Global Shares Mixed as Wall Street Hits Record Highs on Tech Gains
Tokyo: Global shares traded in a mixed manner Wednesday, cooling somewhat from the excitement triggered by the recent record highs at Wall Street, while investors focused their attention on global interest rates and the uncertainty generated by the changes in Venezuela.
France’s CAC 40 slid 0.3 percent to 8,213.78 in the early hours of trading The DAX in Germany increased 0.4 percent to 24,993.97. The British FTSE 100 slipped 0.6% to 10,067.95. U.S. futures were mixed. For the contract, Dow Jones Industrial Average edged upwards of 0.1 percent. This was the case for the S&P 500 also fell 0.1 percent.
Japan’s Nikkei 225 lost 1.1% to finish at 51,961.98, a day after setting a record.
China’s decision late Tuesday to ban exports to Japan of goods that might be used for military purposes hit energy
Relationships with Japan as well as China have become more strained after Japan’s prime minister Sanae Takaichi warned in the beginning of November that the military might get involved should China was to take a stand against Taiwan an island that is self-ruled which Beijing declares as its own sovereign territory. In the last week China held military exercises within Taiwan.
Elsewhere in Asia, South Korea’s Kospi gained 0.6% to 4,551.06.
In Australia, the S&P/ASX 200 rose 0.2% to 8,695.60.
Hong Kong’s Hang Seng declined 0.9% to 26,458.95, while the Shanghai Composite added less than 0.1% to 4,085.77.
“Global uncertainty continues to deepen,” Tan Boon Heng of Mizuho Bank in Singapore said in a statement in which he referred to the arrest of Venezuelan President Nicolas Maduro by U.S. forces in a weekend sweep.
The rally spurred by buying of technology shares may have run its course, analysts said.
“Tech appetite is weaker in Asia,” Ipek Ozkardeskaya, a senior analyst at Swissquote, said in a report. “It increasingly feels like good news is no longer generating the same euphoria seen over the past three years. The tech rally is showing signs of fatigue, supporting rotation trades a trend further reinforced by geopolitical headlines.”
On Tuesday, the S&P 500 rose 0.6%, setting a record on just the third trading day of the year. The Dow added 1% and the Nasdaq composite rose 0.6%.
This week will bring reports on the U.S. jobs market, including updates on job openings and overall employment.
The U.S. Federal Reserve will be analyzing such data for its next meeting in late January. The central bank cut its benchmark interest rate three times late in 2025. Wall Street expects the Fed to hold interest rates steady at its January meeting.
In other trading early Wednesday, the price of benchmark U.S. crude oil fell 65 cents to $56.48 per barrel. The price of Brent crude, the international standard, fell 47 cents to $60.23 per barrel.
In currency trading, the U.S. dollar fell to 156.55 Japanese yen from 156.68 yen. The euro cost $1.1684, down from $1.1689.
The price of gold fell 0.5%, while silver gave up 2.3%.
