AP

Asian stocks down after US inflation fuels rate hike fears

Jul 12, 2022, 10:42 PM | Updated: Jul 13, 2022, 9:18 pm

BEIJING (AP) — Asian stock markets rose Thursday despite a record-setting U.S. inflation report that pointed to more possible interest rate hikes that investors worry will chill economic growth.

U.S. futures edged lower while oil prices advanced.

Wall Street’s benchmark S&P 500 index lost 0.4% on Wednesday after data showed U.S. consumer inflation accelerated to 9.1% in June over a year earlier from May’s 8.6%. That was despite three rate hikes this year by the Federal Reserve.

Investors worry aggressive action by central banks to cool inflation that is at four-decade highs might derail global economic growth.

“Growth fears are hitting the markets harder than inflation concerns,” said Stephen Innes of SPI Asset Management in a report.

The Shanghai Composite Index picked up 0.3% to 3,294.50 while Tokyo’s Nikkei 225 gained 0.7% to 26,665.09.

Electronics manufacturer Panasonic Holdings ‘ shares rose 1.1% after the company announced plans for a multibillion-dollar mega-factory to produce electric vehicle batteries for Tesla and other carmakers in the U.S. state of Kansas.

The Hang Seng in Hong Kong advanced 0.3% to 20,855.29.

Sydney’s S&P-ASX 200 added 0.4% to 6,646.60 after official data showed employment rose more than expected in June.

The Kospi in Seoul edged 0.1% higher to 2,330.74. New Zealand and Jakarta advanced while Singapore declined.

Apart from the Federal Reserve, central banks in Britain, South Korea and some other countries also have hiked rates to cool surging prices. The European Central Bank says it has similar plans.

With inflation still untamed, traders expect another Fed rate hike this month, probably matching last month’s 0.75-percentage-point rise, the biggest in 28 years and three times the usual margin.

Fed officials say a recession is possible but not certain. They point to a strong U.S. job market despite higher borrowing costs.

On Wall Street, the S&P fell to 3,801.78. The Dow Jones Industrial Average fell 0.7% to 30,772.79, and the Nasdaq composite dropped 0.2% to 11,247.58.

Traders are looking ahead to the latest quarterly results from big U.S. companies in the next few weeks.

In energy markets, benchmark U.S. crude gained 54 cents to $96.84 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 46 cents to $96.30 on Wednesday. Brent crude, the price basis for international oil trading, advanced 67 cents to $100.24 per barrel in London. It added 8 cents the previous session to $99.57 a barrel.

The dollar rose to 138.02 yen from Wednesday’s 137.32 yen. The euro declined to $1.0035 from $1.0062.

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

AP

FILE - Crystal Baziel holds the Pan-African flag Monday, June 19, 2023, during Reedy Chapel A.M.E C...

Associated Press

The beginner’s guide to celebrating Juneteenth

For more than one-and-a-half centuries, the Juneteenth holiday has been sacred to many Black communities. It marks the day in 1865 enslaved people in Galveston, Texas found out they had been freed — after the end of the Civil War, and two years after President Abraham Lincoln’s Emancipation Proclamation. Since it was designated a federal […]

1 day ago

A Boeing 737 Max suffered damage to parts of the plane's structure after it went into a “Dutch ro...

Associated Press

Plane that did ‘Dutch roll’ on flight from Phoenix suffered structural damage, investigators say

A Boeing 737 Max suffered damage to parts of the plane's structure after it went into a “Dutch roll” during a flight from Phoenix last month.

6 days ago

This photo provided by Randy Shannon shows Mooney Falls on the Havasupai reservation outside the vi...

Associated Press

Dozens report illness after trips to waterfalls near Grand Canyon

Dozens of hikers say they fell ill during trips to a popular Arizona tourist destination that features towering blue-green waterfalls deep in a gorge neighboring Grand Canyon National Park.

6 days ago

Mugshot of Rudy Giuliani, who was processed Monday, June 10, 2024, in the Arizona fake electors cas...

Associated Press

Rudy Giuliani posts $10K cash bond after being processed in Arizona fake electors case

Rudy Giuliani, a former New York City mayor and Donald Trump attorney, was processed Monday in the Arizona fake electors case.

9 days ago

FILE - White House former chief of staff Mark Meadows speaks with reporters at the White House, Wed...

Associated Press

Former Trump chief of staff Mark Meadows pleads not guilty in Arizona fake elector case

Former Donald Trump presidential chief of staff Mark Meadows and Trump 2020 Election Day operations director Michael Roman pleaded not guilty Friday in Phoenix to nine felony charges for their roles in an effort to overturn Trump's Arizona election loss to Joe Biden.

13 days ago

deadly heat wave last summer...

Associated Press

After a deadly heat wave last summer, metro Phoenix is changing tactics

Fresh memories of the deadly heat wave last summer have led Arizona authorities to launch new tactics ahead of summer 2024.

23 days ago

Sponsored Articles

...

Sanderson Ford

3 new rides for 3 new road trips in Arizona

It's time for the Sanderson Ford Memorial Day sale with the Mighty Fine 69 Anniversary, as Sanderson Ford turned 69 years old in May.

...

Condor Airlines

Condor Airlines can get you smoothly from Phoenix to Frankfurt on new A330-900neo airplane

Adventure Awaits! And there's no better way to experience the vacation of your dreams than traveling with Condor Airlines.

...

DISC Desert Institute for Spine Care

Sciatica pain is treatable but surgery may be required

Sciatica pain is one of the most common ailments a person can face, and if not taken seriously, it could become one of the most harmful.

Asian stocks down after US inflation fuels rate hike fears