Stock market today: Asian stocks are mixed ahead of this week's Fed meeting (2024)

HONG KONG (AP) — Asian stocks were mixed on Tuesday in a busy week with several top-tier reports on U.S. inflation due along with a policy meeting of the Federal Reserve.

U.S. futures and oil prices fell.

In Tokyo, the Nikkei 225 index was up 0.3% at 39,155.16 as an upward revision of Japan’s economic data on Monday was well received, while continued weakness of the yen boosted exports. Investors are watching for the outcome of a meeting by the Bank of Japan. The central bank raised its benchmark interest rate in March from 0 to 0.1% from minus 0.1% for the first time in 17 years.

Analysts said markets were leaning toward two rate hikes by the end of this year, with broad expectations of further rate increases as soon as July.

Investors are preparing for a busy week on Wall Street. More from AP’s Seth Sutel.

Hong Kong’s Hang Seng sank 1.6% to 18,079.93, and the Shanghai Composite lost 0.9% to 3,022.96 after reopening from a public holiday. Markets remained cautious ahead of a report on inflation in China due out Wednesday.

Australia’s S&P/ASX 200 slipped 1.6% to 7,735.50. South Korea’s Kospi was 0.4% higher to 2,710.61.

On Monday, the S&P 500 rose 0.3% to 5,360.79, topping its all-time high set last week. The Nasdaq composite also set a record after rising 0.3% to 17,192.53, while the Dow Jones Industrial Average gained 0.2% to 38,868.04.


Stock market today: Japan’s Nikkei 225 hits new record close, as other world markets advance

Japan’s Nikkei 225 index hits a record high close of 40,913.65

Stock market today: Asian shares are mostly higher after Wall Street hits more records

Data on the economy have come in mixed recently, and traders are hoping for a slowdown that stops short of a recession and is just right in magnitude. A cooldown would put less upward pressure on inflation, which could encourage the Federal Reserve to cut its main interest rate from its most punishing level in more than two decades.

But the numbers have been hard to parse, with Friday’s stronger-than-expected jobs report coming quickly on the heels of weaker-than-expected reports on U.S. manufacturing and other areas of the economy. Even within U.S. consumer spending, the heart of the economy, there is a sharp divide between lower-income households struggling to keep up with still-high inflation and higher-income households doing much better.

“Bottom line, the data remains mixed, leaving all of the major macro outcomes still on the table for this year,” according to Morgan Stanley strategists led by Michael Wilson.

In the meantime, companies benefiting from the AI boom are continuing to report big growth almost regardless of what the economy and interest rates are doing.

Nvidia, for example, is worth roughly $3 trillion and rose 0.7% Monday after reversing an early-morning loss. It was the first day of trading for the company since a 10-for-one stock split made its share price more affordable to investors, after it ballooned to more than $1,000 amid the AI frenzy.

Treasury yields were mixed in the bond market ahead of reports later in the week that will show whether inflation improved last month at both the consumer and wholesale levels.

On Wednesday, the Federal Reserve will announce its latest decision on interest rates. Virtually no one expects it to move its main interest rate then. But policy makers will be publishing their latest forecasts for where they see interest rates and the economy heading in the future.

The last time Fed officials released such projections, in March, they indicated the typical member foresaw roughly three cuts to interest rates in 2024. That projection will almost certainly fall this time around. Traders on Wall Street are largely betting on just one or two cuts to rates in 2024, according to data from CME Group.

In the bond market, the yield on the 10-year Treasury rose to 4.46% from 4.43% late Friday. The two-year yield, which more closely tracks expectations for the Fed, slipped to 4.88% from 4.89%.

In other dealings, U.S. benchmark crude oil gave up 14 cents to $77.60 per barrel in electronic trading on the New York Mercantile Exchange.

Brent crude, the international standard, was down 19 cents to $81.44 per barrel.

The U.S. dollar rose to 157.25 Japanese yen from 157.04 yen. The euro climbed to $1.0769 from $1.0766.


AP Business Writer Stan Choe contributed.

Stock market today: Asian stocks are mixed ahead of this week's Fed meeting (2024)


What happens to the stock market when the Fed raises rates? ›

As a general rule of thumb, when the Federal Reserve cuts interest rates, it causes the stock market to go up; when the Federal Reserve raises interest rates, it causes the stock market to go down. But there is no guarantee as to how the market will react to any given interest rate change.

Why do stock prices fluctuate from day today? ›

Demand and supply

Over time, the proportion of demand and supply tends to fluctuate, leading to price movements in the market.

Why Asian Paints markets are down? ›

Leading paint manufacturers lost sheen following concerns over increased competition in the industry after the entry of Aditya Birla group firm's Grasim Industries in the decorative paints segment. Grasim Industries has entered the paints sector with the much-anticipated launch of its Birla Opus range of products.

Why invest in Asia now? ›

1. Positive Regional Growth Outlook - The region has become wealthier, stronger economically, and more self-reliant. Asia has been, and is expected to remain, the major regional contributor to global growth. These trends are underpinning healthy real estate demand fundamentals.

Did the Feds raise rates today? ›

The Federal Reserve made the decision to keep its benchmark interest rate unchanged at its most recent policy meeting, and rates haven't moved since the start of 2024 following 11 rate hikes in 2022 and 2023.

Do bank stocks go up when Fed raises rates? ›

The Fed puts rising rates into place to try to combat inflation. So, do bank stocks do well when interest rates rise? As a general rule, bank stocks tend to increase when interest rates rise, as the banks have potential to bring in more revenue.

What happens in the stock market if interest rates increase? ›

Cost of borrowing: Higher interest rates increase the cost of borrowing for companies, which can reduce their profits and future cash flows. Lower profits can lead to lower stock valuations and stock prices. Consumer spending: Higher interest rates can discourage consumer spending as borrowing becomes more expensive.

What time of day is cheapest to buy stocks? ›

The best time of day to buy stocks is usually in the morning, shortly after the market opens. Mondays and Fridays tend to be good days to trade stocks, while the middle of the week is less volatile.

What time of day is stock highest? ›

Market volume and prices can and do go wild first thing in the morning, precisely the first 15 minutes. People are making trades based on the news. Power hour between 3:00 pm and 4:00 pm is also a very popular time. The best time to buy stocks is 9:30 am to 11:00 am EST because the market is most liquid.

Are stock prices higher in the morning or afternoon? ›

The best time of day to buy and sell shares is usually thought to be the first couple of hours of the market opening. The reason for this is that all significant market news for the day is factored into the stock price first thing in the morning.

What is the largest Asian stock exchange? ›

The Shanghai Stock Exchange is the world's third largest stock market by market capitalization. It is also Asia's biggest stock exchange.

Which is Asia number one stock market? ›

Asia's best performing stock markets in H1 2024: Taiwan, Japan top list.

Why invest in Asian equities? ›

We believe Asian equities are attractive due to the strong earning potential of companies and attractive valuations, especially relative to developed markets. A pick-up in global activity, better corporate earnings, and receding currency and debt risks across the region all contribute to a positive outlook.

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