Tokyo, Jul 22: Asian shares were trading mixed Wednesday following a rally on Wall Street, despite concerns about higher oil prices and inflation.
Japan’s benchmark Nikkei 225 fell 0.2 per cent to finish at 66,115.60, after the government reported that both imports and exports rose last month from a year earlier, as the weakening yen raised the value of both when converted from dollars to yen.
Australia’s S&P/ASX 200 added 0.3 per cent to 8,823.00. South Korea’s Kospi rose 0.7 per cent to 6,797.70. The Hang Seng dipped 1.1 per cent to 24,866.67, while the Shanghai Composite was little changed, slipping less than 0.1 per cent to 3,861.82.
More gains for makers of computer chips and other companies benefiting from the artificial-intelligence boom carried Wall Street higher. The S&P 500 climbed 0.9 per cent. The Dow Jones Industrial Average added 385 points, or 0.7 per cent, and the Nasdaq composite rose 1.3 per cent.
AI stocks once again were at the centre of the action, and they rose for a second straight day after tumbling the week before.
After rocketing higher because of the boom in investment in AI chips and data centres, they’ve come under pressure in recent weeks on worries that they shot too high.
Micron Technology jumped 12.2 per cent and added to its 1.9 per cent gain from the day before, coming off its 13.3 per cent drop from last week. Nvidia added 2 per cent, and they were the two strongest forces lifting the S&P 500.
The gains came despite more climbs for oil prices, which followed continued attacks between the United States and Iran.
In energy trading early Wednesday, benchmark US crude added USD 1.67 to USD 86.01 a barrel. Brent crude, the international standard, rose USD 1.84 to USD 92.85 a barrel.
“Oil makes the situation more difficult because Japan imports most of its energy. A weaker yen and higher crude prices arrive together like two waves hitting the same sea wall,” said analyst Stephen Innes, a former trader.
In currency trading, the US dollar inched down to 163.13 Japanese yen from 163.14 yen. The euro cost USD 1.1409, up from USD 1.1404.
Rising oil prices are again pushing inflation higher, just as increases for prices were slowing more than economists expected. That in turn could push the Federal Reserve and other central banks to raise interest rates, which would slow economies and undercut prices for stocks and other investments. (AP)
