Asian stocks climb after Wall Street ends a record-setting week mixed
People walk infront of Tokyo Stock Exchange building in Tokyo, on May 28, 2024. (AP Photo/Eugene Hoshiko)
HONG KONG (AP) — Asian stocks were mostly higher on Monday, supported by key rate decisions last week from the U.S. Federal Reserve, Japan, China and Britain.
U.S. futures and oil prices were higher.
Chinese stocks got a lift after the central bank lowered its 14-day reverse repurchase rate to 1.85% from 1.95% on Monday after opting to keep key lending rates unchanged last week. Markets had been anticipating a cut.
The Hang Seng in Hong Kong edged 0.1% higher to 18,281.74 and the Shanghai Composite index added 0.5% to 2,748.99.
Markets in Japan were closed on Monday for a public holiday.
Japan’s monetary policy remained in the spotlight after the Bank of Japan announced on Friday that it would keep its benchmark rate unchanged at 0.25%.
That weakened the Japanese yen, which tumbled back from last week’s peak of around 140 to the U.S. dollar. The dollar was trading at 143.98 yen on Monday.
Elsewhere, Australia’s S&P/ASX 200 lost 0.7% to 8,152.90. The Reserve Bank of Australia begins a two-day policy meeting on Monday.
South Korea’s Kospi climbed 0.3% to close at 2,602.02.
On Friday, the S&P 500 slipped 0.2% from its record, closing at 5,702.55. The Nasdaq composite fell 0.4% 17,948.32. The Dow Jones Industrial Average, meanwhile, added 0.1% to close at another record high, at 42,063.36.
Last week the Fed cut its main interest rate for the first time in more than four years, with more likely to come, ending a long run where it kept that rate at a two-decade high in hopes of slowing the U.S. economy enough to stamp out high inflation. Inflation has subsided from its peak two summers ago and Chair Jerome Powell said the Fed can focus more on keeping the job market solid and the economy out of a recession.
The Fed is still under pressure because hiring has begun to slow under the weight of higher interest rates. Some critics say the central bank waited too long to cut rates and may have damaged the economy.
Critics also say the U.S. stock market may be running too hot on the belief the Federal Reserve will pull off what seemed nearly impossible earlier: getting inflation down to 2% without creating a recession.
Last week, also, the Bank of England kept its main interest rate on hold at 5% in the wake of the Fed’s move.
This week will bring preliminary reports on U.S. business activity, the final revision for how quickly the economy grew during the spring and an update on spending by U.S. consumers.
In other dealings early Monday, U.S. benchmark crude oil rose 44 cents to $71.44 per barrel. Brent crude, the international standard, added 42 cents to $74.91 per barrel.
The euro edged lower to $1.1158 from $1.1162.
