Stock market today: Asian shares trade mixed after Wall Street closes near record finish

TOKYO — Asian shares traded mixed on Monday as investors waited for further indications that the Federal Reserve might cut interest rates.

Japan’s Nikkei 225 lost 1.2% to 40,414.12 as investors sold shares to protect their gains after the benchmark recently hit record highs.

Hong Kong’s Hang Seng climbed 0.2% to 16,535.89, while the Shanghai Composite gained 0.3% to 3,056.52.

The Chinese yuan, or renminbi, fell to a four-month low of 7.2282 against the US dollar.

The Australian S&The P/ASX 200 rose 0.5% to 7,811.90. South Korea’s Kospi lost 0.2% to 2,743.04.

A top Japanese finance official expressed reservations about the recent rise in the US dollar against the Japanese yen, fueling speculation about possible market interventions. The dollar has risen to almost 152 yen, a jump from just above 130 yen a year ago. It traded at 151.23 yen on Monday, down from 151.41 yen. The euro cost $1.0818, up from $1.0810.

Last week, the Bank of Japan raised its main interest rate for the first time in seventeen years, from below zero to barely above zero, or a negative interest rate. That means interest rates in Japan still remain below those of the US and many other countries.

“The recent Bank of Japan meeting added a new layer of complexity to the dollar’s trajectory. Despite the BOJ’s decision to raise rates, cautious communications failed to stimulate demand for the Japanese yen,” said Luca Santos, currency analyst ACY Securities.

On Friday the S&The P500 fell 0.1% from an all-time high to close at 5,234.18. The Dow Jones Industrial Average fell 0.8% to 39,475.90 and the Nasdaq index rose 0.2% to 16,428.82, adding to its record.

In the bond market, yields on US government bonds fell. The yield on the 10-year government bond fell to 4.21% from 4.27% at the end of Thursday.

The US Federal Reserve has indicated that it will make three interest rate cuts this year as long as inflation continues to cool. The Fed’s key interest rate is at its highest level since 2001.

In energy trading, U.S. benchmark crude added 51 cents to $81.14 a barrel. Brent crude, the international standard, rose 50 cents to $85.93 a barrel.