Asian stocks fall as investors await U.S. profits, inflation

Apr 10, 2022, 10:49 PM | Updated: Apr 11, 2022, 11:53 pm

BEIJING (AP) — Asian stock markets fell again Tuesday as investors waited for U.S. inflation data amid unease about higher interest rates, Chinese efforts to contain coronavirus outbreaks and Russia’s war on Ukraine.

Shanghai, Tokyo, Hong Kong and Seoul fell. Oil prices rose more than $2 per barrel.

Wall Street’s benchmark S&P 500 index slid 1.7% on Monday as investors waited for a new round of corporate results to see how profits are affected by inflation that is at a four-decade high.

Markets are uneasy about plans by the Federal Reserve and other central banks to try to cool inflation by rolling back ultra-low interest rates. Russia’s attack on Ukraine and China’s decision to shut down most businesses in Shanghai, its commercial capital, to fight coronavirus outbreaks have added to the anxiety.

“Worries linger about the COVID-19 situation,” said Anderson Alves of ActivTrades in a report. “Markets are eyeing the situation in Ukraine for signs that could trigger further risk-off price action.”

The Shanghai Composite Index slumped 0.7% to 3,146.11 and the Nikkei 225 in Tokyo lost 1.4% to 26,451.13. The Hang Seng in Hong Kong shed 0.8% to 21,037.19.

The Kospi in Seoul gave up 1% to 2,665.46 and Sydney’s S&P-ASX 200 retreated 0.5% to 7,447.90.

Jakarta advanced while New Zealand and other Southeast Asia markets declined.

Later Tuesday, the Labor Department was due to report March consumer prices. Investors worry inflation might be strong enough to encourage consumers to cut spending, which would likely mean a sharper slowdown in economic growth than expected.

On Monday, the S&P 500 fell to 4,412.53 as all sectors in the index declined. The Dow Jones Industrial Average fell 1.2% to 34,308.08. The Nasdaq slid 2.2% to 13,411.96.

Microsoft fell 3.9% and Apple shed 2.6%.

Investors are anticipating a more aggressive shift from the Federal Reserve as it tries to rein in rising inflation. The central bank has already announced a quarter-percentage point raise of its key interest rate.

Fed officials indicated in minutes from last month’s meeting they were considering raising the U.S. benchmark rate by double the normal amount at upcoming meetings. They also indicated they would shrink the Fed’s bond holdings, which would push up long-term borrowing rates.

Oil prices have fallen back on expectations of weaker Chinese demand after most businesses in Shanghai were shut down and controls imposed on other industrial centers to contain coronavirus outbreaks. Prices spiked above $130 per barrel last month on anxiety about possible disruption in Russian supplies.

Automakers and other manufacturers in China are reducing production after authorities tightened restrictions to help stem coronavirus outbreaks in Shanghai and other cities.

Benchmark U.S. crude gained $1.92 to $96.21 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell $3.97 on Monday to $94.29. Brent crude, the price basis for international oil trading, added $1.83 to $100.31 per barrel in London. It fell $4.30 the previous session to $98.48.

The dollar declined to 125.36 Japanese yen from Monday’s 125.46 yen. The euro declined to $1.0876 from $1.0890.

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


(Facebook Photo/Superior Court of Arizona in Yavapai County)...
Associated Press

Arizona judge has cases reassigned following DUI arrest

The Arizona Supreme Court has ruled that all cases currently assigned to a Yavapai County Superior Court judge recently arrested on suspicion of extreme DUI will be reassigned to other judges.
4 days ago
Haitian migrant Gerson Solay, 28, carries his daughter, Bianca, as he and his family cross into Can...
Associated Press

US, Canada to end loophole that allows asylum-seekers to move between countries

President Joe Biden and Canadian Prime Minister Justin Trudeau on Friday announced a plan to close a loophole to an immigration agreement.
7 days ago
Expert skateboarder Di'Orr Greenwood, an artist born and raised in the Navajo Nation in Arizona and...
Associated Press

Indigenous skateboard art featured on new stamps unveiled at Phoenix skate park

The Postal Service unveiled the “Art of the Skateboard" stamps at a Phoenix skate park, featuring designs from Indigenous artists.
7 days ago
(Facebook Photo/City of San Luis, Arizona)...
Associated Press

San Luis authorities receive complaints about 911 calls going across border

Authorities in San Luis say they are receiving more complaints about 911 calls mistakenly going across the border.
13 days ago
(Pexels Photo)...
Associated Press

Daylight saving time begins in most of US this weekend

No time change is observed in Hawaii, most of Arizona, Puerto Rico, the U.S. Virgin Islands, American Samoa, Guam and the Northern Marianas.
21 days ago
Mexican army soldiers prepare a search mission for four U.S. citizens kidnapped by gunmen in Matamo...
Associated Press

How the 4 abducted Americans in Mexico were located

The anonymous tip that led Mexican authorities to a remote shack where four abducted Americans were held described armed men and blindfolds.
21 days ago

Sponsored Articles

Day & Night Air Conditioning, Heating and Plumbing

Company looking for oldest air conditioner and wants to reward homeowner with new one

Does your air conditioner make weird noises or a burning smell when it starts? If so, you may be due for an AC unit replacement.
Quantum Fiber

How high-speed fiber internet edges out cable for everyday use

In a world where technology drives so much of our daily lives, a lack of high-speed internet can be a major issue.
(Photo via MLB's Arizona Fall League / Twitter)...
Arizona Fall League

Top prospects to watch at this year’s Arizona Fall League

One of the most exciting elements of the MLB offseason is the Arizona Fall League, which began its 30th season Monday.
Asian stocks fall as investors await U.S. profits, inflation