AP

Asian stocks higher ahead of possible US rate hike

Jul 24, 2022, 9:07 PM | Updated: Jul 26, 2022, 1:09 am

BEIJING (AP) — Asian stock markets were mostly higher Tuesday as investors braced for another sharp interest rate hike by the Federal Reserve to cool inflation.

Shanghai, Hong Kong and Seoul advanced. Tokyo edged lower. Oil rose more than $1 per barrel.

Wall Street ended up 0.1% on Monday ahead of this week’s Fed meeting at which officials are expected to announce a rate hike of up to three-quarters of a percentage point, triple the usual margin. That would put the Fed’s benchmark rate in a range of 2.25% to 2.5%, the highest since 2018 before the coronavirus pandemic.

Mixed market reactions suggest investor sentiments are split and optimists hope for a “Fed dial back,” said Tan Boon Heng of Mizuho Bank in a report.

The Shanghai Composite Index rose 0.8% to 3,276.71 while the Nikkei 225 in Tokyo shed less than 0.1% to 27,680.41. The Hang Seng in Hong Kong gained 1.5% to 20,868.29.

Alibaba Group, the world’s biggest e-commerce company, announced plans Tuesday to change the status of its Hong Kong-traded shares to make them more accessible to mainland Chinese buyers.

Alibaba went public in New York in September 2014 and completed a secondary listing in Hong Kong in November 2019. The proposed change would upgrade Alibaba’s Hong Kong status to a primary listing along with New York, making the shares eligible for purchase through mainland brokerages.

The Kospi in Seoul added 0.2% to 2,408.60 after the government reported the South Korean economy grew by a stronger-than-expected 0.7% over the previous quarter in the three months ending in June.

Sydney’s S&P-ASX 200 was 0.1% higher at 6,798.00.

India’s Sensex opened down 0.7% at 55,365.32. New Zealand retreated while Southeast Asian markets gained.

Investors worry aggressive rate hikes by the Fed to contain inflation that is at four-decade highs and similar action by central banks in Europe and Asia might derail global economic growth.

U.S. inflation has accelerated to 9.1%, its highest since 1981.

The U.S. economy is slowing, but healthy hiring shows it isn’t in recession, Treasury Secretary Janet Yellen said Sunday. Fed officials who have publicly supported a rate hike also cite a relatively strong job market as evidence the economy can stand higher borrowing costs.

On Wall Street, the S&P 500 advanced to 3,966.84 Monday. The Dow Jones Industrial Average rose 0.3% to 31,990.04. The Nasdaq Composite fell 0.4% to 11,782.67.

The major indexes are coming off solid gains last week following a mix of mostly better-than-expected reports on corporate profits.

On Monday, Walmart shares fell nearly 10% in after-hours trading after the retail giant lowered its profit outlook for the second quarter and full year. The company said shoppers are cutting back on discretionary items, particularly clothing, that carry higher profit margins.

On Thursday, the Commerce Department is due to release its first estimate of U.S. economic growth in the thee months ending in June. Some forecasters expect a second quarter of contraction after output shrank 1.6% in the three months ending in March.

Also this week, tech heavyweights Apple, Meta, Microsoft and Amazon are due to report results. So are Coca-Cola and McDonald’s.

In energy markets, benchmark U.S. crude rose $1.29 to $97.99 per barrel in electronic trading on the New York Mercantile Exchange. The contract gained $2 to $96.70 on Monday. Brent crude, the price basis for international trading, advanced $1.33 to $101.52 per barrel in London. It added $1.95 the previous session to $105.15.

The dollar declined to 136.49 yen from Monday’s 136.72. The euro rose to $1.0230 from $1.0221.

___

AP Technology Writer Zen Soo contributed.

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

AP

President Joe Biden gestures after speaking to graduating students at the Morehouse College commenc...

Associated Press

Biden tells Morehouse graduates that scenes in Gaza from the Israel-Hamas war break his heart, too

Joe Biden on Sunday offered his most direct recognition of U.S. students' anguish over the Israel-Hamas war.

2 days ago

Rudy Giuliani...

Associated Press

Rudy Giuliani is the final defendant served indictment in Arizona fake elector case

Rudy Giuliani has been served an indictment in Arizona's fake elector case for his role in an attempt to overturn the 2020 election.

3 days ago

Houston storms cause widespread damage on Friday...

Associated Press

Some in Houston facing no power for weeks after storms cause widespread damage, killing at least 4

Houston storms cause widespread damage on Friday, May 17. Thunderstorms hit the southeastern part of Texas, killing at least four people.

4 days ago

Man gets 30 years in prison for attacking ex-Speaker Nancy Pelosi’s husband with a hammer...

Associated Press

Man gets 30 years in prison for attacking ex-Speaker Nancy Pelosi’s husband with a hammer

A man has been sentenced to 30 years in prison for attacking the husband of then-House Speaker Nancy Pelosi with a hammer.

4 days ago

audio from President Joe Biden’s interview about classified documents blocked...

Associated Press

GOP advances Garland contempt charges after White House exerts executive privilege over Biden audio

The move to release audio from President Joe Biden’s interview about classified documents was blocked on Thursday by the White House.

5 days ago

Follow @ktar923...

Sponsored Content by 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.

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.

...

Collins Comfort Masters

Here’s 1 way to ensure your family is drinking safe water

Water is maybe one of the most important resources in our lives, and especially if you have kids, you want them to have access to safe water.

...

Fiesta Bowl Foundation

The 51st annual Vrbo Fiesta Bowl Parade is excitingly upon us

The 51st annual Vrbo Fiesta Bowl Parade presented by Lerner & Rowe is upon us! The attraction honors Arizona and the history of the game.

Asian stocks higher ahead of possible US rate hike