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Traders work on the floor at the New York Stock Exchange in New York, Monday, Nov. 28, 2022.
Traders work on the floor at the New York Stock Exchange in New York, Monday, Nov. 28, 2022.
Traders work on the floor at the New York Stock Exchange in New York, Monday, Nov. 28, 2022.
Traders work on the floor at the New York Stock Exchange in New York, Monday, Nov. 28, 2022.
Christmas decorations are displayed as traders work on the floor at the New York Stock Exchange in New York, Monday, Nov. 28, 2022.
Traders work on the floor at the New York Stock Exchange in New York, Monday, Nov. 28, 2022.
Traders work on the floor at the New York Stock Exchange in New York, Monday, Nov. 28, 2022.
Traders work on the floor at the New York Stock Exchange in New York, Monday, Nov. 28, 2022.
Christmas decorations are displayed as traders work on the floor at the New York Stock Exchange in New York, Monday, Nov. 28, 2022.
Traders work on the floor at the New York Stock Exchange in New York, Monday, Nov. 28, 2022.
Currency traders watch monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Wednesday, Nov. 30, 2022. Asian shares were mostly lower Wednesday ahead of a closely watched speech by the Federal Reserve chief that may give clues about future interest rate hikes.
A currency trader passes by the screens showing the foreign exchange rates at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Wednesday, Nov. 30, 2022. Asian shares were mostly lower Wednesday ahead of a closely watched speech by the Federal Reserve chief that may give clues about future interest rate hikes.
Currency traders watch monitors near the screens showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Wednesday, Nov. 30, 2022. Asian shares were mostly lower Wednesday ahead of a closely watched speech by the Federal Reserve chief that may give clues about future interest rate hikes.
TOKYO (AP) — Asian shares were mostly lower Wednesday ahead of a closely watched speech by the Federal Reserve chief that may give clues about future interest rate hikes.
Investors were also eyeing developments in China, where protests have erupted over the “zero-COVID” strategy that has confined millions of people to their homes, sometimes for months. Shares fell in Tokyo but were higher in Sydney, Seoul, Hong Kong and Shanghai. Oil prices rose.
China has eased some controls after demonstrations in at least eight mainland cities and Hong Kong. It’s unclear if protests will start up again after authorities detained an unknown number of people and stepped up surveillance.
Renewed restrictions on businesses and other activity have hit manufacturing, with an official survey announced Wednesday showing the purchasing managers index falling to 48.0 in November from 49.2 the month before. The index is on a scale of 0 to 100 where readings 50 and above show expansion.
“A further fall in the new orders and new export orders indices suggests this was largely driven by weakening domestic and foreign demand,” Capital Economics said in a report. “Todays surveys suggest that intensified virus disruption has delivered another blow to the economy this month.”
Japan’s benchmark Nikkei 225 lost 0.6% in early trading to 27,858.16. Australia’s S&P/ASX 200 edged up nearly 0.2% to 7,265.60. South Korea’s Kospi rose 0.5% to 2,444.98. Hong Kong’s Hang Seng added 0.3% to 18,257.80, while the Shanghai Composite edged up 0.2% to 3,156.71.
“Due to a more reflective approach to the recent zero-COVID measures, Chinese stocks have taken substantial leaps and bounds this week. However, that optimism is giving way to hawkish contemplation as traders twiddle their thumbs awaiting a speech from Federal Reserve Chair Jerome Powell later Wednesday,” said Stephen Innes, managing partner at SPI Asset Management.
Investors have been hoping that the Fed could ease up on its rate increases and are closely watching the latest data on inflation, consumer spending and the employment market. They’ll be looking for any signs of a shift in policy when Powell speaks at the Brookings Institution about the outlook for the U.S. economy and the labor market on Wednesday.
The Fed’s benchmark rate currently stands at 3.75% to 4%, up from close to zero in March.
Wall Street capped an unsteady day of trading with an uneven finish, as gains by energy companies were offset by losses in technology and other sectors. The S&P 500 slipped 0.2% to 3,957.63, its third straight drop. The tech-heavy Nasdaq composite fell 0.6% to 10,983.78, while the Dow Jones Industrial Average ended just barely in the green, at 33,852.53. The Russell 2000 index of small company stocks rose 0.3% to 1,836.55.
