AP

Asian stocks mixed after Wall St declines on growth worries

Jun 22, 2022, 12:12 AM | Updated: 11:03 pm

BEIJING (AP) — Asian stock markets were mixed Thursday after Wall Street edged lower amid fears higher interest rates will chill global economic growth.

Shanghai and Hong Kong advanced, while Tokyo and Seoul declined. Oil prices fell more than $2 per barrel to near $100.

Federal Reserve Chair Jerome Powell, talking to members of Congress, said Wednesday that while the U.S. central bank doesn’t need to “provoke a recession,” one is a possibility due to rate hikes to cool inflation that is running at four-decade highs.

Wall Street’s benchmark S&P 500 index lost 0.1% after swinging between a gain of 1% and a loss of 1.3% during the day.

“The market now accepts recession is a risk, having been in total denial,” Michael Every of Rabobank said in a report.

The Shanghai Composite Index rose 0.6% to 3,285.99 while the Nikkei 225 in Tokyo sank 0.3% to 26,059.39. The Hang Seng in Hong Kong gained 1% to 21,209.09.

The Kospi in Seoul retreated 1.5% to 2,308.20 while Sydney’s S&P-ASX 200 rose 0.2% to 6,523.50. New Zealand, Bangkok and Singapore advanced while Jakarta fell.

Central banks in the United Sates and Europe are trying to stop inflation that is running at four-decade highs.

Investors worry that will derail global growth. Powell, speaking before the Senate Banking Committee, acknowledged the risks but said it is “absolutely essential” that the Fed restore stable prices.

“We now anticipate the most aggressive and synchronized tightening cycle” by global central banks since the 1980s, said Jennifer McKeown of Capital Economics in a report. “The key question now is not whether central banks will slam on the brakes, but what might stop them?”

The S&P 500 declined to 3,759.89. Stocks in the index were evenly split between gainers and decliners.

The Dow Jones Industrial Average gave up 0.2% to 30,483.13. The Nasdaq composite slipped 0.2% to 11,053.08.

The S&P 500 is in a bear market, or down more than 20% from its Jan. 3 peak. It has fallen in 10 of the past 11 weeks.

Last week, the Fed raised its benchmark rate by three quarters of a percentage point, three times its usual margin and the biggest increase in nearly three decades.

Fed policymakers say they anticipate more rate hikes this year and next and at a quicker tempo than previously forecast. They say the central bank’s key rate should reach 3.8% by the end of 2023, its highest level in 15 years.

Surging prices have soured consumer sentiment in the United States, the world’s biggest market. Retail spending is sagging.

Inflation fears have been aggravated by a spike in prices of oil, wheat and other commodities due to Russia’s attack on Ukraine.

Oil prices fell sharply for a second Wednesday, suggesting traders anticipate weaker demand as economic activity cools.

Benchmark U.S. crude tumbled $2.68 to $103.51 per barrel in electronic trading on the New York Mercantile Exchange. The contract declined $3.33 on Wednesday to $106.19. Brent crude, the price basis for international trading, retreated $2.43 to $106.22 per barrel in London. It sank $3.12 the previous session to $108.65.

The dollar fell to 135.34 yen from Wednesday’s 136.28 yen. The euro rose to $1.0570 from $1.0566.

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

AP

Biden to require more gun dealers to run background checks....

Associated Press

Biden administration will require thousands more gun dealers to run background checks on buyers

New Biden rule to require thousands more firearms dealers across the United States will have to run background checks on buyers.

15 hours ago

Instagram blurring out nudity with new app tools....

Associated Press

Instagram blurring nudity in messages to protect teens from sexual extortion

Instagram says it’s deploying new tools to protect young people and combat sexual extortion by blurring nudity.

16 hours ago

Abortion advocates protest in Washington, D.C....

Associated Press

Abortion services expected to ramp up in nearby states after Arizona decision

Doctors and clinic leaders said there'll be a scramble across the Southwest for abortion care due to Tuesday's decision in Arizona.

17 hours ago

FILE - Cruise AV, General Motor's autonomous electric Bolt EV, is seen on Jan. 16, 2019, in Detroit...

Associated Press

Cruise to restart driverless operation for data collection in Phoenix

Cruise said Tuesday that the resumption of human-driven vehicles to create maps and gather road information will begin in Phoenix.

3 days ago

George Alan Kelly enters court for his preliminary hearing in Nogales Justice Court in Nogales, Ari...

Associated Press

Jurors to visit property where Arizona rancher killed migrant

Jurors in the case of an Arizona rancher charged with fatally shooting a migrant on his property will visit the ranch near the border.

4 days ago

Demonstrators gather outside federal court buildings in New Orleans on Wednesday, April 3, 2024, to...

Associated Press

Texas asks court to decide if the state’s migrant arrest law went too far

The Justice Department argued Wednesday that the Texas migrant arrest law is trying to usurp the federal government’s authority.

9 days ago

Sponsored Articles

...

DESERT INSTITUTE FOR SPINE CARE

Desert Institute for Spine Care is the place for weekend warriors to fix their back pain

Spring has sprung and nothing is better than March in Arizona. The temperatures are perfect and with the beautiful weather, Arizona has become a hotbed for hikers, runners, golfers, pickleball players and all types of weekend warriors.

...

Midwestern University

Midwestern University Clinics: transforming health care in the valley

Midwestern University, long a fixture of comprehensive health care education in the West Valley, is also a recognized leader in community health care.

(KTAR News Graphic)...

Boys & Girls Clubs

KTAR launches online holiday auction benefitting Boys & Girls Clubs of the Valley

KTAR is teaming up with The Boys & Girls Clubs of the Valley for a holiday auction benefitting thousands of Valley kids.

Asian stocks mixed after Wall St declines on growth worries