BANGKOK– Shares retreated in Asia on Monday China reported lackluster economic indicators for November as Bitcoin rose to new highs above $106,000.
Oil prices fell and US futures were little changed.
Bitcoin was trading at $104,948 early Monday, up 3.4% but down from a previous high of $106,495.
The price of the cryptocurrency has soared since the November elections, given that of newly-elected US President Donald Trump Bitcoin-friendly attitude. Trump signaled a lighter regulatory approach to digital currencies with his choice of crypto lawyer Paul Atkins as the next chairman of the Securities and Exchange Commission. Bitcoin was trading below $70,000 before the November 5 election.
A report on Monday showed that Chinese retail sales slowed in November, while factory output growth was flat and home sales fell. The report says the economy and employment are stable, but notes a complicated “external environment”, reflecting unrest over the prospects for the coming months once newly-elected US President Donald Trump takes office. increase tariffs on imports from China.
Japan’s Nikkei 225 index fell 0.1% to 39,438.74, while Hong Kong’s Hang Seng lost 0.8% to 19,821.24.
The Shanghai Composite index was virtually unchanged at 3,390.91.
South Korea’s Kospi lost 0.3% to 2,486.47 as South Korean law enforcement authorities pushed for a summons President Yoon Suk Yeol under questioning about his short-lived martial law, and the Constitutional Court met to discuss whether he should be removed from office or reinstated.
Taiwan’s Taiex rose 0.1%, while India’s Sensex fell 0.4%. Thailand’s SET fell 0.9%.
On Friday, Wall Street’s major stock indexes fell to a mixed close, capping off a rare bumpy week for the market.
The S&The P500 finished almost flat, down less than 0.1% at 6,051.09. The benchmark index posted a loss this week, its first after three consecutive weekly gains.
The Dow Jones Industrial Average fell 0.2% to 43,828.06, while the Nasdaq composite rose 0.1% to 19,926.72, finishing just below Wednesday’s record high.
There were more than twice as many decliners than gainers on the New York Stock Exchange.
Gains in technology stocks helped temper losses in communications services, financial services and other sectors of the market.
Broadcom rose 24.4% for the biggest gain in the S&P500 after the semiconductor company surpassed Wall Street’s earnings targets and issued a positive forecast, highlighting its artificial intelligence products. The company also increased its dividend.
But some technology stocks were a drag on the market. Nvidia fell 2.2%, Meta Platforms fell 1.7% and Google parent Alphabet fell 1.1%.
The market’s other decliners included Airbnb, which fell 4.7% for the biggest loss in the S&P500, and Charles Schwab, which closed 4% lower.
Furniture and homewares company RH, formerly known as Restoration Hardware, rose 17% after raising its sales growth forecast for the year.
Wall Street’s rally stalled this week amid mixed economic news and ahead of the Federal Reserve’s final meeting of the year. The central bank is widely expected to cut rates for the third time since its September meeting this week.
Expectations of a series of interest rate cuts have the S&P500 to 57 all-time highs so far this year.
The Fed cut its benchmark interest rate after aggressively raising rates to curb inflation. Interest rates were raised from near zero in early 2022 to a 20-year high in mid-2023. Inflation eased under pressure from higher interest rates, almost reaching the central bank’s 2% target.
The economy, including consumer spending and employment, remained strong despite inflationary pressures and high borrowing costs. However, a slowing labor market has contributed to a long-awaited reversal in Fed policy.
In other trades early Monday, U.S. benchmark crude lost 47 cents to $70.82 a barrel. Brent crude, the international standard, lost 36 cents to $74.13 a barrel.
The US dollar fell from 153.71 yen to 153.62 Japanese yen. The euro rose from $1.0491 to $1.0516.