Asian shares were mixed on Wednesday after U.S. benchmarks hit new records following the latest signs that the U.S. economy may slow without falling into recession. U.S. futures were mixed and oil prices were little changed. Tokyo’s Nikkei 225 index rose 0.2% to 38,575.54 as Japan’s trade data for May showed exports rose 13.5% from a year earlier and imports rose 9.5% on higher prices and a weaker yen against the U.S. dollar.
Minutes from the Bank of Japan’s most recent monetary policy meeting revealed discussions among policymakers about whether a weaker yen could push up inflation further. Governor Kazuo Ueda indicated his intention to raise key interest rates in the coming months depending on available economic indicators. “The Nikkei’s move reflects a lot of indecision as the indexes have been in a broad correction phase so far,” IG Asia said in a commentary. Hong Kong’s Hang Seng Index rose 2% to 18,264.51, while the Shanghai Composite Index fell 0.3% to 3,020.03 after the head of China’s securities regulator said at a Shanghai financial forum that authorities would supervise all financial activities to prevent a possible financial crisis. Risk. In Sydney, the S&P/ASX 200 fell 0.2% to 7,764.30. South Korea’s Kospi rose 1% to 2,792.14. Taiwan’s THAI-X rose 1.8% and Bangkok’s SET fell 0.1%. On Tuesday, the S&P 500 rose 0.3% to 5,487.03, its 31st record this year. The Nasdaq Composite rose less than 0.1% to 17,862.23.
The Dow Jones Industrial Average rose 0.2% to 38,834.86. Nvidia was the star of the show again, rising 3.5% and being the biggest driver of the S&P 500. The company has once again boosted its total market value to more than $3 trillion. Nvidia’s chips have helped develop artificial intelligence, which advocates hope will change the world as much as, or even more than, the Internet. And demand for Nvidia’s chips is astoundingly high. Nvidia’s revenue is tripling every quarter, and profits are soaring at an even more astounding pace.
Its stock price is up nearly 174% since the beginning of the year, and Nvidia alone accounted for nearly a third of the entire S&P 500’s gains in the year through May. Of course, the danger of a handful of superstars being responsible for most of the U.S. stock market’s record gains is that the market becomes more volatile. If more stocks are involved, that could be a sign of a healthier market. Retail sales rose 0.1% in May, slower than economists had expected, the Commerce Department said. April sales were revised down to a 0.2% decline from unchanged. Sales rose 0.6% in March and 0.9% in February. The decline comes after a 1.1% decline in January, hurt by bad weather.
The weaker-than-expected data could be a warning sign that household spending, a key driver of the U.S. economy, is sagging. Inflation has slowed from its peak but remains high, with lower-income households in particular struggling to keep up with rising prices. Still, a Bank of America survey of global fund managers found they have been the most bullish on stocks since fall 2021, with relatively little money stashed in cash and more allocated to stocks. Fewer managers are predicting a “hard landing” in which the economy falls into a deep recession. Elsewhere, the price of U.S. benchmark crude oil was unchanged at $80.71 a barrel in electronic trading on the New York Mercantile Exchange early Wednesday. Brent crude rose 2 cents to $85.35 a barrel. The dollar rose to 157.87 yen from 156.87 yen. The euro fell to $1.0737 from $1.0740.
