Asian shares mostly higher after US stocks hit another record as Tesla and Nike rally

Associated Press

2 days ago

MANILA, Philippines (AP) — Asian shares mostly gained on Thursday after U.S. stocks hit another all-time high.
U.S. futures edged up while oil prices fell.
Tokyo's Nikkei 225 inched up 0.1% to 39,794.16. In South Korea, the Kospi added 1% to 3,106.46, while Australia's S&P/ASX 200 was down 0.1% to 8,589.30.
The Hong Kong's Hang Seng index lost 1% to 23,976.41. The Shanghai Composite index edged up 0.1% to 3,57.36.
Taiwan's TAIEX surged 1.4% while India's Sensex rose 0.3%
Mizuho Bank, Ltd., in a commentary, said there is lopsided optimism about Vietnam's deal with the US, with Vietnamese imports subject to 20% tariffs in return for 0% tariffs on U.S. goods.
'A higher 40% tariff on goods deemed to be transshipped via Vietnam could accentuate risks to and from China,' it said, adding that 'other Asian economies will be particularly vulnerable to a two-sided geoeconomic squeeze given that their reliance on both China and U.S. are significant.' President Donald Trump said on Wednesday that he reached a deal with Vietnam, where U.S. products sold in the country will face zero tariffs and Vietnamese-made goods will face a U.S. tariff of 20%. That helped companies that import lots of things from Vietnam, including Nike, whose stock rose 4.1%. Factories in Vietnam made half of all Nike brand footwear in its fiscal year of 2024. The S&P 500 rose 0.5% and set a record for the third time in four days. The Dow Jones Industrial Average edged down by 10 points, or less than 0.1%, and the Nasdaq composite gained 0.9%.
Tesla helped drive the market higher and rose 5% after saying it delivered nearly 374,000 of its Model 3 and Model Y automobiles last quarter. That was better than analysts expected, though the electric-vehicle maker's overall sales fell 13% from a year earlier.
Worries have been high that CEO Elon Musk's involvement in politics is turning off potential Tesla buyers.
Constellation Brands climbed 4.5% despite reporting a weaker profit for the latest quarter than analysts expected. It pointed to slowing growth for jobs in the construction industry and other '4000 calorie+' sectors, which tends to hurt demand for its beer.
But the company selling Modelo beer and Robert Mondavi wine nevertheless stuck with its financial forecasts for the full upcoming year.
They helped offset a 40.4% drop for Centene. The health care company withdrew its forecasts for profit this year after seeing data that suggests worse-than-expected sickness trends in many of the states where it does business. It was the worst day for the stock since its debut in 2001.
All told, the S&P 500 rose 29.41 points to 6,227.42. The Dow Jones Industrial Average slipped 10.52 to 44,484.42, and the Nasdaq composite climbed 190.24 to 20,393.13.
In the bond market, Treasury yields were mixed ahead of a highly anticipated report on Thursday, which will show how many jobs U.S. employers created and destroyed last month. The widespread expectation is that they hired more people than they fired but that the pace of hiring slowed from May.
A stunningly weak report released Wednesday morning raised worries that Thursday's report may fall short. The data from ADP suggested that U.S. employers outside the government cut 33,000 jobs from their payrolls last month, when economists were expecting to see growth of 115,000 jobs.
The ADP report does not have a perfect track record predicting what the U.S. government's more comprehensive jobs report will say each month. That preserves hope that Thursday's data could be more encouraging. But a fear has been that uncertainty around President Donald Trump's tariffs could cause employers to freeze their hiring.
Many of Trump's stiff proposed taxes on imports are currently on pause, and they're scheduled to kick into effect in about a week. Unless Trump reaches deals with other countries to lower the tariffs, they could hurt the economy and worsen inflation.
Other factors could also be dragging on the job market, such as the U.S. government's termination of protected status for 350,000 Venezuelans, potentially exposing them to deportation. That alone could create a drag on payrolls of 25,000 jobs, according to Goldman Sachs economist David Mericle, whose forecast for Thursday's report is weaker than many of his peers.
In other dealings on Thursday, the benchmark U.S. crude lost 45 cents to $67, while Brent crude, the international standard, shed 47 cents to $68.64. The dollar was trading at 143.77 Japanese yen, up from 143.65 yen. The euro was unchanged at $1.1790.