Current:Home > MarketsStock market today: Asian markets sink, with Hong Kong down almost 3% on selling of property stocks-LoTradeCoin
Stock market today: Asian markets sink, with Hong Kong down almost 3% on selling of property stocks
View Date:2024-12-24 07:41:28
BANGKOK (AP) — Asian markets declined Tuesday following a mixed session on Wall Street, where buying was pressured by rising bond yields.
U.S. futures fell and oil prices also were lower.
Hong Kong’s Hang Seng dropped more than 3% as investors unloaded property shares. However, China Evergrande was up nearly 16%, resuming trading after its shares were suspended last week as the troubled real estate developer announced that its chairman was under investigation. Earlier in the session it’s shares soared more than 60%.
By midday, the Hang Seng was down 3% at 17,278.37. Markets in mainland China and South Korea remained closed for holidays.
Tokyo’s Nikkei 225 index fell 1.7% to 31,231.37, while Australia’s S&P/ASX 200 skidded 1.3% to 6,943.40. India’s Sensex declined 0.6% to 65,462.02.
Bangkok’s SET was down 1.4% and Taiwan’s Taiex fell 0.6%.
On Monday, the S&P 500 ended little changed at 4,288.39, while the Dow Jones Industrial Average slipped 0.2% to 33,433.35. The Nasdaq composite rose 0.7% to 13,307.77.
Oil-and-gas stocks sank as crude prices gave back some of the sharp gains made since the summer.
Early Tuesday, U.S. benchmark crude oil was down 71 cents at $88.11 per barrel in electronic trading on the New York Mercantile Exchange.
Prices have pulled back after charging higher from $70 in the summer. A barrel of U.S. crude fell $1.97 on Monday to settle at $88.82.
Brent crude, the international standard, gave up 94 cents to $89.76 per barrel. On Monday, Brent lost $1.49 to settle at $90.71 a barrel.
Lower oil prices weighed on energy stocks. Exxon Mobil fell 1.7% and Chevron lost 1.2%.
Stocks have given back 40% of their strong gains for the year since the end of July. The main reason is a growing recognition that high interest rates will persist for a while as the Federal Reserve tries to knock high inflation lower.
That in turn has pushed Treasury yields to their highest levels in more than a decade.
The yield on the 10-year Treasury rose Monday to 4.67% from 4.58% late Friday. It’s near its highest level since 2007. High yields send investors toward bonds that are paying much more than in the past, which pulls dollars away from stocks and undercuts their prices.
Any relief rally from a compromise spending bill approved by Congress over the weekend, which has staved off a U.S. government shutdown for another few weeks, appeared muted under pressure from heavy selling of bonds, which pushed yields higher.
“So, investors were on the fence, carefully considering the relationship between economic growth and interest rates and what actions the Federal Reserve might take in response to these factors,” Stephen Innes of SPI Asset Management said in a commentary.
Stocks that pay high dividends with relatively steady businesses are squeezed because investors are more likely to switch between stocks and bonds. That puts a harsh spotlight on utility companies. PG&E dropped 5.6%, and Dominion Energy sank 5.3% for some of the sharpest losses in the S&P 500.
High interest rates also make borrowing more expensive for all kinds of companies, which can pressure their profits. High interest rates are designed to slow the overall economy and can cause disruptions in far-flung, unexpected corners of the economy.
The overall U.S. economy has so far been holding up, defying predictions that it would have fallen into a recession by now.
SmileDirectClub plunged 61.2% to 16 cents after the company that helps people straighten their teeth filed for Chapter 11 bankruptcy protection.
In currency dealings Tuesday, the dollar rose to 149.93 Japanese yen from 149.86 yen. The euro declined to $1.0462 from $1.0480.
The dollar has gained in value against many other currencies as U.S. interest rates have risen faster than those in many other countries. Higher interest rates can mean higher yields for investments.
veryGood! (8)
Related
- ONA Community Introduce
- Former Nashville officer arrested after allegedly participating in an adult video while on duty
- Kansas City Chiefs' BJ Thompson Makes Surprise Appearance at Super Bowl Ring Ceremony After Health Scare
- Former Nashville officer arrested after allegedly participating in an adult video while on duty
- Pistons' Tim Hardaway Jr. leaves in wheelchair after banging head on court
- Supreme Court strikes down Trump-era ban on bump stocks for firearms
- Stanley Cup Final Game 3 recap, winners, losers as Panthers take 3-0 lead on Oilers
- Stanley Cup Final Game 3 recap, winners, losers as Panthers take 3-0 lead on Oilers
- 'Serial swatter': 18-year-old pleads guilty to making nearly 400 bomb threats, mass shooting calls
- Rhode Island lawmakers approve $13.9 billion budget plan, slew of other bills
Ranking
- Mike Tyson has lived a wild life. These 10 big moments have defined his career
- U.S. customs officer accused of letting drug-filled cars enter from Mexico, spending bribe money on gifts, strip clubs
- RFK Jr. offers foreign policy views on Ukraine, Israel, vows to halve military spending
- Little Big Town on celebrating 25 years of harmony with upcoming tour and Greatest Hits album
- What Republicans are saying about Matt Gaetz’s nomination for attorney general
- New coral disease forecast tool shows high risks of summer outbreaks in Hawaii
- Deadliest Catch Star Nick Mavar Dead at 59 in Medical Emergency
- Biden says he won't commute any sentence Hunter gets: I abide by the jury decision
Recommendation
-
Wicked's Ethan Slater Shares How Ariana Grande and Cynthia Erivo Set the Tone on Set
-
Brittany Mahomes Sizzles in Red-Hot Fringe Gown at Super Bowl Ring Ceremony
-
How Taylor Swift Supported Travis Kelce & Kansas City Chiefs During Super Bowl Ring Ceremony
-
The twisty, titillating, controversial history of gay sex drug poppers
-
Man who stole and laundered roughly $1B in bitcoin is sentenced to 5 years in prison
-
Rhode Island lawmakers approve $13.9 billion budget plan, slew of other bills
-
Amazon reveals the best books of 2024 (so far): The No. 1 pick 'transcends its own genre'
-
U.S. customs officer accused of letting drug-filled cars enter from Mexico, spending bribe money on gifts, strip clubs