US Stocks Are Mixed as Energy Companies Rise, Retailers Dip
HONG KONG — Asian stocks were mostly lower Friday after North Korea fired off another missile over Japan, ratcheting up geopolitical tensions and denting investor sentiment.
KEEPING SCORE: Japan’s benchmark Nikkei 225 index edged up 0.1 percent to 19,835.30 but South Korea’s Kospi lost 0.4 percent to 2,369.32. Hong Kong’s Hang Seng fell 0.7 percent to 27,571.42 and the Shanghai Composite in mainland China shed 0.6 percent to 3,353.11. Australia’s S&P/ASX 200 sank 0.6 percent to 5,704.90.
MISSILE TENSIONS: North Korea launched an intermediate-range missile that flew 3,700 kilometers (2,300 miles), setting off alarms as it flew over Japan to land in the Pacific Ocean. The launch was the latest sign of Pyongyang’s willingness to defy international opinion as it moves closer to building up a military arsenal targeting U.S. forces.
TRADER TALK: “Risk-off sentiment is at the front and center of markets once again with North Korea’s latest missile firing,” said Jingyi Pan, market strategist at IG in Singapore. “Asian shares are expected to be weighed with the heightening of tensions as investors digest reactions from world leaders.”
FED WATCH: Investors were also digesting the first of a batch of U.S. economic data as they await the Fed’s next move on interest rates. Data released Thursday showed U.S. consumer prices rose in August at their fastest pace in seven months, a possible sign inflation is picking up pace. Industrial production and retail sales figures are due Friday, which could provide more hints on whether the Fed, which meets next week, will remain on track to raise rates by the end of the year.
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