World markets are mixed and Japan's shares dip after election leaves Ishiba's future in doubt
BANGKOK — World shares were mixed on Tuesday after U.S. stock indexes inched to more records at the start of a week of profit updates from big U.S. companies.
Germany's DAX lost 0.5% to 24,186.14 and the CAC 40 in Paris gave up 0.4% to 7,768.46. Britain's FTSE 100 edged 0.1% lower, to 9,009.34.
The futures for the S&P 500 and the Dow Jones Industrial Average were virtually unchanged.
In Asian trading, Japan's benchmark surged and then fell back as it reopened from a holiday Monday following the ruling coalition's loss of its upper house majority in Sunday's election.
The Nikkei 225 shed 0.1% to 39,774.92.
Analysts said the market initially climbed as investors were relieved that Prime Minister Shigeru Ishiba vowed to stay in office despite the setback. But the election's outcome has added to political uncertainty and left his government without the heft needed to push through legislation.
A breakthrough in trade talks with the U.S. might win Ishiba a reprieve, but so far there's been scant sign of progress in negotiating away the threat of higher tariffs on Japan's exports to the U.S. beginning Aug. 1.
'Relief may be fleeting. Ishiba's claim to leadership now rests on political duct tape, and history isn't on his side. The last three LDP leaders who lost the upper house didn't last two months,' Stephen Innes of SPI Asset Management said in a commentary.
Elsewhere, Hong Kong's Hang Seng rose 0.4% to 25,082.78, while the Shanghai Composite index advanced 0.6% to 3,581.86.
South Korea's Kospi sank 1.3% to 3,169.94, with investors concerned over the Aug. 1 deadline for making a deal with U.S. President Donald Trump or facing 25% tariffs on all the country's exports to the U.S.
Australia's S&P/ASX 200 added 0.1% to 8,677.20.
India's Sensex gained 0.1%, while
In Thailand, the SET sank 1.1% after the government named Vitai Ratanakorn as the new future governor of the central bank. He is viewed as likely to be less independent than the current governor, raising concerns about the bank's independence, analysts said.
Vitai will replace Sethaput Suthiwartnarueput, when his term as governor ends in September.
Many of Trump's stiff proposed tariffs are paused after he extended the deadline for talks to allow more time to reach potential trade deals that could lower those rates. Aug. 1 is the next big deadline, at least for now.
U.S. stock indexes inched their way to more records on Monday to kick off a week full of profit updates from big U.S. companies.
General Motors will report its latest profit results later this week, along with such market heavyweights as Alphabet, Coca-Cola and Tesla.
The S&P 500 rose 0.1% and squeaked past its prior all-time high set on Thursday. The Dow edged down less than 0.1% and the Nasdaq composite added 0.4% to its own record.
Verizon Communications helped lead the way and rose 4%. The telecom giant reported a stronger profit and higher revenue for the latest quarter than expected and raised its forecasts for the full year.
That helped offset a 5.4% drop for Sarepta Therapeutics, which continued to fall after the Food and Drug Administration said on Friday that it asked the company to voluntarily stop all shipments of Elevidys, its gene therapy for Duchenne muscular dystrophy, due to safety concerns.
Cleveland-Cliffs rallied 12.4% after the steel producer reported a smaller loss for the spring than analysts expected. It's a major supplier to the auto industry, and Trump's tariffs steer companies hoping to sell cars in the United States toward steel made in the country.
In other dealings early Tuesday, U.S. benchmark crude oil lost 55 cents to $65.40 per barrel, while Brent crude, the international standard, gave up 54 cents to $68.67 per barrel.
The U.S. dollar rose to 147.67 Japanese yen from 147.38 yen. The euro slipped to $1.1690 from $1.1696.
Elaine Kurtenbach, The Associated Press
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