BEIJING, Nov. 3 (BUS) – Most stocks in Asia fell on Wednesday, dragged down by concerns about disruption to supply and shipping chains, despite the Dow Jones Industrial Average closing for the first time above 36,000 points.
Standards fell in most major markets except for Sydney and Taipei. Tokyo markets were closed for a holiday.
Investors pressed the pause button while awaiting comments from Wednesday’s federal policy meeting, in which the central bank is expected to unveil plans to ease unusual support measures to support markets and the economy during the pandemic, the Associated Press (AP) reported.
Federal Reserve Chairman Jerome Powell indicated that the Fed will announce after the policy meeting that it will start reducing monthly bond purchases of $120 billion as soon as this month. These purchases are intended to keep long-term loan rates low to encourage borrowing and spending.
“Markets are largely in a wait-and-see mode ahead of the US Federal Reserve meeting. The question is not a question of tapering, which at this point appears to be an inevitable outcome, but more about the timing of future rate hikes,” Mizuho Bank said in a comment.
Hong Kong’s Hang Seng fell 0.4% to 24993.21 while Shanghai Composite lost 0.2% to 3,499.74.
Chinese Premier Li Keqiang’s comments on downward pressure on the economy also spurred investors.
In remarks reported by the official Xinhua News Agency, Li said the government needs to provide more support to smaller companies, cut taxes and fees, and “do a good job in ensuring the stability of supply and prices of electricity and coal and take strong measures to support industrialization.”
Seoul’s Kospi lost 1.2% to 2,977.33, while Sydney’s S&P/ASX 200 rose 0.9% to 7,392.70. Taiwan also advanced.
Most Asian countries have also kept their monetary policy loose to deal with the repercussions of the pandemic-related lockdowns and travel restrictions. But some central banks have begun to ease acceleration in response to higher prices.
This includes New Zealand, where the unemployment rate fell to 3.4%, its lowest level in 14 years, despite the shutdown of the largest city in Auckland, Statistics New Zealand reported on Wednesday. The country’s share standard has hardly changed.
The Reserve Bank of New Zealand doubled its benchmark interest rate to 0.5% last month in its first increase in more than seven years. Unemployment figures, along with high inflation figures, will continue to pressure the country’s central bank to continue raising interest rates.
On Tuesday, the Dow rose 0.4% to 36,052.63, while the S&P 500 extended its winning streak for a fourth day, climbing to 4,630.65. The Dow Jones rose 0.4% to 36,052.63, and the technology-heavy Nasdaq rose 0.3% to 15649.60.
The Russell 2000 index hit an all-time high since March, up 0.2% to 2,361.86.
Technology and healthcare stocks have helped underpin a lot of the progress. Losses in energy stocks and a mix of companies that rely on direct consumer spending tempered the gains.
Investors have been scouring corporate earnings for clues about how companies are performing while the economy weathers the pandemic.
Cloud networking company Arista Networks rose 20.4% to post the biggest gain in the S&P 500 after giving investors encouraging financial expectations after a strong third-quarter report.
Bond yields fell. The yield on the 10-year Treasury fell to 1.54% from 1.57% late Monday.
Crude oil prices fell 0.2% and energy stocks weighed. Exxon Mobil shares fell 1.2 percent.
On Wednesday, benchmark US crude lost $1.23 to $82.68 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the basis for international pricing, fell 91 cents to $83.81 a barrel.
Later Wednesday, investors will get another update on services, which make up a large part of the economy, when the Institute for Supply Management releases its services sector index for October.
The central bank’s plan to cut its bond purchases also comes as businesses and consumers struggle with rising costs for raw materials and finished goods. Supply chain problems reduce companies’ finances and push companies to raise prices.
The labor market recovery is another focus of the central bank. The labor market has lagged behind the rest of the economic recovery as people are reluctant to return to work. Investors will get another update on Friday when the Labor Department releases its jobs report for October.
In other trading, the US dollar fell to 113.85 yen from 113.97 yen. The euro rose to $1.1586 from $1.1580.
RAE