Asian shares gain despite Wall Street’s tech-led retreat

A person looks at an electronic stock board showing Japan’s Nikkei 225 index at a securities firm Tuesday, April 16, 2024, in Tokyo. Asian shares advanced on Thursday even after sinking technology stocks sent Wall Street lower in the S&P 500’s worst losing streak since the start of the year. (AP Photo/Eugene Hoshiko, File)

Asian shares advanced on Thursday even after sinking technology stocks sent Wall Street lower in the S&P 500’s worst losing streak since the start of the year.

U.S. futures were lower, while oil prices gained.

Tokyo’s Nikkei 225 climbed 0.3 percent to 38,090.87 and the Hang Seng in Hong Kong gained 1.5 percent to 16,489.59.

The Shanghai Composite index added 0.6 percent to 3,089.93.

South Korea’s Kospi led the region’s gains, surging 1.8 percent to 2,631.15.

In Australia, the S&P/ASX 500 rose 0.6 percent to 7,651.30.

On Wednesday, the S&P 500 lost 0.6 percent, to 5,022.21. It’s down 4.4 percent since setting a record late last month.

The Dow Jones Industrial Average slipped 0.1 percent to 37,753.31, and the Nasdaq composite sank 1.1 percent to 15,683.37.

READ: Wall Street dips to send S&P 500 to its longest losing streak since Jan

Tech stocks slumped after ASML, a Dutch company that’s a major supplier to the semiconductor industry, reported weaker orders for the start of 2024 than analysts expected. Its stock trading in the United States slumped 7.1 percent.

Nvidia dropped 3.9 percent, and Broadcom sank 3.5 percent to serve as the two heaviest weights on the S&P 500.

The tech weakness overshadowed stronger-than-expected profit reports from some big companies, including United Airlines. It soared 17.4 percent after reporting stronger results for the start of the year than analysts expected, lifted by strong demand from business fliers.

Sharp tumbles in oil prices lessened investors’ worries about inflation, which in turn helped Treasury yields ease.

The 10-year Treasury yield sank to 4.58 percent from 4.67 percent late Tuesday. The two-year yield, which moves more closely with expectations for the Fed, fell to 4.92 percent from 4.99 percent.

Yields on Tuesday had returned to where they were in November after top officials at the Federal Reserve suggested the central bank may hold its main interest steady for a while.

READ: When will the US Fed cut rates? Maybe later or not at all

It wants to get more confidence that inflation is sustainably heading toward its target of 2 percent. Its main interest rate has been sitting at its highest level since 2001.

High interest rates hurt prices for investments and increase the risk of a recession, but Fed officials are concerned after a string of reports this year has shown inflation remaining hotter than forecast.

Traders are now mostly expecting just one or two cuts to interest rates from the Federal Reserve this year, according to data from CME Group. That’s down from forecasts for six or more at the start of the year.

With little near-term help expected from an easing of interest rates, companies will need to deliver fatter profits to justify their big runs in stock price since autumn.

Travelers slumped 7.4 percent after the insurer’s quarterly results fell short of forecasts. It had to contend with more losses from catastrophes.

J.B. Hunt Transport Services fell 8.1% after reporting weaker revenue and results than expected. It was hurt in part by competition in the eastern part of the country and by higher wages for workers and other costs.

On the winning side of Wall Street was Omnicom Group. It rose 1.6 percent after reporting stronger profit for the latest quarter than analysts expected. The marketing and communications company highlighted growth trends in most markets around the world, outside the Middle East and Africa.

The stock of Donald Trump’s social media company also continued to swing sharply, this time jumping 15.6 percent. That followed two straight losses of more than 14 percent.

Experts say the stock is caught up in frenzied trading driven more by public sentiment around the former president than by the business prospects of the company.

In oil trading, U.S. benchmark crude picked up 19 cents to $82.88 per barrel. It had lost $2.67 on Wednesday.

Brent crude, the international standard, gained 25 cents to $87.54 per barrel.

The U.S. dollar slipped to 154.19 Japanese yen from 154.38 yen. The euro rose to $1.0678 from $1.0673.