TOKYO (AP) — Shanghai stocks rose on Tuesday as Chinese markets reopened after a weeklong holiday, but later gave up some of their early gains as Beijing detailed. Plans to revive The world’s second largest economy appeared to have collapsed.
The Shanghai Composite rose 3.1% to 3,438.16, although in Japan’s smaller market Shenzhen, the main index gained 6.2%.
Hong Kong’s Hang Seng fell 7.6% to 21,336.70 as traders weighed on Beijing’s update, selling to take profits from recent gains.
The Shanghai benchmark initially rose 10%, but retreated as officials from China’s main economic planning agency briefed reporters on several previously announced policies to address a range of problems, including a lingering slump in the property market.
“China’s markets’ rally hit a wall, sending investors into disrepair. The rally that reopened from a week off had no time to gather steam before petering out, and now the once-thrilled bulls are licking their wounds,” Stephen Innes of SBI Asset Management said in a commentary.
Elsewhere in Asia, markets were mostly underwhelming.
Tokyo’s Nikkei 225 index was down 1.3% at 38,842.75. The dollar fell to 147.89 Japanese yen from 148.18 yen. A weak yen tends to push up stock prices.
The Kospi in Seoul was down 0.4% at 2,599.96. Australia’s S&P/ASX 200 was down 0.4% at 8,176.90.
On Monday, US stocks fell after Treasury yields hit their highest levels since the summer and oil prices continued to climb.
The S&P 500 fell 1% to 5,695.94 and is still near its all-time high. Set up a week earlier. The Dow Jones industrial average fell 0.9% to 41,954.24. Its own record. The Nasdaq composite fell 1.2% to 17,923.90.
It stalled after U.S. stocks rallied to records on relief as interest rates Finally it goes back downNow the Federal Reserve has broadened its focus Keeping the economy humming Just replace Fighting high inflation. A Report on US jobs growth Friday’s release boosted confidence about the economy and the central bank hopes it can pull off the right landing.
When Treasury bonds, considered the safest potential investments, pay high interest, investors Less willingness to pay too high a price For stocks and other things that carry a big risk of losing money.
It’s hard to be attractive to income-seeking investors when the 10-year Treasury is paying a yield of 4.02%, up from 3.97% late Friday and 3.62% three weeks ago.
The yield on the two-year Treasury, which most closely tracks expectations for the central bank, rose further on Monday. It rose to 3.99% from 3.92% late on Friday.
Treasury yields may feel an upward push from the recent rise in oil prices. Crude oil prices are rising due to concerns Worse tensions in the Middle East lead to the end Obstructions in oil flow.
International benchmark Brent crude fell 1.23 to $79.70 a barrel. It rose 3.7% on Monday. Meanwhile, benchmark US crude was down $1.21 at $75.93. It also rose 3.7% on Monday.
Stocks considered the most expensive could feel the most downward pressure from higher Treasury yields, and the focus was on Big Tech stocks. They’ve driven much of the S&P 500’s returns in recent years and soared to the point that critics say they’re overvalued.
Some of Monday’s biggest weights on the S&P 500 were Apple, which fell 2.3%, Amazon fell 3% and Alphabet fell 2.4%.
The exception was Nvidia, which rose another 2.3%. It got another boost in excitement about artificial-intelligence technology after it jumped 15.8% after Super Microcomputer recently said it shipped 100,000 liquid-cooled graphics processing units.
If Treasury yields continue to rise, companies will need to deliver big profits to propel their stock prices even higher, and this week’s latest corporate earnings report signaled the start of the season.
Analysts say earnings per share rose 4.2% during the summer for S&P 500 companies, led by technology and health care companies, according to FactSet. If those analysts are correct, it will be the fifth straight quarter of growth.
In other trading early Tuesday, the euro rose to $1.0982 from $1.0977.
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AP business writer Stan Cho in New York contributed.
