Asian stocks follow Wall St down amid US interest rate fears

Apr 10, 2022, 9:29 PM | Updated: 9:49 pm

BEIJING (AP) — Asian stock markets followed Wall Street lower Monday after the Federal Reserve indicated it might raise interest rates more aggressively to cool U.S. inflation.

Shanghai, Tokyo, Hong Kong and South Korea all declined. Oil fell more than $2 per barrel amid concerns global economic growth might weaken.

Investors are uneasy about possible downward pressure on economic activity from higher interest rates, Russia’s war on Ukraine and China’s efforts to contain coronavirus outbreaks.

Wall Street’s benchmark S&P 500 lost 0.3% on Friday after Fed officials indicated in notes from their last meeting they were considering raising its benchmark rate by double the normal amount at upcoming meetings. They also indicated they are likely to shrink the Fed’s bond holdings, which also might push up commercial borrowing rates.

Investors see “increasing evidence the Federal Reserve will take a more committed approach” to fighting inflation, said Stephen Innes of SPI Asset Management in a report.

The Shanghai Composite Index lost 2.2% to 3,179.32 after inflation accelerated to 1.5% over a year ago in March from the previous month’s 0.9% amid upward pressure on global prices due to uncertainty about Russia’s war on Ukraine.

The Nikkei 225 in Tokyo lost shed 0.7% to 26,793.46 and Hong Kong’s Hang Seng retreated 2.5% to 21,324.05.

The S&P-ASX 200 in Sydney advanced less than 0.1% to 7,482.80. New Zealand and Singapore declined while Indonesia advanced.

On Friday, the S&P 500 declined to 4,488.28 while the Dow Jones Industrial Average rose 0.4% to 34,721.12. Tech stock weakness dragged the Nasdaq composite down 1.3% to 13,711.00.

Investors have been uneasy since Fed officials started saying they would try to cool inflation that is at a four-decade high by rolling back record-low interest rates and other stimulus that is boosting stock prices.

Higher interest rates usually depress economic activity and make safer assets such as bonds more attractive while making stocks look riskier and more expensive.

Some are afraid the Fed, after being accused of reacting too late to rising inflation, might push the brakes too hard and tip the world’s biggest economy into recession. Economists at Deutsche Bank last week forecast a U.S. recession by late next year.

Oil prices have fallen back on expectations of weaker demand after peaking above $130 per barrel last month due to anxiety about disruption of supplies from Russia, the world’s No. 2 exporter.

Meanwhile, in China, automakers and other companies are reducing production due to supply disruptions after authorities imposed stringent anti-disease controls to stop coronavirus outbreaks in Shanghai and other cities.

ACM Research, a supplier of equipment for the semiconductor industry that has operations in Shanghai, fell 6.1% after saying the restrictions will cause a significant hit to its revenue.

In energy markets, benchmark U.S. crude fell $2.16 to $96.10 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose $2.23 to $98.26 on Friday. Brent crude, used as the price basis for international oils, retreated $2.18 to $100.60 per barrel in London. It rose $2.20 the previous session to $102.78 a barrel.

The dollar rose to 124.86 yen from Friday’s 124.37 yen. The euro edged up to $1.0087 from $1.0885.

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

AP

FILE - A man receives the AstraZeneca COVID-19 vaccine at Jabra Hospital in Khartoum, Sudan, Thursd...
Associated Press

Nonprofits launch $100M plan to support local health workers

A new philanthropic project hopes to invest $100 million in 10 countries, mostly in Africa, by 2030 to support 200,000 community health workers, who serve as a critical bridge to treatment for people with limited access to medical care. The Skoll Foundation and The Johnson & Johnson Foundation announced Monday that they donated a total […]
4 hours ago
The cargo ship Polarnet arrives to Derince port in the Gulf of Izmit, Turkey, Monday Aug. 8, 2022. ...
Associated Press

Ship carrying grain from Ukraine arrives in Istanbul

ISTANBUL (AP) — The first of the ships to leave Ukraine under a deal to unblock grain supplies and stave off a potential global food crisis arrived at its destination in Turkey on Monday. The Turkey-flagged Polarnet docked at Derince port in the Gulf of Izmit after setting off from Chornomorsk on Aug. 5 laden […]
4 hours ago
A person walks by a SoftBank shop on Monday, Aug. 8, 2022, in Tokyo. Japanese technology company So...
Associated Press

Japan tech giant SoftBank posts $23 billion quarterly loss

TOKYO (AP) — Japanese technology company SoftBank Group posted a $23.4 billion loss in the April-June quarter as the value of its investments sank amid global worries about inflation and interest rates. SoftBank Group Corp.’s loss of 3.16 trillion yen was a reversal from its 762 billion yen profit in the same quarter a year […]
4 hours ago
Exterior damage from a fire is seen at the Mountain B pub in the Sattahip district of Chonburi prov...
Associated Press

Thai pub owner charged in connection with deadly blaze

BANGKOK (AP) — The owner of a music pub in eastern Thailand where a fire last week killed 15 people and injured more than three dozen others was released on bail when he was brought to court Monday to hear criminal charges against him. Pongsiri Panprasong, owner of the Mountain B pub in Sattahip district […]
4 hours ago
Associated Press

Productivity, consumer prices, Cardinal Health earns

A look at some of the key business events and economic indicators upcoming this week: ECONOMIC BELLWETHER Economists project that U.S. worker productivity fell in the April-June period for the second consecutive quarter. The Labor Department is expected to report Tuesday that nonfarm labor productivity fell in the second quarter at an annual rate of […]
4 hours ago
Liudmila Samsonova, of Russia, poses with the trophy after she won the final at the Citi Open tenni...
Associated Press

Russian tennis players collect 3 titles at US Open tuneups

WASHINGTON (AP) — It was quite a week for Russia’s professional tennis players — four tournaments, three titles. One of them, Liudmila Samsonova, thinks it might not be merely a coincidence that this recent run of success for her, Daria Kasatkina and Daniil Medvedev comes shortly after they were banned from competing at Wimbledon because […]
1 day ago

Sponsored Articles

...
Day & Night Air Conditioning, Heating and Plumbing

Ways to prevent clogged drains and what to do if you’re too late

While there are a variety of ways to prevent clogged drains, it's equally as important to know what to do when you're already too late.
...
Sanderson Ford

Don’t let rising fuel prices stop you from traveling Arizona this summer

There's no better time to get out on the open road and see what the beautiful state of Arizona has to offer. But if the cost of gas is putting a cloud over your summer vacation plans, let Sanderson Ford help with their wide-range selection of electric vehicles.
...
Day & Night Air Conditioning, Heating and Plumbing

Most plumbing problems can be fixed with regular maintenance

Instead of waiting for a problem to happen, experts suggest getting a head start on your plumbing maintenance.
Asian stocks follow Wall St down amid US interest rate fears