Asian Shares Mixed: Japan Recovers, US Markets Calm - AP News

Tokyo, Aug 13 (AP) Asian shares were trading mixed Tuesday, as the Tokyo benchmark bounced back and calmed from last week's plunge.

Japan's benchmark Nikkei 225 gained 2.2 per cent in morning trading to 35,782.68, after jumping more than 1,000 points at one point. Australia's S&P/ASX 200 rose 0.1 per cent to 7,821.60.

South Korea's Kospi lost 0.3 per cent to 2,610.17. Hong Kong's Hang Seng was little changed, inching down less than 0.1 per cent to 17,107.52, while the Shanghai Composite was up less than 0.1 per cent at 2,859.62.

In Tokyo, computer chip issues were in demand, with Tokyo Electron surging 5.4 per cent, echoing the strong performance of technology-related issues on Wall Street.

Investors also seemed to be cheered by how the recently volatile yen value appeared to be calming. Although a cheap yen is a boon for Japan's major exporters, like Toyota Motor Corp., by boosting the value of overseas earnings when translated into yen, a cheap currency gradually erodes away at a nation's purchasing power.

The US dollar rose to 147.30 Japanese yen from 147.17 yen. The euro cost USD 1.0936, little changed from USD 1.0935.

“Global geopolitical developments, such as tensions in East Asia, ongoing conflicts in Eastern Europe, or disruptions in global trade, could further impact the dollar's performance,” said Luca Santos, currency analyst at ACY Securities.

Last week, Japanese stocks underwent their worst plunge since the Black Monday crash of 1987. A comment from a senior Bank of Japan official, stressing the importance of stability, helped calm markets somewhat.

Uncertainty around the world, such as the situation in Ukraine and the Middle East, as well as worries about China, are adding to worries that tend to set off market swings.

Wall Street drifted through a quiet day of trading Monday, with the S&P 500 ending little changed. The Dow Jones Industrial Average slipped 140 points, or 0.4 per cent, and the Nasdaq composite rose 0.2 per cent.

Investors have their eyes on various data expected later this week, including reports on US inflation and retail sales. The best-case scenario would be signs of a slowdown in inflation and strong sales.

Such data influences decisions by the world's central banks, including the Federal Reserve, which kept its main interest rate at a two-decade high trying to tackle what's known as “stagflation.” The Fed could ease rates, giving the US economy an upward push but that also threatens to worsen inflation.

Japan's central bank, in contrast, is trying to ignite inflation in a long deflation-stuck economy by gradually raising interest rates after years of zero or minus rates.

Japan's April-June real gross domestic product, or GDP, which measures the value of a nation's products and services, will be released Wednesday.

The yield on the 10-year Treasury slipped to 3.90 per cent from 3.94 per cent late Friday. The two-year Treasury yield, which more closely tracks expectations for Fed action, fell to 4.01 per cent from 4.06 per cent.

On Wall Street, while most stocks weakened, a 4.1 per cent jump for Nvidia helped offset many of those losses. Because it's one of the largest US stocks by value, Nvidia's movements carry extra weight on the S&P 500 and other indexes.

All told, the S&P 500 rose by less than a quarter of a point, 0.23, to 5,344.39. The Dow dropped 140.53 to 39,357.01, and the Nasdaq composite gained 35.31 to 16,780.61.

Several major US companies report their latest earnings results later in the week, including Walmart and Home Depot. Most big US companies have been reporting better profits than analysts expected.

In energy trading, benchmark US crude fell 54 cents to USD 79.52 a barrel. Brent crude, the international standard, declined 53 cents to USD 81.77 a barrel.