Toronto Star
· collected 2026-10-07 · by Elaine Kurtenbach The Associated Press
Asian stock markets declined on Wednesday following gains seen in U.S. markets driven by positive corporate earnings reports. The Nikkei 225 dropped 0.9%, while the Kospi and Hang Seng fell 0.9% and 0.6%, respectively. In contrast, the S&P/ASX 200 in Australia slightly increased by 0.1%. Despite economic concerns like high inflation and bond market pressures, U.S. stocks hit new highs; the S&P 500 rose 0.6% to an all-time peak of 7,818.93. Analysts attribute this resilience to strong corporate earnings, particularly in technology and AI sectors, which have exceeded expectations despite economic headwinds.
Written locally by qwen2.5:14b on 2026-10-07,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Shares mostly retreated in Asia on Wednesday after U.S. stocks hit all-time highs, lifted by expectations of fat corporate earnings.
asserted
stocks → retreat → earnings
U.S. futures were little changed and oil prices advanced.
asserted
prices → advance → ?
In Tokyo, the Nikkei 225 lost 0.9% to 70,284.81, while the Kospi in South Korea also shed 0.9%, to 6,876.76.
asserted
Kospi → lose → 6,876.76
Hong Kong’s Hang Seng fell 0.6% to 24,129.96 and Taiwan’s Taiex edged 0.2% lower.
asserted
Taiex → fall → 24,129.96
Markets in Shanghai were closed for a national holiday.
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Markets → close → holiday
In Australia, the S&P/ASX 200 edged 0.1% higher to 8,740.10.
asserted
ASX → edge → 8,740.10
On Tuesday, U.S. stocks forayed into new heights despite an array of challenges.
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stocks → foray → challenges
The S&P 500 climbed 0.6% to a record of 7,818.93, topping its all-time high set in August.
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S&P → climb → August
Despite worries over the Iran war, high inflation and pressures from the bond market, the index at the heart of many 401(k) accounts has soared 23% since hitting a trough in late March.
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index → soar → March
The Dow Jones Industrial Average added 0.5% to 51,521.28, while the Nasdaq composite tacked 0.4% onto its own all-time high set the day before, closing at 27,599.79.
asserted
composite → add → 27,599.79
“The rally reflected confidence that corporate earnings, particularly across technology and AI-related sectors, can withstand elevated energy costs and restrictive interest rates,” Ng Jing Wen of Mizuho Bank said in a commentary.
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Wen → reflect → commentary
“The resilience suggests investors continue to prioritize earnings momentum over near-term inflation risks,” she said.
uncertain
she → suggest → risks
Record-high stock prices are helping investors feel better about their finances, or at least less bad, while Americans are generally feeling discouraged about keeping up with the fast-rising cost of living.
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Americans → help → living
Many of the fears that sent the U.S. stock market to its bottom in March have indeed come true.
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that → send → March
Oil prices are high because of the war with Iran, which has made inflation worse.
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inflation → make → Iran
Yields have cranked higher in the bond market, which threatens to slow the economy by making it more expensive for everyone to borrow money.
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everyone → crank → money
And Americans broadly say they’re feeling more pessimistic about the economy and where it’s heading.
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it → say → economy
But one vital source of support has persisted: strong corporate earnings.
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source → persist → support
Lamb Weston, which sells frozen fries and other potato products, said on Tuesday that its profit and revenue during its latest quarter topped its projections, for example.
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profit → sell → example
The results also beat analysts’ expectations, and its stock rallied 7.5%.
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stock → beat → expectations
All kinds of companies are expected to report robust profits for the July through September quarter.
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kinds → expect → quarter
Delta Air Lines will report its third-quarter results on Friday, with several of the country’s biggest banks headlining next week.
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several → report → banks
Analysts expect companies in the S&P 500 to deliver overall growth of nearly 30% in earnings per share from a year earlier, according to data provider FactSet.
uncertain
companies → expect → FactSet
If they’re correct, it would be the third straight quarter of growth better than 25%.
asserted
it → ’re → %
If companies fail to deliver such performances, stock prices could easily fall back from their records.
uncertain
prices → fail → records
Some critics also point to a possible bubble in stocks in the artificial-intelligence industry given how much they have soared in the frenzy around the technology.
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they → point → technology
AI stocks have been a huge force driving the U.S. market to records, including Nvidia’s 28.3% surge so far this year.
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stocks → drive → surge
That’s roughly double the broad market’s gain.
asserted
That → ’ → ?
Bond yields offered some slack on Tuesday after falling back from their highest levels in years or even decades.
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yields → offer → years
The yield on the 10-year Treasury, which is the focal point of the U.S. bond market, eased to 5.28% from 5.31% late Monday.
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which → ease → %
It fell after oil prices steadied somewhat.
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prices → fall → ?
But crude prices rebounded early Wednesday.
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prices → rebound → ?
That’s still below the nearly $110 it was at a few weeks ago.
asserted
it → ’ → 110
U.S. benchmark crude rose 0.9% to $90.21 per barrel.
asserted
crude → rise → barrel
Also early Wednesday, the U.S. dollar rose to 158.44 Japanese yen from 158.10 yen.
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dollar → rise → yen
The euro slipped to $1.1238 from $1.1260.
asserted
euro → slip → 1.1260
AP Business Writer Stan Choe in New York contributed to this report.
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Choe → contribute → report
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