Inflation Related Changes in the Asian Markets, US Data Awaited

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Amid the pandemic, the global share market has witnessed several ups and downs Asian shares fell Thursday, as investors watched for signs of inflation and awaited U.S. economic data expected later in the day.

Details on the Asian Market

The Japanese government is expected to extend its “state of emergency” in some areas including Tokyo past May 31^st, in an effort to curb COVID-19 cases. Public concern has grown with the Olympics due to begin in Tokyo on July 23. Surveys show a majority of residents want the games canceled or postponed.Japan’s benchmark Nikkei 225 shed 0.8% in early trading to 28,409.41. South Korea’s Kospi dipped 0.7% to 3,146.54. Australia’s S&P/ASX 200 inched down less than 0.1% to 7,089.90. Hong Kong’s Hang Seng slipped 0.5% to 29,019.84. The Shanghai Composite index edged 0.1% to 3,597.85.

“There are push-backs all round right now, and they are going to buffet markets, largely because they aren’t all pushing in the same direction,” RaboResearch said in a report. Technology shares were under pressure, though Chinese mobile phone maker Xiaomi rose 4% after it confirmed that the U.S. had removed it from a blacklist for Chinese tech companies.

US Market Data

On Wall Street, the S&P 500 ended just under 0.2% higher after wavering between small gains and losses. Retailers and other companies that rely on consumer spending made solid gains. Communication and financial stocks also helped lift the market. The gains were tempered by declines in health care, technology and other stocks.

The S&P 500 rose 7.86 points to 4,195.99. The Dow Jones Industrial Average, which turned 125 years old Wednesday, gained less than 0.1% to 34,323.05. The Nasdaq added 0.6% to 13,738. The Russell 2000 index of smaller companies gained 2% to 2,249.27.The S&P 500 hit an all-time high on May 7th, but then fell for two straight weeks heading into this week. The index is on track for a gain this week of about 1%.The next key economic update is set for Thursday, when the Commerce Department releases its latest GDP report for the first quarter. Economists are expecting a huge rebound in 2021 and results from the beginning of the year will give Wall Street a clearer picture moving forward.