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Asia stocks mixed as Wall Street drops

Wall Street drops

The Shanghai Composite Index advanced 0.3% to 3,594.32, Nikkei 225 shed 1% to 28,520.35, Hang Seng gained 0.1% to 26,157.11, Kospi added 0.2% to 3,013.13, S&P-ASX 200 added 0.4% to 7,444.00, while New Zealand, Singapore and Jakarta dropped

Stock markets in Asia were mixed Monday after Wall Street dropped and China tightened travel restrictions in some areas in response to Covid-19 infections.

Shanghai, Hong Kong and Sydney gained while Tokyo dropped.

Wall Street’s S&P 500 index dropped 0.1% on Friday, weighed down by losses for tech companies after a seven-day streak of gains.

China has reported only a few dozen cases, but Beijing’s response of curbing travel prompted concern that they might weigh on economic activity that already is weakening.

One may expect aggressive measures to control virus spreads, which may put a cap on growth, said Yeap Jun Rong of IG in a report.

The Shanghai Composite Index advanced 0.3% to 3,594.32 while the Nikkei 225 in Tokyo shed 1% to 28,520.35. The Hang Seng in Hong Kong gained 0.1% to 26,157.11. The Kospi in Seoul added 0.2% to 3,013.13 and Sydney’s S&P-ASX 200 added 0.4% to 7,444.00. New Zealand, Singapore and Jakarta dropped.

On Wall Street, the S&P 500 closed at 4,544.90 on Friday after losses for big tech companies after a day of choppy trading.

The Dow Jones Industrial Average (DJIA) advanced 0.2% to 35,677.02, exceeding its high reached on Aug. 15. The Nasdaq composite declined 0.8% to 15,090.20.

Some 65% of stocks in the S&P 500 finished higher, led mainly by financial and health care companies, but losses in communication and technology companies held the S&P 500 down. Chipmaker Intel tumbled 11.7% after reporting disappointing revenue.

The three major indexes post their third weekly gain after investors were encouraged by mostly solid corporate results.

Also Friday, Federal Reserve Chair Jerome Powell said industrial supply chain problems have gotten worse and will likely keep inflation elevated well into next year.

Powell also said the Fed isn’t prepared to lift its benchmark interest rate from near zero. But he suggested the economy might be ready for a rate hike next year.

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