Asian shares fall, trading muted with Good Friday holiday

TOKYO –

Asian shares dropped in muted trading because markets were closed for GoodFriday and other holidays.

Tokyo, Seoul, Shanghai saw a decline in benchmarks. Friday was a holiday in markets including Sydney, Sydney Manila, Bangkok, Hong Kong and Manila. U.S. markets and European ones were also closed.

Sentiment is being affected by shutdowns in Chinese major cities as a result of coronavirus outbreaks, and by the conflict in Ukraine.

“The Russia-Ukraine conflict inflation effects are now more meaningful than direct military developments in a market sense. These consequences have fabricated an uncertain environment that could keep investors wary,” Stephen Innes of SPI Asset Management saidComment

“It should be a quiet session given the Good Friday holidays,” he added.

The head of the International Monetary Fund warned Thursday that Russia’s war against Ukraine was darkening the economic prospects for most of the world’s countries and reaffirmed the danger high inflation presents to the global economy.

Japan’s benchmark Nikkei 225 lost 0.3% to 27,089.25. South Korea’s Kospi dropped 0.7% to 2,697.15. The Shanghai Composite dropped 0.6% to 3,205.55

Stocks closed lower on Wall Street as investors gave mixed reviews to earnings from four of the nation’s largest banks. The S&P 500 fell 1.2% to 4,392.59, ending a shortened trading week with a 2.1% decline.

The Dow Jones Industrial Average fell 0.3% to 34.451.23. The Nasdaq declined 2.1% to 13351.08. Stocks in smaller companies also dropped ground. The Russell 2000 dropped 1% to 2,004.98.

As the earnings season kicks into gear, a quartet of large banks saw a drop in profits for their first quarter. Volatility in markets and the conflict in Ukraine led to deal-making slowing down, while mortgages were less sought after by fewer people.

Citigroup rose 1.6% and Wells Fargo fell 4.5%. Morgan Stanley rose 0.7%, while Goldman Sachs fell 0.1%.

The 10-year Treasury yield rose to 2.83% after bond yields increased again.

“With higher oil prices, higher bond yields, (it) implies the market continues to worry about inflation, worried about Ukraine, worried about the Fed’s response to all of this,” saidSam Stovall is chief investment strategist at CFRA.

Thursday’s decline in technology stocks was offset by gains elsewhere in markets. Many of the larger technology companies have high valuations that give them greater control over the direction the market will take. Microsoft fell 2.7%.

The market was also affected by retailers and other businesses that depend on consumer spending. Amazon fell 2.5%. The price of crude oil rose, and so did energy stocks. Exxon Mobil’s share rose 1.2%

Investors turned again their attention to Elon Musk, Tesla founder and CEO, and Twitter. Musk offered to buy the social media company for US$54.20 a share, two weeks after revealing he’d accumulated a 9% stake.

Musk has criticised Twitter for not upholding free speech principles. saidIt was required to transform as a private corporation in a regulatory filing. Twitter stock declined 1.7% to $45.08, far below Musk’s asking price.

Wall Street was left with mixed economic data after several reports of high inflation earlier in the week. The Commerce Department saidRetail sales increased 0.5% in March due to higher gasoline prices. This is because consumers are continuing to spend despite the high inflation.

According to the U.S. Labor Department (US Labor Department), while unemployment benefits applications increased last week, they remained historically low. These data indicate a strong U.S. labour market, with record-high job openings. There have been very few layoffs.

Inflation is at its highest level in over 40 years in the United States. Economists and analysts are closely monitoring how consumers respond to higher prices for everything, from food and clothing to gasoline and fuel.

On Thursday, the benchmark U.S. crude oil closed nearly 11% higher in energy trading. It rose $2.70 to $106.95 per barrel. Brent crude oil, which is the international standard, rose $2.92 to $111.70 per barrel. Friday markets were closed

Currency trading saw the U.S. Dollar rise to 126.42 Japanese Yuen, from 125.89. From $1.0832, the euro cost $1.0801 – a drop of 1.0832

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AP Business Writers Alex Veiga, Damian J. Troise, and Damian J. Troise all contributed.