Asian Shares Mixed as Wall Street Faces Big Tech Losses

BANGKOK (AP) — On Thursday, shares in Asia showed mixed results following a downturn on Wall Street, primarily influenced by losses among major technology companies.

The Nikkei 225 index in Tokyo saw a rise of 0.7%, reaching 38,400.00, while Australia’s S&P/ASX 200 rose by 0.8% to 8,473.30.

In contrast, South Korea’s Kospi remained steady, unchanged at 2,503.01, after the Bank of Korea decided to lower its benchmark interest rate to ease economic pressures.

The Bank of Korea announced a quarter-point cut to the key rate, bringing it down to 3%. In addition, the bank adjusted its economic growth forecasts downward, now estimating a growth rate of 2.2% for this year and 1.9% for 2025.

Chinese markets experienced declines as investors opted to realize profits from earlier gains. The Hang Seng index in Hong Kong fell 1.3% to 19,344.07, while the Shanghai Composite index decreased by 0.3% to 3,299.87.

U.S. stock markets were closed on Thursday for Thanksgiving and will reopen for a half-day session on Friday. On Wednesday, the S&P 500 saw a decline of 0.4%, achieving a value of 5,998.74, which ended a seven-day winning streak. Despite more stocks recording gains within the index, the overall decline indicated market weakness.

The Dow Jones Industrial Average also dipped by 0.3%, concluding at 44,722.06, marking its first loss after five consecutive gains. The Dow and S&P 500 remain close to the all-time highs they reached on Tuesday.

Additionally, the Nasdaq composite, a key indicator influenced by technology stocks, dropped 0.6% to 19,060.48. Major losses from tech giants such as Nvidia, Microsoft, and Broadcom contributed to this downturn. Nvidia, the semiconductor leader, fell by 1.2%, having significant weight on the markets. Microsoft matched this loss of 1.2%, while Broadcom dropped 3.1%.

Further compounding losses were recent performance reports from major personal computer manufacturers. HP saw a considerable decrease, plummeting 11.4% after offering disappointing earnings forecasts. Similarly, Dell faced a steep decline of 12.2% after its revenue report fell short of expectations.

Despite notable losses in technology and personal computer sectors, gains in financial and healthcare companies helped cushion overall market declines. Berkshire Hathaway increased by 0.9%, and Merck & Co. saw a 1.5% rise.

According to the Commerce Department, the U.S. economy displayed robust growth at an annual rate of 2.8% for the July-September period, which was consistent with earlier estimates. This growth has been attributed to strong consumer spending and a notable increase in exports.

While consumer activity has fueled economic growth, the latest earnings reports from various retailers have presented a mixed view. For instance, department store operator Nordstrom faced an 8.1% drop following warnings of declining sales trends that began in late October. On the contrary, clothing retailer Urban Outfitters saw an increase of 18.3% after exceeding analysts’ financial expectations for the third quarter.

Consumers are currently feeling the effects of rising prices, with the government reporting that the personal consumption expenditures (PCE) index rose to 2.3% in October, up from 2.1% in September. Although inflation has generally been decreasing since its peak over two years ago, recent data suggests that this decline may be stalling in the approach toward the Federal Reserve’s target of 2%.

The Federal Reserve has been actively adjusting its benchmark interest rates, which were initially raised from near-zero starting early 2022, reaching a two-decade high by mid-2023. After holding steady at this high, the Fed initiated rate cuts starting in September. With a second rate cut in November, markets are anticipating another quarter-point reduction in the upcoming December meeting. However, uncertainty looms as President-elect Donald Trump has indicated intentions to introduce sweeping new tariffs on trading partners, potentially raising prices on various goods and affecting inflation, which might lead the Fed to reconsider future interest rate cuts.

In early Thursday trading, U.S. benchmark crude oil prices fell by 15 cents to $68.57 per barrel, and Brent crude, the global standard, also dropped by 15 cents to $72.15 per barrel.

The U.S. dollar strengthened against the Japanese yen, rising to 151.56 from 151.12. Meanwhile, the euro declined to $1.0555, down from $1.0567.

Asia, Shares, Technology