Asian markets shares were mixed on Tuesday, with trading closed in Tokyo and Seoul for New Year holidays.
Australia’s S&P/ASX 200 in Sydney skidded 0.9% to 8,159.10.
Hong Kong’s Hang Seng added nearly 0.1% to 20,059.95, while the Shanghai Composite lost 0.7% to 3,383.86 after Chinese manufacturing data seemed to show that Beijing’s stimulus measures have not done enough to boost the nation’s sluggish economy.
China’s Purchasing Managers’ Index, based on a survey of factory managers, slipped to 50.1 in December from 50.3 the previous month, the National Bureau of Statistics said Tuesday. It was the third straight monthly reading above 50, a level that indicates an expansion of manufacturing activity.
Trading is set to resume in Tokyo on January 6, as markets will stay closed for the rest of the week for the New Year holidays. South Korean markets will be closed for New Year’s Day and resume trading Thursday.
On Monday, U.S. stocks closed broadly lower, with the S&P 500 falling 1.1% to 5,906.94, its third straight decline. Roughly 90% of stocks within the index lost ground. On the second-to-last day of 2024, the benchmark index was still on track for its second straight yearly gain of more than 20%.
The Dow Jones Industrial Average fell 1% to 42,573.73, and the Nasdaq composite ended 1.2% lower, at 19,486.78.
Big Tech companies were the heaviest weights on the market, worsening the slump. Apple and Microsoft fell 1.3%. Their pricey valuations tend to have an outsized impact on the broader market.
Elsewhere among tech stocks, Meta Platforms dropped 1.4%, Netflix slipped 0.8% and Amazon fell 1.1%.
The S&P 500’s technology and communication services sectors have been the market’s high flyers, notching gains of 37.1% and 39.9%, respectively, so far this year.
Boeing fell 2.3% after one of its jets skidded off a runway in South Korea, killing 179 of the 181 people aboard. South Korea is inspecting all 737-800 aircraft operated by airlines in the country.
The disaster was yet another blow for Boeing following a machinists strike, further safety problems with its troubled top-selling aircraft and a plunging stock price. Its shares have declined more than 30% this year.
Airlines that fly Boeing jets wavered in the wake of the crash. United Airlines fell 1.4% and Delta Air Lines dropped 0.9%.
Markets are nearing the close of a stellar year driven by a growing economy, solid consumer spending and a strong jobs market. Wall Street expects companies within the S&P 500 to report broad earnings growth of more than 9% for the year, according to FactSet. The final figures will be tallied following fourth-quarter reports that start in a few weeks.
Investors were encouraged by inflation cooling throughout the year to close to the Federal Reserve’s 2% target. That raised hopes that the central bank would deliver a steady stream of interest rate cuts, which would ease borrowing costs and fuel more economic growth.
The Fed cut interest rates three times in 2024, but has signaled a more cautious approach heading into 2025 as inflation shows signs of reheating. The latest report on consumer prices showed that inflation edged slightly higher, to 2.7%, in November.
President-elect Donald Trump’s threats to hike tariffs have added to worries about the potential for inflation to reignite. Companies typically pass along the higher costs from tariffs on goods and raw materials to consumers.
Investors have very little corporate and economic news to review this week, which is shortened by the New Year holiday. U.S. markets will be closed on Wednesday.
On Thursday, investors will get an updated snapshot of U.S. construction spending for the month of November. On Friday, Wall Street will receive an update on manufacturing for December.
In energy trading, benchmark U.S. crude rose 62 cents to $71.61 a barrel. Brent crude, the international standard, added 59 cents to $74.58 a barrel.
In currency trading, the U.S. dollar fell to 156.22 Japanese yen from 156.90 yen. The euro cost $1.0409, little changed from $1.0410.
