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Global Shares Mixed After US Rally 10/28 04:45
World shares were mixed Wednesday after AI stocks drove gains on Wall Street.
HONG KONG (AP) -- World shares were mixed Wednesday after AI stocks drove
gains on Wall Street.
U.S. futures edged higher. Oil prices rose more than 1% after an attack on a
major Saudi Arabia refinery by Iran-backed Houthi rebels on Tuesday renewed
supply concerns.
In early European trading, Germany's DAX shed 0.2% to 25,539.36, while the
CAC 40 in Paris declined 0.1% to 7,882.52. Britain's FTSE 100 was down 0.4% at
10,645.50.
The future for the S&P 500 rose 0.1%, while that for the Dow Jones
Industrial Average was 0.2% lower.
In Asia, South Korea's Kospi rose 6.8% to close at 6,023.73.
Memory chipmaker SK Hynix jumped 11.4% to its highest level in two weeks
after it reported a record-high operating profit of 83.3 trillion won ($62.8
billion) for the last quarter, up nearly seven-fold from a year earlier and
beating market estimates.
Samsung Electronics surged 9.1%. It is set to report its third-quarter
earnings Thursday.
Japan's benchmark Nikkei 225 rallied 1.1% to 63,954.19. Semiconductor maker
Kioxia Holdings climbed 9.6% ahead of its quarterly earnings report on Friday.
The Bank of Japan is scheduled to begin a two-day policy meeting on
Thursday, with markets expecting its benchmark interest rate to be unchanged.
In Hong Kong, the Hang Seng gained 0.3% to 23,104.91, while the Shanghai
Composite index gained 0.9% to 3,681.47.
Taiwan's Taiex advanced 2%.
India's Sensex fell 0.8%. Jio Platforms, India's largest telecom company,
surged 21% in its market debut after the country's biggest ever initial public
offering.
Australia's S&P/ASX 200 gained 0.3% to 8,847.30.
Amid a busy week for central banks, the Reserve Bank of New Zealand
surprised market watchers by keeping its benchmark interest rate at 2.75%.
The S&P/NZX 50 Index edged 0.1% higher.
On Tuesday, the S&P 500 rose 0.6% and pulled within 1.2% of its all-time
high set earlier this month. The Dow Jones Industrial Average added less than
0.1%, and the Nasdaq composite climbed 1.2%.
The majority of stocks within the S&P 500 fell, but gains for influential AI
stocks made up for that. AI stocks rose to another winning day after swerving
for weeks on worries about whether their boom is under threat because of how
expensive it's become for companies to borrow money to build data centers and
buy more AI chips.
Broadcom climbed 4% after announcing a $63 billion financing deal where
several Wall Street firms will help Anthropic get access to Broadcom's XPU AI
accelerators and networking solutions.
Nvidia added 0.9% and CoreWeave, a company that's borrowed money to buy AI
chips that it rents out to customers over the cloud, jumped 7.9%.
Companies overall are under pressure to deliver big growth in profits.
Expectations are high among financial analysts and investors, and that's what
allowed their stock prices to run to records recently despite high inflation,
high interest rates and other concerns weighing on the market.
Confidence among U.S. shoppers has tumbled recently as pressure keeps
building on them from high inflation. But a report on Tuesday said that U.S.
consumer confidence improved in October, when economists expected further
weakening.
In the bond market, Treasury yields held relatively steady a day before the
Federal Reserve is scheduled to announce its latest decision on interest rates.
The Fed last month hiked the fed funds rate for the first time in three years
in hopes of slowing inflation, but the widespread expectation on Wall Street is
that it will hold rates steady this time.
The yield on the 10-year Treasury edged down to 4.99% from 5.00% late Monday.
In other dealings early Wednesday, Brent crude oil, the international
standard, rose 1.4% to $110.99 a barrel. U.S. benchmark crude gained 1.4%, to
$101.33 per barrel.
The U.S. dollar slid to 157.74 Japanese yen from 157.91 yen. The euro was
trading at $1.1123, down from $1.1127.
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