A person stands in front of an electronic stock board showing Japan’s Nikkei index at a securities firm on Aug 1, in Tokyo. (AP)
TOKYO, Aug 6, (AP): Asian shares were mostly higher in muted trading Wednesday, after discouraging signs about the US economy sent Wall Street shares declining, and Investors are sifting through a slew of corporate earnings reports to assess how businesses may have been affected by USP resident Donald Trump’s tariffs.
Among Japanese companies, automakers Honda Motor Co. and Toyota Motor Corp. will report fiscal first quarter results this week, as will electronics and entertainment company Sony Corp. Japan’s benchmark Nikkei 225 rose 0.6% to finish at 40,794.86. Australia’s S&P/ASX 200 added 0.8% to 8,843.70. South Korea’s Kospi was little changed, gaining less than 0.1% to 3,198.14.
Hong Kong’s Hang Seng rose 0.2% to 24,958.75, while the Shanghai Composite gained 0.8% to 3,633.99. U.S. futures were up 0.5%. On Tuesday, the S&P 500 fell 0.5% to 6,299.19, coming off a whipsaw stretch where it went from its worst day since May to its best since May. The Dow Jones Industrial Average dropped 0.1% to 44,111.74, and the Nasdaq composite fell 0.7% to 20,916.55.
A weaker-than-expected report on activity for US businesses in services industries like transportation and retail added to worries that Trump’s tariffs may be hurting the economy. But conversely such indicators raise hopes the Federal Reserve may cut interest rates. That along with a stream of stronger-than-expected profit reports from US companies helped to keep losses in check.
The S&P 500 remains within 1.4% of its record. The pressure is on companies to report bigger profits after the US stock market surged to record after record from a low point in April. The big rally fueled criticism that the broad market had become too expensive. For stock prices to look like better bargains, companies could produce bigger profits, or interest rates could fall. The latter may happen in September, when the Fed has its next policy meeting.