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Asian markets are falling after gloomy U.S. GDP data



Asian stocks fell on Friday as reports show American layoffs remain high after the U.S. economy contracted nearly 33% a year in the spring, the worst quarter.

Profit reports show how well companies are coping with the downturn from the coronavirus pandemic. Some technology companies have not achieved this trend and are showing positive results. But many companies are hurting.

Japan’s Nikkei 225 NIK
-2.24%
fell by 2.3% and the Hong Kong Hang Seng index HSI,
+ 0.08 percent
increased by 0.2%. Shanghai composite SHCOMP,
-0.01 percent
was almost flat, and the smaller lid Shenzhen Composite 399106
+ 0.45 percent
gained 0.3 percent. South Korea’s Kospi 180721
-0.16 percent
fell 0.2% in Taiwan’s Taiex Y9999,
-0.03 percent.
decreased by 0.3% and the Australian S & P / ASX 200 XJO
-1.77 percent
fell 1.6%. Markets in Singapore, Malaysia and Indonesia have been closed for holidays.

August is usually a gloomy stock month, noted Stephen Innes of AxiTrader Corp.

“Stock markets seem to be tremendously adjusting as far as we can go back to August. The retreat phase, commonly referred to as the summer wave, ”commented Innes.

On one positive signal, China reported an increase in its manufacturing activity in July and an increase in export orders, despite weak demand in the US and Europe. The monthly survey, released on Friday, was another sign that the world’s largest economy is slowly recovering from the coronavirus pandemic.

Meetings of the various central banks are on the agenda for next week.

“Second-quarter GDP in Indonesia and the Philippines will also be examined to highlight the impact of the pandemic,” said Bernard Aw, chief economist at IHS Markit in Singapore.

The Japanese government announced at the end of Thursday that the country’s economy for the fiscal year ending 2021. In March, it may fall 4.5%. It predicts that growth will pick up again in the next fiscal year.

Among the Japanese companies that report next week’s earnings are Sony Corp. 6758 “,
-0.86 percent
, “Honda Motor Co. 7267 “,
-4.35 percent
, Toyota Motor Corp. 7203,
-2.45 percent
and Nintendo Co. 7203 “,
-2.45 percent.

Some companies perform better than others.

Japanese media reports say Toyota intends to once again become the world’s leading carmaker, overtaking Volkswagen, now the world’s largest manufacturer of vehicles. Toyota says sales have already recovered in markets such as China, which is recovering from an early COVID-19 outbreak.

At night, the US reported that in April-June, when the pandemic ended, the economy contracted at a record rate of 32.9%.

News of a deep and sudden collapse came as the acceleration of outbreaks forced businesses in many areas to close for the second time. The government’s estimate of a decline in gross domestic product in the second quarter is not comparable, as records began in 1947. The previous worst quarterly contraction – 10 percent – Less than a third of what was reported on Thursday – occurred in 1958. During the Eisenhower administration. .

The bad news was not a big surprise, and the Wall Street S&P 500 SPX
-0.37 percent
fell 0.4% to 3,246.22. Nearly three of the four index stocks fell. Among the hardest hit were oil producers, banks and other companies whose economies need it most to avoid a recession.

Dow Jones industry average DJIA,
-0.85 percent.
lost 0.9% to 26,313.65.

Stocks seemed to fall much more sharply ahead of time, but higher-than-expected profits reported by UPS and other companies helped the market reduce losses. Also stable are the prices of Amazon and other large technology-focused stocks that have reported their results after the day’s trading.

Nasdaq helped their NPSDA predict their reports, which turned out to be even better than Wall Street expected,
+ 0.42 percent
completely erases its early loss and rose 0.4% to 10,587.81.

Overall, however, wage reports were much lower than a year ago, before the pandemic began. According to FactSet, the major S&P 500 companies plan to decline by almost 38% in the second quarter from a year earlier.

Shortly after that day’s trade, Amazon AMZN
+ 0.60 percent
, Apple AAPL,
+ 1.21 percent
, Facebook FB,
+ 0.51 percent
and Google’s parent company, Alphabet
+ 0.97%
GOOG,
+ 0.62 percent
all reported higher-than-expected earnings for the last quarter than Wall Street forecast. Investors continue to flock to them in the hope that they will thrive as the pandemic accelerates the transition to online commerce.

Comparative US raw car CLU20,
+ 0.50%
in e-commerce on the New York Mercantile Exchange, it earned 14 cents to $ 40.06 a barrel. Brent raw material BRNU20,
+ 0.46 percent
, the international standard, rose 37 cents to $ 43.31 a barrel.

Dollar USDJPY,
-0.43 percent.
fell to 104.22 Japanese Yen from 104.73 Yen.


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