TOKYO (AP) — Asian shares declined in early Tuesday trading, as rising oil prices and worries about inflation worked as a dampener on some markets, countering the optimism that had come from robust corporate earnings reports. This was reported by Qazaqyia.kz citing Associated Press.
Japan’s benchmark Nikkei 225 dipped 1.6% to 68,098.54. Australia’s S&P/ASX 200 edged up 0.2% to 9,088.60. South Korea’s Kospi reversed course after surging earlier to drop 0.6% to 6,933.60. Hong Kong’s Hang Seng lost 0.6% to 25,289.88, while the Shanghai Composite shed 0.5% to 3,963.53.
Analysts said robust earnings reports in Asia, following those from the U.S., are helping counter worries about what the war in Iran will do to the global flow of crude and its impact on energy prices. Japan, for one, imports almost all its oil.
“First, the beneficiary base from AI investment has broadened. Demand spread across a wide range of industries, including semiconductor production equipment, power equipment, machinery, electronic components, and materials. AI demand effectively helped rediscover globally competitive companies across these sectors,” Masashi Akutsu and Tetsuhiro Tokuyama said in a recent report for BofA Securities.
They noted the recent strong earnings reports out of Japanese companies for the April-June quarter, adding that, just as with the U.S. Federal Reserve, the Bank of Japan will likely start moving to raise interest rates in the next few months.
On Wall Street, stocks edged further away from their record heights on Monday. The S&P 500 fell 0.5% but remains near its all-time high set Thursday. The Dow Jones Industrial Average dropped 272 points, or 0.5%, and the Nasdaq composite slipped 0.3%.