“This is a market that’s waiting for more information, particularly from Powell,” said Quincy Krosby, chief equity strategist for LPL Financial.
Technology stocks were the biggest drag on the broader market. Apple fell 2.1%. Financial and industrial stocks were among the gainers. American Express added 2% and United Parcel Service rose 2.8%. Energy stocks rose as U.S. crude oil prices climbed 1.2%. Hess rose 1.8%.
Railroad operators rose amid hopes that a rail strike can be averted if Congress votes to impose a deal that unions agreed to in September. Union Pacific rose 2% and CSX gained 1.8%.
The Conference Board reported on Tuesday that consumer confidence fell slightly in November from October, but remains relatively strong. Consumer spending has been solid area of the economy, along with employment.
The U.S. government will be releasing several reports about the labor market this week. A report about job openings and labor turnover for October will be released Wednesday, followed by a weekly unemployment claims report Thursday. The closely watched monthly report on the job market will be released on Friday.
In energy trading, benchmark U.S. crude gained 81 cents to $79.01 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, added 91 cents to $85.16 a barrel.
In currency trading, the U.S. dollar inched up to 138.76 Japanese yen from 138.65 yen. The euro cost $1.0350, up from $1.0331.
AP Business Writers Damian J. Troise and Alex Veiga contributed to this report.
Yuri Kageyama is on Twitter https://twitter.com/yurikageyama
Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
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The United States isn’t seeking to sever economic ties with China — even as it takes steps to protect America’s technological and military prowess from Beijing. That’s according to U.S. Commerce Secretary Gina Raimondo. She spoke to reporters in advance of a speech Wednesday on the Biden administration’s China policy. Relations between the world’s two biggest economies have chilled over the last decade, partly because the communist government in Beijing has cracked down on dissent in Hong Kong and on Muslims in the northwestern region of Xinjiang. The Biden administration has kept President Donald Trump’s tariffs on China and has stepped up a campaign to keep the Chinese from acquiring sensitive technology that could speed its military buildup.
A former elections manager who prosecutors say assisted in a security breach of voting equipment in a Colorado county has pleaded guilty under a plea agreement that requires her to testify against her former boss. Sandra Brown entered her pleas Wednesday. She is one of two employees accused of helping Mesa County Clerk Tina Peters allow a copy of a hard drive to be made during an update of election equipment last year in search of proof of the conspiracy theories spun by former President Donald Trump. She won’t be sentenced until right after she testifies at Peters’ trial next year.
The Democratic San Francisco Board of Supervisors voted to allow police to use potentially lethal, remote-controlled robots in emergency situations. The vote Tuesday was 8 to 3. Civil rights advocates opposed the proposal, saying it would lead to further militarization of police. The San Francisco Police Department said it would like the option to deploy robots equipped with explosive charges to disable suspects when lives are at stake. The San Francisco Board of Supervisors is divided on support for law enforcement. A new state law requires police and sheriffs departments to inventory its military grade equipment and seek approval for their use.
North Korean leader Kim Jong Un’s daughter made a public appearance again, this time with missile scientists and more honorific titles as her father’s “most beloved” or “precious” child. She’s only about 10, but her new, bold photos released Sunday by state media are deepening the debate over whether she’s being primed as a successor. She took group photos with scientists and others involved in what the reports called the test-launch of its Hwasong-17 intercontinental ballistic missile earlier this month. South Korea’s spy service said last week that she is Kim’s second child, Ju Ae, who is approximately 10 years old.
Tennessee officials have announced plans to invest $3.2 billion to develop a cathode materials plant for electric vehicle batteries. The manufacturing facility will be built in Clarksville, Tennessee and create more than 850 jobs, according to a memorandum of understanding signed by the state of Tennessee and South Korea-based LG Chem. Construction will begin next year with the goal to start mass production in 2025. Once operational, the goal is to produce 120,000 tons of cathode battery materials annually — or enough to power 1.2 million electric vehicle batteries.
