Asian stocks are mostly lower in quiet trading ahead of the Biden-Xi meeting

Asian stocks are mostly lower in quiet trading ahead of the Biden-Xi meeting

HONG KONG (AP) — Stocks fell Monday in quiet trading in Asia ahead of a meeting this week between U.S. President Joe Biden and Chinese leader Xi Jinping.

The Tokyo Stock Exchange advanced but other markets were little changed, falling. Oil prices fell.

Biden and Xi are scheduled to meet on the sidelines of the Asia-Pacific Economic Cooperation summit this week amid hopes for improved relations between the two largest economies.

Wall Street rose sharply on Friday to add to an already strong November, which is on track to be one of the market’s best months of the year. Expectations of an interest rate hike by the US Federal Reserve in December, despite a report showing consumer inflation expectations rising.

The Nikkei 225 in Tokyo added 0.5% to 32,742.00, and the Hang Seng in Hong Kong rose 0.1% to 17,227.10.

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The Shanghai Composite Index fell 0.1% to 3,035.95, and the Kospi in Seoul fell 0.1% to 2,408.37.

Australia’s S&P/ASX 200 index fell 0.1% to 6,972.20 points.

On Wall Street on Friday, the S&P 500 jumped 1.6% to 4,415.24. The Dow Jones index rose 1.2% to 34,283.10 points, and the Nasdaq index jumped 2% to 13,798.11 points.

Big Tech stocks were the strongest forces pushing the S&P 500 higher, including a 2.3% gain for Apple and a 2.5% rise for Microsoft.

This earnings reporting season looks to be much better than analysts expected, likely showing the first earnings-per-share growth for S&P 500 companies in a year, according to FactSet. But the focus is shifting toward what companies will do later this year and beyond as interest rates remain high and the U.S. economy is expected to slow.

Hologic stock jumped 7.3% to post the biggest gain in the S&P 500 after the maker of diagnostic tools and other products focused on women’s health reported better-than-expected fourth-quarter earnings.

Doximity was another winner, rising 16.2% after it also reported stronger-than-expected earnings.

The Fed said it wants to keep those expectations low because it could lead to a vicious cycle that keeps inflation high. The release of the University of Michigan report initially trimmed Treasury yields from their lows, causing stock indexes to fluctuate. But the stock market quickly ignored the data and continued to rise.

By late Friday, traders were betting on just a 9.1% chance that the Federal Reserve would raise its key interest rate at its next meeting in December, according to data from CME Group. This is down from 14.6% the day before.

Rising interest rates and bond yields hurt stock prices and other investments, while slowing the economy broadly and increasing pressure on the financial system in hopes of keeping inflation under control.

On Thursday, a jump in Treasury yields sent stocks lower, breaking an eight-day winning streak for the S&P 500, one of the longest in the past two decades. This came after the Fed’s Powell dashed some hopes that had built up among traders that the Fed might finally be done raising its key interest rate.

After the yield on the 10-year Treasury note rose above 5% last month to its highest level since 2007, partly due to expectations of heavy borrowing by the US government, the S&P 500 briefly fell more than 10% below its highest level for this year. General. Since then, the market has rebounded as “year-end greed” emerges and 10-year yields decline, strategists wrote in a global Bank of America research report.

In the oil market early Monday, a barrel of benchmark U.S. crude oil for December delivery lost 55 cents to $76.62. It rose $1.43 on Friday to settle at $77.17.

Brent crude, the international standard, fell 60 cents to $80.83 a barrel. On Friday, it added $1.42 to $81.43 per barrel. Both lost nearly 4% last week on concerns about supplies outpacing demand.

In currency trading, the dollar rose to 151.66 Japanese yen from 151.47 yen. The euro was unchanged at $1.0686.

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    (tags for translation) Associated Press 

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