Asian stocks follow Wall St down after Fed inflation report

Aug 17, 2022, 12:47 AM | Updated: Aug 18, 2022, 12:11 am
FILE - Pedestrians walk past the New York Stock Exchange, on July 8, 2022, in New York.  Stocks are...

FILE - Pedestrians walk past the New York Stock Exchange, on July 8, 2022, in New York. Stocks are opening lower on Wall Street Wednesday, Aug. 17, as traders absorb some discouraging news about how much Americans are spending. (AP Photo/John Minchillo, file)

(AP Photo/John Minchillo, file)

BEIJING (AP) — Asian stock markets followed Wall Street lower Thursday after the Federal Reserve said U.S. inflation is too high, suggesting support for more aggressive interest rate hikes.

Shanghai, Tokyo, Hong Kong and Sydney declined. Oil prices edged higher.

Wall Street’s benchmark S&P 500 index lost 0.7% on Wednesday, ending a three-day series of rises, after notes from the Fed’s July 26-27 board meeting showed members thought inflation still is “unacceptably high” despite signs U.S. economic growth is weakening. It said the board saw “little evidence” inflation pressures are subsiding.

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

The Fed notes raised “the prospects of further tightening” even if the pace of hikes slows, while other investors see possible “excessive tightening dragging growth,” said Venkateswaran Lavanya of Mizuho Bank in a report.

The Shanghai Composite Index lost 0.5% to 3,276.62 and the Nikkei 225 in Tokyo sank 0.9% to 28,967.91. The Hang Seng in Hong Kong shed 0.5% to 19,821.28.

The Kospi in Seoul gave up 0.4% to 2,507.31 and Sydney’s S&P-ASX 200 retreated 0.3% to 7,109.20.

New Zealand and Bangkok declined while Singapore and Jakarta advanced.

On Wall Street, the S&P 500 fell to 4,274.04. The loss wiped out the week’s gains and left the index down 0.1% since Monday.

The Dow Jones Industrial Average sank 0.5% to 33,980.32 and the Nasdaq slid 1.3%. to 12,938.12.

The Commerce Department reported July retail sales were flat compared with the previous month, defying predictions of a slight increase. Retailers have warned high inflation will discourage consumers from spending on non-essentials.

Retail chain Target fell 2.7% after reporting a nearly 90% plunge in second quarter profits. Children’s clothing and accessories chain Children’s Place fell 11% after reporting a surprise loss due to supply problems and pressure from inflation.

Technology and communications stocks also fell.

The Fed notes Wednesday made clear the board plans to keep raising interest rates but gave no indication when or by how much.

The U.S. central bank has hiked its benchmark lending rate twice this year by 0.75 percentage points, triple its usual margin. Forecasters say another hike of the same size is possible at the Fed’s September meeting, though the likelihood has declined as data show the economy weakening.

In energy markets, benchmark U.S. crude rose 8 cents to $88.19 per barrel in electronic trading on the New York Mercantile Exchange. It jumped $1.58 to $88.11 on Wednesday. Brent crude, the price basis for international trading, gained 11 cents to $93.76 per barrel in London. It surged $1.31 the previous session to $93.65.

The dollar edged up to 135.06 yen from Wednesday’s 135.05 yen. The euro rose to $1.0183 from $1.0169.

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

AP

FILE - People stand on the destroyed bridge to Pine Island as they view the damage in the aftermath...
Associated Press

Biden to focus on hurricane victims in Florida, not politics

WASHINGTON (AP) — President Joe Biden will visit hurricane-ravaged Florida with a pledge that federal, state and local governments will work as one to help rebuild homes, businesses and lives — putting politics on mute for now to focus on those in need. Hurricane Ian has resulted in at least 84 people confirmed dead, including […]
8 hours ago
Associated Press

NC judge suspends sheriff taped disparaging Black employees

WHITEVILLE, N.C. (AP) — A North Carolina judge has suspended a sheriff who was recorded calling Black employees by derogatory names and saying they should be fired. The suspension of Columbus County Sheriff Jody Greene on Tuesday comes after District Attorney Jon David sought his removal alleging that Greene engaged in racial profiling of employees […]
8 hours ago
Joseph Morrison, center back, appears before Jackson Circuit Judge Thomas Wilson for trial in a cou...
Associated Press

3 accused of assisting governor kidnapping plot stand trial

JACKSON, Mich. (AP) — Jurors in the trial of three men charged in connection with a 2020 anti-government plot to kidnap Michigan Gov. Gretchen Whitmer were told Wednesday about the formation and actions of a paramilitary group the government says trained as part of the scheme. Assistant Attorney General Bill Rollstin presented the Wolverine Watchmen […]
8 hours ago
FILE — Nobel prize-winning author John Steinbeck, right, admires a prize-winning poster by his so...
Associated Press

Steinbeck’s letter to son on love, ‘the best thing,’ on sale

BOSTON (AP) — A tender and touching letter that author John Steinbeck penned to his teenage son, offering fatherly advice after the young man confided that he was in love for the first time, is going up for auction. Boston-based RR Auction says the handwritten draft of a letter to his eldest son, Thomas — […]
8 hours ago
Associated Press

Michigan board approves $400 million to advance EV batteries

LANSING, Mich. (AP) — A Michigan economic development board approved more than $400 million in state incentives Wednesday for two battery facilities estimated to cost $4 billion and bring 4,500 jobs to the state. Pending approval by state lawmakers, the incentive packages would draw from a fund created less than a year ago to help […]
8 hours ago
This photo, provided by the New York City Department of Transportation shows Britain's Princess Ann...
Associated Press

Princess Anne takes the Staten Island ferry to Manhattan

NEW YORK (AP) — Princess Anne took a ride on the Staten Island Ferry during a visit to New York City. The sister of Britain’s King Charles III was ushered to the ferry’s pilothouse as the Manhattan-bound ship crossed the New York Harbor on Tuesday escorted by police boats. A fireboat greeted the ferry with […]
8 hours ago

Sponsored Articles

...
SCHWARTZ LASER EYE CENTER

Key dates for Arizona sports fans to look forward to this fall

Fall brings new beginnings in different ways for Arizona’s professional sports teams like the Cardinals and Coyotes.
...
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.
(Courtesy Condor)...
Condor Airlines

Condor Airlines shows passion for destinations from Sky Harbor with new-look aircraft

Condor Airlines brings passion to each flight and connects people to their dream destinations throughout the world.
Asian stocks follow Wall St down after Fed inflation report