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BEIJING (AP) – Asian stocks were mostly lower on Monday after Wall Street’s massive stock rally last week faltered.
Japan’s Nikkei 225 index fell 2.5% to 38,704.10. The government released revised figures showing economic growth in the final quarter of the year was 0.1%, better than the previously reported -0.1% but lower than expected.
This means that even though the economy is expanding at a snail’s pace, it is not in a technical recession.
Hong Kong’s Hang Seng Index rose 0.9% to 16,498.79, while the Shanghai Composite Index fell 0.1% to 3,043.67.
China’s National People’s Congress ends late Monday, but no major changes in policy are expected. The largely ceremonial group supports decisions made by the ruling Communist Party’s top leadership.
Elsewhere in Asia, South Korea’s Kospi fell 0.2% to 2,670.75 and Australia’s S&P/ASX 200 fell 1.5% to 7,727.60.
On Friday, the S&P 500 closed at 5,123.69, down 0.7% from its previous high. The Dow fell 0.2% to 38.722.69, and the Nasdaq fell 1.2% to 16,085.11.
Stock prices initially rose Various data on the US job market It raised expectations that interest rate easing would be achieved within the year.It then turned into a loss. Nvidia is one of the most influential stocks.suffered a rare stumbling block after an astonishing surge that critics said was overdone.
Friday’s decline marked the third time in the past 19 years that the S&P 500 index had a rare down week.
Employers hired more workers than expected last month, but workers’ wages rose less than expected, according to employment data. He also said that employment growth in January was not as strong as initially thought.
The economy as a whole is in a delicate situation, and moderate growth is necessary to avoid a recession while also not increasing inflationary pressures.
The ultimate goal is for prices to cool enough to persuade the Federal Reserve to lower its key interest rate from its highest level since 2001, easing pressure on the financial system and economy.
Lower interest rates can encourage people and businesses to borrow, strengthening the economy. This causes the prices of stocks and other investments to rise.
Jerome Powell Fed Chairman He said the central bank was “not far off” from cutting rates and just needed more data to confirm that inflation was indeed falling to its 2% target.
Wall Street’s hope is that a remarkably resilient economy will spur corporate profit growth.
On Friday, gunmaker Smith & Wesson Brands soared 29.4% after reporting better-than-expected profits for its latest quarter. The company says its shipments have grown faster than the overall firearms market.
However, Nvidia was the major stock in the spotlight, falling 5.5% on its worst day since May. It’s a rare jump for the company’s stock, which has soared nearly 77% this year after more than tripling last year.
Nvidia has grown to become the third largest stock in the United States, giving it a much larger weight in the S&P 500 than nearly every other stock. This energized Wall Street and pushed it higher, but it also sparked a backlash, especially when critics said stocks caught up in the market frenzy around artificial intelligence were rising too quickly. remain vulnerable to
Broadcom also fell despite reporting better-than-expected financial results. Shares fell 7% after the company’s sales forecast for this year was slightly lower than analysts expected.
Costco Wholesale’s sales fell 7.6% in its latest quarter, falling short of expectations.
In other trading early Monday, benchmark U.S. crude oil fell 70 cents to $77.31 a barrel in electronic trading on the New York Mercantile Exchange. It fell 92 cents to $78.01 a barrel on Friday.
Brent crude, the international standard crude, fell 68 cents to $81.40 per barrel.
The dollar fell to 147.02 yen from 147.07 yen. The euro was unchanged at $1.0941.
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