BANGKOK (AP) โ Asian stocks advanced Wednesday, tracking gains on Wall Street after Verizon and other big companies reported stronger-than-expected summer profits.
Benchmark indices rose in Hong Kong, Tokyo and Shanghai, but fell in Seoul and Sydney. US futures were mixed and oil prices fell.
As the pace of earnings reports accelerates, the hope is that companies will post their first growth in a year. This strength is crucial for stock markets, which have plunged under the weight of higher bond yields.
The 10-year Treasury yield has been rising rapidly from below 3.50% in the spring and reaching the Federal Reserve's main overnight interest rate, which is at its highest level since 2001, above 5 .25%.
High returns hurt the prices of stocks, cryptocurrencies, and other investments. They also dramatically slow down the economy and add stress to the entire financial system.
The 10-year Treasury yield was steady at 4.84% early Wednesday.
In Tokyo, the Nikkei 225 index gained 1.3% to 31,466.92. Hong Kong's Hang Seng rose 1.8% to 17,290.91 and the Shanghai Composite Index rose 0.5% to 2,977.84.
South Korea's Kospi fell 0.4% to 2,373.88, while Sydney's S&P/ASX 200 was steady at 6,856.60. India's Sensex fell 1.3% and the Bangkok SET rose 1.2%.
On Tuesday, the S&P 500 rose 0.7% to 4,247.68 to snap a five-day losing streak. The Dow Jones Industrial Average gained 0.6% to 33,141.38. The Nasdaq Composite rose 0.9% to 13,139.87.
Verizon jumped 9.3% after saying it increased its broadband subscriber count by 20% and earned more than analysts expected over the summer.
General Electric rallied 6.5% after posting better-than-expected earnings and raising its profit forecast for the year. Coca-Cola rose 2.9% after saying growth in Mexico, India and other markets helped it post better profits over the summer than analysts expected.
So far, the broader economy has remained remarkably resilient in the face of much higher interest rates. A strong labor market and spending by American households have helped keep the economy moving forward.
But some investors worry that even if interest rates and yields don't rise further, they will still be high enough to drag the economy into a recession if the Federal Reserve holds firm.
Recent strong data reports have significantly raised expectations for the growth of the US economy in the third quarter of the year. Economists at Goldman Sachs, for example, have raised their growth forecast for the quarter to 4.6% from just 1.5% in mid-August.
A preliminary report on Tuesday said business activity is strengthening in October more than economists expected. The S&P Global report indicated that demand from manufacturers improved for the first time since April.
While that strength has prevented a recession, it could also be fueling inflation, encouraging the Federal Reserve to keep rates high longer. That, in turn, could lead to further weakness in the future.
Some warning signs are also found in the hot streak of corporate earnings reports.
General Motors, for example, said it earned more over the summer than analysts had predicted. But it also warned that strikes by its unionized workers are slashing its pretax profits. GM shares fell 2.3% after swinging between gains and losses several times.
In the oil market, prices have fallen, taking some more pressure off inflation. On Wednesday they went up. A barrel of benchmark U.S. oil rose 7 cents to $83.80. On Tuesday, it fell $1.75 to settle at $83.74.
Brent crude, the international standard, gained 10 cents early Wednesday to $88.17 a barrel. It fell $1.76 to $88.07 a barrel on Tuesday.
US oil had been above $93 last month, and has bounced up and down since then amid concerns that the latest war between Hamas and Israel could lead to supply disruptions from Iran or other major countries. oil producers.
In foreign exchange transactions, the US dollar bought 149.81 Japanese yen, against 149.85 yen. The euro was trading at $1.0604, down from $1.0596.
___
AP Business Writer Stan Choe contributed.
