Stock market today: Chinese shares soar, then fade as Beijing stimulus plans fall short

TOKYO — Shares rose in Shanghai on Tuesday as Chinese markets reopened after a weeklong holiday, but then gave up some of their initial gains, as Beijing data showed. plans to revive the world’s second-largest economy appeared to be falling flat.

The Shanghai Composite index rose 3.1% to 3,438.16, although in Shenzhen, Japan’s smaller market, the main index rose 6.2%.

Hong Kong’s Hang Seng fell 7.6% to 21,336.70 as traders, apparently impressed by the update from Beijing, sold to secure gains from recent gains.

The Shanghai benchmark initially gained 10% but fell as officials from China’s top economic planning agency briefed reporters on a slew of previously announced policy measures aimed at tackling various problems such as a prolonged slump in the property market.

“The rally in Chinese markets has hit a wall, sending investors into a tailspin. The post-week holiday reopening wave barely had time to gather steam before fizzled out, and now the once-excited bulls are licking their wounds,” SPI Asset Management’s Stephen Innes said in a commentary.

Elsewhere in Asia, markets were mostly lower.

Tokyo’s Nikkei 225 index lost 1.3% to 38,842.75. while the dollar fell from 148.18 yen to 147.89 Japanese yen. A weaker yen tends to push stock prices higher.

The Kospi in Seoul fell 0.4% to 2,599.96. The Australian S&The P/ASX 200 fell 0.4% to 8,176.90.

US stock markets fell on Monday after Treasury yields hit their highest level since the summer and oil prices continued to rise.

The S&The P500 fell 1% to 5,695.94, still close to its all-time high set a week earlier. The Dow Jones Industrial Average fell 0.9% to 41,954.24 before recovering his own record. The Nasdaq index fell 1.2% to 17,923.90.

It’s a stagnation for US stocks after recovering to records on interest rate relief finally back downnow that the Federal Reserve has expanded its focus to the economy keep the economy going instead of ordinary fight against high inflation. A breakout report on US job growth released Friday, sparked optimism about the economy and hopes the Fed can make it a perfect landing.

When government bonds, which are seen as the safest possible investments, pay more interest, so do investors less inclined to pay very high prices for stocks and other things that carry a higher risk of losing money.

It’s harder to appear attractive to investors looking for income when a 10-year Treasury bond pays a yield of 4.02%, up from 3.97% late Friday and the 3.62% three weeks ago.

Yields on two-year Treasury bonds, which are more closely tracking Fed expectations, rose further on Monday. It rose to 3.99% from 3.92% late Friday.

Treasury yields may also see an upward push from the recent rise in oil prices. Crude oil prices have risen on concerns about it increasing tensions in the Middle East could ultimately lead to disruptions in the oil flow.

Brent crude, the international standard, lost $1.23 to $79.70 a barrel. On Monday the price had risen by 3.7%. U.S. crude oil, meanwhile, fell $1.21 to $75.93. The price also rose by 3.7% on Monday.

Stocks seen as the most expensive could see the biggest downward pressure from higher Treasury yields, and the spotlight is on Big Tech stocks. They drove most of the S&The P 500 returned in recent years, rising to heights that critics called exaggerated.

Apple fell 2.3%, Amazon fell 3% and Alphabet fell 2.4%, acting as one of Monday’s heaviest weights on the S&P500.

An exception was Nvidia, which rose another 2.3%. The company experienced another surge in excitement about artificial intelligence technology after Super Micro Computer rose 15.8% after saying it recently shipped more than 100,000 liquid-cooling graphics processing units.

If Treasury yields continue to rise, companies will likely need to post bigger profits to drive their stock prices much higher, and this week marks the start of the latest corporate earnings reporting season.

Analysts say earnings per share rose 4.2% for S over the summer&P 500 companies from a year earlier, led by technology and healthcare companies, according to FactSet. If these analysts are right, this would be a fifth straight quarter of growth.

In other trades, the euro rose from $1.0977 to $1.0982 early Tuesday.

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AP Business Writer Stan Choe in New York contributed.