The U.S. is banning the sale of communications equipment made by Chinese companies Huawei and ZTE and restricting the use of some China-made video surveillance systems, citing an “unacceptable risk” to national security. The five-member Federal Communications Commission said Friday it has voted unanimously to adopt new rules that will block the importation or sale of certain technology products that pose security risks. It’s the latest in a years-long escalation of U.S. restrictions of Chinese technology that began with President Donald Trump and has continued under President Joe Biden’s administration.
Stocks wobbled to a mixed close on Wall Street, but every major index notched weekly gains in a holiday-shortened week. The S&P 500 edged lower Friday. The Dow Jones Industrial Average rose and the Nasdaq fell. Technology stocks were the biggest drags on the broader market. Markets were closed on Thursday for the Thanksgiving holiday and closed at 1 p.m. Eastern Friday. Long-term bond yields were relatively stable and crude oil prices fell. Global shares were mixed amid worries about China’s lockdowns and restrictions to curb the spread of coronavirus infections.
President Joe Biden is telling Americans he is a “pro-union” president, just a day after he sided with business leaders in asking Congress to pass legislation to stave off a crippling rail strike. He toured a technology plant in Michigan on Tuesday to highlight a $300 million expansion. The South Korean company SK Siltron is expected to quadruple its production in the coming years at the plant. Biden said, as he often does, that he’s been pro-union his entire career. He said he spoke with the plant owners about how American workers were “the best workers in the world, you’re the most qualified workers in the world.”
Mexico’s domestic airline industry is in shambles, plagued by safety problems, a downgrade of Mexico’s safety rating, and vandalism. This week alone, passengers missed connections because thieves had cut the fiber optic cables leading into the Mexico City airport, forcing immigration authorities to return to paper forms. The internet outage came almost one month after aviation and transportation authorities were forced to suspend routine medical, physical and licensing exams because the government’s computer systems were hacked. And on May 7, there was a near-miss between two planes at the airport.
Cryptocurrency lender BlockFi filed for Chapter 11 bankruptcy protection Monday, the latest casualty of the collapse of crypto exchange FTX. New Jersey-based BlockFi had been struggling for much of this year, but was given a lifeline this summer in the form of an FTX line of credit. FTX’s own bankruptcy, however, all but sealed BlockFi’s financial fate. BlockFi suspended withdrawals after FTX’s failure, and it had hired bankruptcy specialists in recent days. BlockFi was one of several crypto currency lenders to pop up in recent years. The company gave loans to customers using their crypto assets as collateral.
Traders work on the floor at the New York Stock Exchange in New York, Monday, Nov. 28, 2022.
Traders work on the floor at the New York Stock Exchange in New York, Monday, Nov. 28, 2022.
Traders work on the floor at the New York Stock Exchange in New York, Monday, Nov. 28, 2022.
Traders work on the floor at the New York Stock Exchange in New York, Monday, Nov. 28, 2022.
Christmas decorations are displayed as traders work on the floor at the New York Stock Exchange in New York, Monday, Nov. 28, 2022.
Traders work on the floor at the New York Stock Exchange in New York, Monday, Nov. 28, 2022.
Traders work on the floor at the New York Stock Exchange in New York, Monday, Nov. 28, 2022.
Traders work on the floor at the New York Stock Exchange in New York, Monday, Nov. 28, 2022.
Christmas decorations are displayed as traders work on the floor at the New York Stock Exchange in New York, Monday, Nov. 28, 2022.
Traders work on the floor at the New York Stock Exchange in New York, Monday, Nov. 28, 2022.
Currency traders watch monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Wednesday, Nov. 30, 2022. Asian shares were mostly lower Wednesday ahead of a closely watched speech by the Federal Reserve chief that may give clues about future interest rate hikes.
A currency trader passes by the screens showing the foreign exchange rates at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Wednesday, Nov. 30, 2022. Asian shares were mostly lower Wednesday ahead of a closely watched speech by the Federal Reserve chief that may give clues about future interest rate hikes.
Currency traders watch monitors near the screens showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Wednesday, Nov. 30, 2022. Asian shares were mostly lower Wednesday ahead of a closely watched speech by the Federal Reserve chief that may give clues about future interest rate hikes.
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