Asian stocks mixed after Wall St fell on Biden tax report | Economic news

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By JOE McDONALD, AP Business Writer

BEIJING (AP) – Asian stock markets were mixed on Friday after Wall Street fell following a report that President Joe Biden will propose to raise taxes on high net worth investors.

Shanghai, Hong Kong and Seoul are advancing while Tokyo and Sydney are falling.

Wall Street’s benchmark S&P 500 fell 0.9% overnight after Bloomberg News, citing unidentified sources, said Biden would propose to raise taxes for people who earn more than a million of dollars on stock transactions.

This has added to a mix of better corporate and hiring profits in the United States, unease that inflation and interest rates could rise, and new coronavirus infections that have prompted some governments to tighten. anti-disease checks.

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Investors are struggling to “navigate very confused global outlook” and earnings reports that “factor in a slow return to pre-pandemic life,” Oanda’s Edward Moya said in a report.

The Shanghai Composite Index rose 0.2% to 3,473.01 while the Nikkei 225 in Tokyo lost 0.7% to 28,983.31. The Hang Seng in Hong Kong gained 1% to 29,032.89.

The Kospi in Seoul advanced 0.2% to 3,183.84 while the S & P-ASX 200 in Sydney lost 0.2% to 7,039.20. New Zealand is advancing while Singapore and Jakarta are falling.

Sales on Wall Street were widespread in the wake of Biden’s tax plan report.

According to Bloomberg, this would increase the capital gains tax to 39.6% for investors earning more than $ 1 million, more than double the current rate for Americans in that income bracket. He said a separate surtax on investment income could raise the total tax rate for high net worth investors to 43.3%.

Tech stocks, banks and companies that rely on consumer spending were behind much of the slippage. Yields on Treasury bills have remained largely stable.

The S&P 500 fell to 4,134.98. It is down 1.2% for the week after peaking on Friday.

The Dow Jones Industrial Average fell 0.9% to 33,815.90. The Nasdaq composite slipped 0.9% to 13,818.41.

The latest round of US government stimulus has helped lure retail investors into the world’s largest market. Now, investors are evaluating other Washington proposals, including tax changes and Biden’s proposed $ 2.3 million infrastructure spending program.

Investors are also looking for signs of possible economic improvement, as most companies in the S&P 500 publish quarterly results. Also on Thursday, the Department of Labor reported that the number of Americans claiming unemployment benefits fell again last week to its lowest level since the start of the pandemic.

China, the world’s second-largest economy and major importer, rebounded late last year and the United States is showing strong signs of recovery. Europe and other parts of the world are lagging behind.

In energy markets, benchmark US crude rose 33 cents to $ 61.76 a barrel in electronic trading on the New York Mercantile Exchange. The contract advanced 8 cents Thursday to $ 61.43. Brent crude, used to set the price of international oils, gained 27 cents to $ 65.67 a barrel in London. It added 8 cents the previous session to $ 65.40 a barrel.

The dollar fell to 107.94 yen from 108.10 yen on Thursday. The euro rose to $ 1.2024 from 1,2008.

Copyright 2021 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


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