TOKYO — Asian shares were mixed on Tuesday as Tokyo’s benchmark recovered and settled after last week’s decline.
Japan’s benchmark Nikkei 225 rose 3.2% to 36,156.47 in midday trading. Australia’s S&The P/ASX 200 rose almost 0.2% to 7,826.80. South Korea’s Kospi was little changed, rising less than 0.1% to 2,618.36. Hong Kong’s Hang Seng fell less than 0.1% to 17,104.82, while the Shanghai Composite lost 0.4% to 2,846.40.
In Tokyo, there was demand for computer chips, with Tokyo Electron rising 6.2%, reflecting strong performance in technology-related issuance on Wall Street.
Investors also seemed to be cheered by how the recently volatile yen value appeared to be calming. While a cheap yen is a boon to Japan’s big exporters, such as Toyota Motor Corp., by boosting the value of overseas earnings when converted into yen, a cheap currency gradually erodes a country’s purchasing power.
The US dollar rose to 147.66 Japanese yen from 147.17 yen. The euro was worth $1.0939, little changed from $1.0935.
“Global geopolitical developments, such as tensions in East Asia, ongoing conflicts in Eastern Europe or disruptions in global trade, could further impact the dollar’s performance,” said Luca Santos, currency analyst at ACY Securities.
Last week, Japanese stocks suffered their biggest decline since the Black Monday crash of 1987. A comment from a senior Bank of Japan official stressing the importance of stability helped calm markets somewhat.
Uncertainty around the world, such as the situation in Ukraine and the Middle East, and concerns about China, add to the worries that often cause market fluctuations.
Wall Street had a quiet trading day on Monday, with the S&The P 500 closed little changed. The Dow Jones Industrial Average fell 140 points, or 0.4%, and the Nasdaq Composite rose 0.2%.
Investors have their eyes on several data points due later this week, including reports on U.S. inflation and retail sales. The best-case scenario would be signs of a slowdown in inflation and strong sales.
Such data is influencing decisions by the world’s central banks, including the Federal Reserve, which has kept its key interest rate at its highest level in two decades in an effort to tackle so-called “stagflation.” The Fed could cut rates, which would give the U.S. economy an upward boost, but that also risks worsening inflation.
The Japanese central bank, on the other hand, is trying to fuel inflation in an economy that has long struggled with deflation by gradually raising interest rates after years of zero or minus rates.
Japan’s April-June real gross domestic product (GDP), which measures the value of a country’s products and services, will be released on Wednesday.
Some analysts say Japan’s economic growth could be relatively robust, given recent data on domestic capital investment.
“Now that energy prices and commodity prices have stabilized, we have seen real wages and incomes increase for the first time in two years in Japan,” said Jesper Koll, strategist and Japan expert, now a director at Monex Group.
The yield on the 10-year Treasury note fell to 3.90% Friday night from 3.94%. The yield on the 2-year Treasury note, which is more in line with expectations for Fed action, fell to 4.01% from 4.06%.
On Wall Street, while most stocks weakened, a 4.1% jump for Nvidia helped offset much of those losses. As one of the largest U.S. stocks by value, Nvidia’s moves have added weight to the S&P 500 and other indexes.
All in all, the S&The P 500 rose less than a quarter point, 0.23, to 5,344.39. The Dow fell 140.53 to 39,357.01 and the Nasdaq Composite gained 35.31 to 16,780.61.
Several major U.S. companies report their latest earnings later in the week, including Walmart and Home Depot. Most major U.S. companies report higher profits than analysts had expected.
In energy trading, U.S. benchmark crude fell 52 cents to $79.54 a barrel. Brent crude, the international standard, fell 63 cents to $81.67 a barrel.
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AP Business Writer Stan Choe contributed to this report.