Stock market today: Asia stocks mixed as investors await the debt ceiling vote and keep an eye on the Chinese economy

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Asian stocks saw mixed trading on Tuesday after a US bank holiday as optimism over a US debt deal was dampened by worries about the regional economy.

Japan’s benchmark Nikkei 225 rose 0.3% to 31,328.16. Australia’s S&P/ASX 200 fell 0.1% to 7,209.30. South Korea’s kospi rose 1.0% to 2,584.90.

Hong Kong’s Hang Seng rose less than 0.1% to 18,553.22. The Shanghai Composite fell less than 0.1% to 3,221.01.

Analysts say investors remain concerned about a possible “second wave” of COVID-19 cases in China, although the economic impact is expected to be less than the previous wave of the pandemic.

China’s recovery from the virus-related disruptions of recent years appears to be faltering, adding to concerns about the regional economy.

“To say China’s economic opening-up has been a disappointment might be an understatement, especially considering local stocks are now on the cusp of a bear market,” said Stephen Innes of SPI Asset Management in a comment.

Global stocks mostly ended higher on Monday after President Joe Biden and House Speaker Kevin McCarthy reached an agreement on an agreement to raise the US government debt ceiling. Now Biden and McCarthy are working to garner the votes needed to get congressional approval in time to avert a default.

In addition to the impending insolvency of the United States, there are other concerns. A key indicator of inflation, closely monitored by the Federal Reserve, came in higher than economists had expected in April. Persistent inflationary pressures are making the Fed’s fight against high prices more difficult. The central bank has been aggressively raising interest rates since 2022, but recently signaled it was likely to forego a rate hike at its mid-June meeting.

Markets will be watching closely for the US consumer confidence data to be released later in the day.

Elsewhere, the US benchmark crude price fell 25 cents to $72.42 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, fell 44 cents to $76.63 a barrel.

The US dollar rose to 140.44 Japanese yen from 140.38 yen. The euro cost $1.0700 versus $1.0711.

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Yuri Kageyama is on Twitter https://twitter.com/yurikageyama