Stocks little changed in Hong Kong, Shanghai; Tokyo markets closed for holiday
BEIJING — Asian stock markets were mixed Monday after Wall Street turned in its biggest weekly gain in 16 months as investors watched efforts to negotiate an end to Russia’s war on Ukraine.
The Shanghai Composite Index CN:SHCOMP gained 0.1% while the Hang Seng HK:HSI in Hong Kong slipped 0.2%.
The Kospi in Seoul KR:180721 advanced 0.4% and Sydney’s S&P/ASX 200 AU:XJO rose 0.1%. Stocks fell slightly in Indonesia ID:JAKIDX, while benchmark indexes in Singapore SG:STI and Taiwan TW:Y9999 advanced. Japanese markets were closed for a holiday.
Wall Street’s S&P 500 index rose 1.2% on Friday after markets appeared to welcome the Federal Reserve’s attempt to fight surging inflation by raising its key interest rate.
Investors watched efforts to mediate a settlement to Russia’s attack, which has pushed up oil prices and added to uncertainty about the global economic outlook.
“It appears that there is a 50-50 chance of continuing with the pick-up in market sentiments,” said Tan Boon Heng of Mizuho Bank in a report.
The S&P SPX rose to 4,463.12, adding to a streak that included two days of 2% gains. The Dow DJIA advanced 0.8% to 34,754.93 and the Nasdaq composite COMP added 2% to 13,893.84. The three indexes had their best week since November 2020.
Russia’s attack has added to investor unease about the Fed and other central banks withdrawing stimulus that has pushed up share prices and tighter Chinese curbs on business and travel in response to coronavirus outbreaks.
Last week, Fed Chair Jerome Powell expressed confidence the economy is strong enough to withstand higher interest rates.
On Sunday, Turkey’s foreign minister, Mevlut Cavusoglu, said Ukraine and Russia are close to an agreement on “fundamental issues” after he traveled to both countries to meet his counterparts.
Cavusoglu said in return for its neutrality, Ukraine wants Turkey, Germany and the five permanent members of the U.N. Security Council to act as guarantors.
Also Monday, Disney’s Shanghai theme park closed as the city tried to control its biggest coronavirus flareup in two years. The southern business center of Shenzhen allowed shops and offices to reopen after a weeklong closure.
China’s case numbers in its latest infection wave are low compared with other major countries, but authorities are enforcing a “zero tolerance” strategy that has suspended access to some major cities.
In energy markets, benchmark U.S. crude CLJ22 rose $3.24 per barrel to $106.33 in electronic trading on the New York Mercantile Exchange. Brent crude BRNK22, the price basis for international oil trading, gained $3.07 to $111.00 per barrel in London.