Asian stocks were mixed on Wednesday as reports of deteriorating profits added pessimism over the widespread economic consequences of the coronavirus pandemic.
Tokyo’s Nikkei 225 lost 1% after Fitch Ratings lowered its outlook on Japan to “negative” from “stable.”
“The coronavirus pandemic has caused a sharp economic contraction in Japan, despite the country’s early success in fighting the virus,” Fitch said in announcing his decision.
Japanese carmaker Nissan Motor Co. 7201,
reported losses for the fiscal first quarter and are projected to remain red for the second year. Other popular Japanese companies, such as Canon 7751
and manufacturer of robots 6954,
With reports of poor results.
Overnight earnings reports also scared off investors by pulling stocks lower on Wall Street. Market players are waiting for the results of the meeting with the US Federal Reserve, which began on Tuesday. Prices for GCQ20 gold,
moderated their steep rise, adding 0.3% to $ 1,949.70 to the south of Asia.
Nikkei 225 NIK,
lost 1%, while the South Korean Cospi 180721,
added 0.1%. Australian S & P / ASX 200 XJO,
was flat. Hong Kong HSI Hang Seng,
increased by 0.1%, while Shanghai Composite SHCOMP,
Jingyi Pan, a market strategist with IG in Singapore, said market players are also watching data on economic growth in Hong Kong’s second quarter.
The Federal Reserve began a two-day meeting on interest rates on Tuesday, with an announcement scheduled for Wednesday. Investors are largely hoping that the central bank will keep short-term rates at their near-zero levels, but they also want to hear that this speaks to how long they can stay there.
The Fed helped begin a stock market recovery in late March after lowering interest rates and promising to buy treasury services, corporate bonds and other debt to support the economy. On Tuesday, the Fed said it would extend the life of seven lending programs for three months until the end of the year, recognizing the severity of the recession.
Still, the mood on Wall Street was lower.
S&P 500 SPX,
decreased by 0.6% to 3218.44 after the slide for the last hour lost a small increase over the previous day. Professional middle DJIA Dow Jones,
decreased by 0.8%, to 26,379.28, and the Nasdaq Composite COMP,
lost 1.3%, to 10,402.09.
This week marks the heart of the S&P 500 earnings reporting season, and several large companies have delivered results that did not live up to analysts’ expectations as the pandemic stole customers and increased some costs.
, a maker of N95 masks and various other products for consumers and businesses, fell 4.8% after reporting earnings for the last quarter, which exceeded analysts’ expectations. MCD McDonald’s,
lost 2.5% after earnings in the spring fell by more than two-thirds compared to a year earlier.
The loss of large stocks of technology has also helped lower the market. CEOs of Amazon AMZN,
, Apple AAPL,
, Facebook FB,
and Google GOOGL
the parent company is ready to testify on Wednesday a committee of the House of Representatives that is investigating Big Tech’s dominance in the market.
rose 3.9% after earnings for the last quarter, which exceeded expectations, although it decreased by almost a third compared to a year earlier. He also underlined the profit forecast for the whole year after the announcement of the start of the late phase of testing of the experimental vaccine COVID-19, which he is developing together with the German partner BioNTech.
Rising coronaviruses in many states are bringing a new wave of shutdowns, and investors hope Democrats and Republicans will be able to reach an agreement on more aid for the 16 million or so Americans receiving unemployment benefits, although the two sides appear to be far apart.
US oil test CL00,
slightly eased to $ 40.95 a barrel in e-commerce on the New York Mercantile Exchange. It lost 56 cents to $ 41.04 a barrel on Tuesday. Brent BRN00,
international standard, scored 3 cents to $ 43.64 per barrel.
fell to 105.04 Japanese yen from 105.07 yen on Tuesday. EURUSD,
cost $ 1.1728, slightly compared to $ 1.1718.