Asian Shares Mixed as U.S. Stocks Hit Record Highs
BANGKOK (AP) — Asian shares were mixed on Thursday following a surge in U.S. stocks to record highs. Oil prices rose, while U.S. futures saw a slight dip. The dollar remained strong against the Japanese yen and Chinese yuan, causing concern among regulators in Tokyo and Beijing.
The yen fell to its lowest level since 1990 on Wednesday, prompting Japanese officials to emphasize the importance of exchange rate stability. Market participants are keeping a close eye on any potential intervention by Japanese policymakers in the currency market.
The dollar also strengthened against the Chinese yuan, which has been weakening in recent weeks. Analysts believe that policymakers in both China and Japan will take measures to prevent further depreciation of their currencies.
In Tokyo, the Nikkei 225 lost 1.2%, while the Kospi in Seoul edged 0.1% lower. However, Chinese markets rebounded, with Hong Kong’s Hang Seng index gaining 1.1% and the Shanghai Composite advancing 1.2%.
On Wall Street, the S&P 500 closed at a record high of 5,248.49, with the Dow Jones Industrial Average and the Nasdaq also posting gains. Merck saw a 5% increase in its stock price after receiving approval for a new treatment, while Trump Media & Technology Group shares rose by 14.2%.
Robinhood Markets climbed 3.7% after launching a new credit card for its Gold members, while Nvidia and GameStop experienced losses.
Investors are eagerly awaiting the U.S. government’s update on consumer spending, scheduled for release on Friday. The Federal Reserve’s preferred measure of inflation will also be included in the report.
Despite the recent market highs, critics warn that companies will need to show strong profit growth to justify current stock prices. The Federal Reserve is expected to start lowering interest rates later this year as inflation cools down.
Overall, the outlook for stocks remains positive, with expectations of global interest rate cuts in the near future. U.S. benchmark crude oil prices rose to $81.73 per barrel, reflecting the overall positive sentiment in the markets.
As the first quarter comes to a close, investors are optimistic about the future trajectory of the markets, despite lingering concerns about inflation and interest rates.
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