AP

Asian stocks follow Wall St lower amid inflation pressure

Sep 14, 2022, 11:58 PM | Updated: Sep 15, 2022, 10:53 pm

BEIJING (AP) — Asian stock markets followed Wall Street lower on Friday after higher-than-expected U.S. inflation dashed hopes the Federal Reserve might ease off more interest rate hikes.

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

Wall Street’s benchmark S&P 500 index lost 1.1% on Thursday, adding to declines since this week’s release of government data showing inflation stayed near a four-decade high in August despite four interest rate hikes this year to slow the economy.

On Thursday, U.S. government data showed unemployment claims last week declined while August consumer sales rose. That gives ammunition to Federal Reserve officials who say the economy can tolerate more rate hikes.

Wall Street’s decline indicates “no sign of relief for risk sentiments” while the job market data “provided the go-ahead for further tightening” in monetary policy, Yeap Jun Rong of IG said in a report.

The Shanghai Composite index lost 0.7% to 3,178.31 and the Nikkei 225 in Tokyo sank 1.1% to 27,568.68. The Hang Seng in Hong Kong retreated 0.8% to 18,800.78.

The Kospi in Seoul shed 0.6% to 2,386.81 and Sydney’s S&P-ASX 200 was 1.2% lower at 6,762.00. Singapore gained less than 0.1% while New Zealand and other Southeast Asian markets declined.

On Wall Street, the S&P 500 declined to 3,901.35 after the Labor Department said the number of applications for unemployment benefits last week fell to a four-month low.

The market benchmark is down 4.1% for the week following the biggest pullback in two years on Tuesday after the government reported U.S. consumer prices rose 8.3% from a year earlier and 0.1% compared with July.

The overall figure was down from June’s 9.1% peak, but core inflation, which strips out volatile food and energy prices to give a clearer picture of the trend, rose to 0.6% over the previous month, up from July’s 0.3% increase.

Traders worry aggressive interest rate hikes by the Federal Reserve and central banks in Europe and Asia to control price rises might derail global economic growth. Two of the Fed’s rate hikes this year have been by 0.75 percentage points, triple its usual margin, and traders expect a similar increase this month.

Fed chair Jerome Powell said in August that rates would stay elevated for some time until the U.S. central bank is sure inflation is under control.

The Dow Jones Industrial Average fell 0.6% to 30,961.82. The Nasdaq slid 1.4% to 11,552.36.

Retail sales data gave a mixed view of how American consumers are coping with inflation.

Sales rose by an unexpectedly strong 0.3% in August after falling 0.4% in July.

Railroad operators mostly edged higher after a tentative labor agreement was reached, averting a disruptive strike. Union Pacific rose 0.2% and Norfolk Southern gained 0.3%. CSX fell 3.4%.

In energy markets, benchmark U.S. crude rose 15 cents to $85.25 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell $3.38 on Thursday to $85.10. Brent crude, the price basis for international oil trading, gained 23 cents to $91.07 per barrel in London. It lost $3.26 the previous session to $90.84.

The dollar edged down to 143.44 yen from Thursday’s 143.49 yen. The euro gained to 99.94 cents from 99.91 cents.

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

AP

southern Arizona rancher George Alan Kelly...

Associated Press

Trial of a southern Arizona rancher charged in fatal shooting of unarmed migrant goes to the jury

Closing arguments were made against a southern Arizona rancher accused of shooting an undocumented migrant on his land to death on Thursday.

11 hours ago

Donald Trump's hush money trial: 12 jurors selected...

Associated Press

Although 12 jurors were picked for Donald Trump’s hush money trial, selection of alternates is ongoing

A jury of 12 people was seated Thursday in former President Donald Trump's hush money trial. The proceedings are close to opening statements.

13 hours ago

A anti-abortion supporter stands outside the House chamber, Wednesday, April 17, 2024, at the Capit...

Associated Press

Democrats clear path to bring proposed repeal of Arizona’s near-total abortion ban to a vote

Democrats in the Arizona Senate cleared a path to bring a proposed repeal of the state’s near-total ban on abortions to a vote.

1 day ago

Most Americans are sleepy new Gallup poll finds...

Associated Press

Most Americans say they don’t get enough sleep, according to new Gallup poll

A new Gallup poll found that most Americans are sleepy — or, at least, they say they are. Multiple factors play into this.

3 days ago

Near-total abortion ban in Arizona dates back to Civil War era...

Associated Press

Near-total abortion ban dates back to 1864, during the Civil War, before Arizona was a state

The near-total abortion ban resurrected last week by the Arizona Supreme Court dates to 1864, when settlers were encroaching on tribal lands.

4 days ago

Tracy Toulou...

Associated Press

How to tackle crime in Indian Country? Empower tribal justice, ex-Justice Department official says

A recently retired director of the Justice Dept. says the federal government hasn't given tribal justice systems equal recognition.

4 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.

...

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.

...

Collins Comfort Masters

Avoid a potential emergency and get your home’s heating and furnace safety checked

With the weather getting colder throughout the Valley, the best time to make sure your heating is all up to date is now. 

Asian stocks follow Wall St lower amid inflation pressure