Hong Kong stocks led gains in Asian markets on Tuesday, with the Hang Seng index rising by 2.7% and the Shanghai Composite index up by 0.1%. However, China real estate developer Vanke saw a significant slump of over 10% in its Hong Kong-listed shares following a report of a 50.6% decrease in core profit for 2023 and no dividend payout.
In other parts of Asia, Tokyo's Nikkei 225 index recovered from Monday's decline, climbing by 0.3%. South Korea's Kospi edged 0.1% higher, while Australia's S&P/ASX 200 gained less than 0.1% despite a contraction in its manufacturing sector index.
On Wall Street, the S&P 500 and Dow Jones Industrial Average dipped from their record highs, while the Nasdaq composite saw a slight increase. FedEx fell 3.3% after announcing the end of its contract with the U.S. Postal Service for air cargo delivery. Trump Media & Technology Group experienced a significant drop in value during trading.
Meanwhile, Universal Health Services faced a 4% decline following a $535 million damages award in a negligence case. Newmont's stock rose 1.6% as the price of gold continued to set records.
Treasury yields rose after U.S. manufacturing unexpectedly returned to growth, signaling a strong economy. This could impact the Federal Reserve's decisions on interest rates, with expectations for rate cuts potentially being delayed. Traders adjusted their bets on the timing of rate cuts following the manufacturing data.
This week will see key economic reports that could influence the Fed's decisions, including updates on job openings and U.S. services businesses. Friday's report on hiring is anticipated to show a slight cooling, which could be viewed positively on Wall Street to maintain a balanced economy without excessive inflation.
In the oil market, U.S. benchmark crude oil rose to $84.11 per barrel, while Brent crude reached $87.76 per barrel. The U.S. dollar saw minor fluctuations against the Japanese yen and euro.
