NewzShares mostly retreated in Asia on Wednesday after U.S. stocks hit all-time highs, lifted by expectations of fat corporate earnings. futures were little changed and oil prices advanced.
In Tokyo, the Nikkei 225 lost 0.9% to 70,284.81, while the Kospi in South Korea also shed 0.9%, to 6,876.76. Hong Kong’s Hang Seng fell 0.6% to 24,129.96 and Taiwan’s Taiex edged 0.2% lower. Markets in Shanghai were closed for a national holiday.
In Australia, the S&P/ASX 200 edged 0.1% higher to 8,740.10. stocks forayed into new heights despite an array of challenges. The S&P 500 climbed 0.6% to a record of 7,818.93, topping its all-time high set in August.
Despite worries over the Iran war, high inflation and pressures from the bond market, the index at the heart of many 401(k) accounts has soared 23% since hitting a trough in late March. The Dow Jones Industrial Average added 0.5% to 51,521.28, while the Nasdaq composite tacked 0.4% onto its own all-time high set the day before, closing at 27,599.79. “The rally reflected confidence that corporate earnings, particularly across technology and AI-related sectors, can withstand elevated energy costs and restrictive interest rates,” Ng Jing Wen of Mizuho Bank said in a commentary.
“The resilience suggests investors continue to prioritize earnings momentum over near-term inflation risks,” she said. Record-high stock prices are helping investors feel better about their finances, or at least less bad, while Americans are generally feeling discouraged about keeping up with the fast-rising cost of living. Many of the fears that sent the U.S.
stock market to its bottom in March have indeed come true. Oil prices are high because of the war with Iran, which has made inflation worse. Yields have cranked higher in the bond market, which threatens to slow the economy by making it more expensive for everyone to borrow money.
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