump and President Joe Biden, as traders maneuvered in anticipation of a Republican sweep in November, which could ultimately mean policies that increase US government debt.

Shares of large financial companies, which could benefit from a lighter regulatory touch by a Republican administration, also helped lead the market. JPMorgan Chase rose 2.5% and was one of the strongest forces pushing the S&P500 higher.

Investment bank Goldman Sachs rose 2.6% after report stronger profit and revenue in the last quarter than analysts expected. BlackRock, the asset manager behind the iShares exchange-traded funds, fell 0.6% after beating profit forecasts but was a little shy on revenue.

For about a year, the Fed has kept its key interest rate at the highest level in more than two decades. Lower rates would release pressure built up on the economy due to how expensive it has become to borrow money to buy housescars or anything credit cards. Fed officials, however, I have said they want to see “more good data” on inflation before taking any action.

Speaking before the Economic Club of Washington, Federal Reserve Chairman Jerome Powell said again on Monday he will not send any signal about when the Fed might cut interest rates. But he also said Fed officials understand the risks of waiting too long and not long enough. Cuts that are too late could tip the US economy into a recession, while cuts that are too aggressive could allow inflation to reaccelerate.

In other trading, benchmark US crude oil lost 59 cents to $81.32 per barrel in electronic trading on the New York Mercantile Exchange.

Brent crude, the international standard, gave up 56 cents to $84.29 per barrel.

The US dollar rose to 158.51 Japanese yen from 158.01 yen. The euro fell to $1.0893 from $1.0894.