Asian stocks trade mixed as Japan and other markets calm down after last week of wild swings

TOKYO — Asian shares traded mixed on Tuesday as the Tokyo benchmark rebounded and calmed after last week’s decline.

Japan’s Nikkei 225 index gained 2.2% in morning trading to 35,782.68, after rising more than 1,000 points at one point. Australia’s S&The P/ASX 200 rose 0.1% to 7821.60. South Korea’s Kospi shed 0.3% to 2610.17. Hong Kong’s Hang Seng index was little changed, down less than 0.1% to 17107.52, while the Shanghai Composite rose less than 0.1% to 2859.62.

In Tokyo, demand was buoyed by integrated circuit issues, with Tokyo Electron shares rising 5.4%, reflecting strong demand for technology-related issues on Wall Street.

Investors also seemed pleased with how the yen’s volatile value recently seemed to be calming down. While a cheap yen has been a boon for major Japanese exporters like Toyota Motor Corp., boosting the value of overseas earnings when converted to yen, a cheap currency has gradually eroded the country’s purchasing power.

The U.S. dollar rose to 147.30 Japanese yen from 147.17 yen. The euro was at $1.0936, little changed from $1.0935.

“Global geopolitical events such as tensions in East Asia, ongoing conflicts in Eastern Europe or disruptions in global trade could have further impact on the dollar,” said Luca Santos, currency analyst at ACY Securities.

Japanese stocks suffered their worst decline last week since the 1987 Black Monday crash. Comments from a senior Bank of Japan official stressing the importance of stability helped calm markets somewhat.

Global uncertainty, such as over the situation in Ukraine and the Middle East, as well as concerns about China, are adding to the fears that typically cause market volatility.

Monday was a quiet trading day on Wall Street, with S&The P 500 ended little changed. The Dow Jones Industrial Average fell 140 points, or 0.4%, and the Nasdaq Composite rose 0.2%.

Investors are keeping an eye on a variety of data expected later this week, including U.S. inflation and retail sales reports. The best-case scenario would be signs of slowing inflation and strong sales.

Such data is influencing decisions by global central banks, including the Federal Reserve, which has kept its key interest rate at its highest level in two decades in an attempt to deal with what is known as “stagflation.” The Fed could cut interest rates, giving the U.S. economy a boost, but that also risks worsening inflation.

Japan’s central bank, meanwhile, is trying to boost inflation in an economy long stuck in deflation by gradually raising interest rates after years of zero or negative rates.

Japan’s real gross domestic product (GDP), which measures the value of a country’s products and services, for the period April to June will be released on Wednesday.

The yield on the 10-year Treasury note fell to 3.90% from 3.94% on Friday evening. The yield on the two-year Treasury note, which more closely tracks expectations for Fed action, fell to 4.01% from 4.06%.

On Wall Street, while most stocks fell, Nvidia’s 4.1% gain helped offset many of those losses. Because it’s one of the largest U.S. stocks by value, Nvidia’s moves carry extra weight on the S&P 500 and other indices.

In conclusion, S&The P 500 rose less than a quarter point, or 0.23, to 5,344.39. The Dow Jones fell 140.53 to 39,357.01 and the Nasdaq Composite gained 35.31 to 16,780.61.

Several large U.S. companies will report their latest earnings later this week, including Walmart and Home Depot. Most large U.S. companies reported better earnings than analysts expected.

In energy trading, U.S. crude fell 54 cents to $79.52 a barrel. Brent crude, the international standard, fell 53 cents to $81.77 a barrel.

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AP Business Writer Stan Choe contributed to this report.