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Asia shares mostly lower after Wall Street retreats

Asian shares

Nikkei 225 rose less than 0.1% to 38,645.63, S&P/ASX 200 gained 0.1% to 7,780.40, Kospi shed 0.9% to 2,782.43, Hang Seng shed 1.7% to 18,022.42, while the Shanghai Composite slid around 0.4% to 2,993.57

Asian shares were mostly lower Friday after a retreat on Wall Street, where a decline in Nvidia stock dragged stocks down.

Japan’s benchmark Nikkei 225 rose less than 0.1% to 38,645.63 after the government reported that the inflation rate rose for the first time in three months, to 2.5% in May, up from 2.2% in April.

We will have one more month of data before the next BoJ meeting, which will be on close watch to determine if markets are getting ahead of themselves by leaning towards a potential rate hike in September 2024, according to Yeap Jun Rong, market analyst at IG.

Australia’s S&P/ASX 200 gained 0.1% to 7,780.40. South Korea’s Kospi shed 0.9% to 2,782.43.

Hong Kong’s Hang Seng shed 1.7% to 18,022.42, while the Shanghai Composite slid around 0.4% to 2,993.57.

Thursday on Wall Street, the S&P 500 pulled back 0.3% from an all-time peak set before trading paused for Wednesday’s Juneteenth holiday. It ended at 5,473.17.

The Nasdaq composite retreated from its record, sliding 0.8% to 17,721.59. The DJIA beat the market with a gain of 0.8% to 39,134.76.

Nvidia gave up an early gain and swung to a loss of 3.5% to put at risk an eight-week winning streak. The chip has been the main beneficiary of Wall Street’s frenzy around AI technology. On Tuesday, it supplanted Microsoft to become the most valuable company in the market. Nvidia’s decline ceded the top spot back to Microsoft.

Nvidia’s chips are helping to power the move into artificial intelligence, which proponents see producing high growth in productivity and profits, and it is already up 164% this year after more than tripling last year.

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