Market update: Asian shares rise, Wall Street holds steady

Most Asian shares saw gains on Wednesday, following the positive trend on Wall Street, although Tokyo’s main index saw a slight decline.

U.S. futures and oil prices remained relatively stable.

Stocks in Shanghai and Shenzhen rose after Chinese regulators introduced new market policies, while Hong Kong surrendered early gains.

Tuesday’s announcement about increased purchases of exchange-traded funds by a state investment fund seemed to lose its impact by Wednesday. Reports of a potential meeting between Chinese leader Xi Jinping and officials regarding market discussions remained unconfirmed.

The surge in Chinese shares on Tuesday had waned by Wednesday afternoon. The Hang Seng in Hong Kong dropped 0.3% to 16,096.10, while the Shanghai Composite index climbed 1.4% to 2,829.70.

Investors were offloading technology and property shares, which had surged during the brief market rally. Small-cap stocks in Shenzhen were up 1.4%, and the CSI 1000, tracking volatile “snowball derivatives,” rose 4.2%.

Elsewhere, Tokyo’s Nikkei 225 slipped 0.1% to close at 36,119.92, despite gains from companies with strong financial results, like Toyota Motor Corp., which rose 4%.

Australia’s S&P/ASX 200 advanced 0.5% to 7,615.80, while South Korea’s Kospi surged 1.4% to 2,611.02.

On Wall Street, stocks edged higher on Tuesday amid subdued bond market activity.

The S&P 500 climbed 0.2% to 4,954.23, nearing its record high.

 

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The Dow Jones Industrial Average rose 0.4% to 38,521.36, and the Nasdaq composite inched up 0.1% to 15,609.00.

Expectations of delayed interest rate cuts by the Federal Reserve have been pressuring stocks recently, despite robust economic indicators. However, strong corporate profits have been providing some support.

In corporate news, GE Healthcare Technologies surged 11.6% after reporting better-than-expected profits and revenue. Palantir Technologies jumped 30.8% following quarterly results in line with expectations. Spotify gained 3.9% after reporting solid subscriber growth.

However, FMC saw a significant decline of 11.5% after falling short of profit and revenue projections due to drought conditions in Brazil.

Earnings reports from heavyweights like CVS Health, The Walt Disney Co., and PepsiCo are still awaited.

In the bond market, the 10-year Treasury yield eased to 4.09% from 4.17%.

While delays in rate cuts may dampen stock market sentiment, strong economic data bode well for company profits.

In energy markets, U.S. crude edged up to $73.33 a barrel, while Brent crude fell to $78.57.

In currency markets, the U.S. dollar slightly strengthened against the Japanese yen and the euro.