While benchmarks dropped in Tokyo, Shanghai, and Taiwan, they rose in Sydney. For holidays, markets in South Korea and Hong Kong were shut down.
As expected, the Bank of Japan maintained its supportive monetary policy.
Investors are waiting for the Federal Reserve’s latest economic assessment and will be keeping an eye out on Evergrande, a Chinese developer that is having difficulty paying its debts.
The Wall Street buying frenzy of late afternoon faded in Tuesday’s closing minutes of trading, leaving major stock indexes mixed. The S&P 500 was down 0.1% and the Dow Jones Industrial Average dropped 0.1%.
Tokyo’s Nikkei225 index fell 0.6% to 29,665.42, while Shanghai Composite index dropped 0.8% to 3,585.24. The S&P/ASX 200 index in Australia gained 0.5% to 7,310.10. The shares fell 2.4% in Taiwan, and also decreased in Singapore. However, benchmarks rose in Indonesian and Malaysia.
The 10-year Treasury yield edged up to 1.33%, up from 1.32% on Tuesday.
The Federal Reserve will send out its strongest signal yet this week to say it will begin reining in ultra-low-interest rates later this year. This is the first step towards removing the incredible support it has given the economy since the pandemic 18 months ago.
Wednesday’s Fed policy meeting could be the beginning of a November pullback announcement.
Global investors are also watching closely as Evergrande China’s largest real estate developer faces a possible default on tens to billions of dollars in debt. This is fueling fears about wider shock waves for China’s financial system.
China’s regulators are yet to comment on Evergrande Group. Economists believe they will intervene if Evergrande Group and its lenders are unable to agree on how to manage its debts. Banks and bondholders will suffer losses if an official resolution is reached.
After Monday’s selloff, Tuesday saw nerves seem to be steady.
S&P 500 dropped 3.54 points at 4,354.19 while Dow Jones Industrial Average fell 50.63 points at 33,919.84. The Nasdaq composite rose 0.2%, to 14,746.49.
Stocks of small companies also saw gains. The Russell 2000 index rose 0.2%, to 2,186.18.
Tuesday’s gainers were led by health care stocks. Johnson & Johnson gained 0.4% on Tuesday after reporting that a booster for its one-shot coronavirus vaccine gives a stronger immune response several months after the first dose.
Many companies saw solid growth after providing investors with encouraging financial updates. Uber, a ride-hailing company, saw a 11.5% jump after it told investors that it could report an adjusted profit in the current quarter. Herc Holdings, a rental company for equipment, rose 6.7% after a solid long term growth forecast.
Many companies were affected by supply chain issues that have affected a wide range of industries. Lennar, a homebuilder, fell 0.5% due to supply chain problems. Home deliveries in the third quarter were below analysts’ expectations.
Universal Music saw a 35.7% increase in its debut on Amsterdam’s stock exchange.
U.S. benchmark crude oil gained 54 cents to $71.03 a barrel in other electronic trading. On Tuesday, it gained 35 cents to $70.49.
Brent crude oil, which is the international standard for pricing, increased 42 cents per barrel to $74.78.
From 109.23 yen on Tuesday, the U.S. dollar rose 109.42 Japanese Yuan to 109.42 yen. The euro was steady at $1.1726.
