Asian shares mostly lower as Japan preps massive stimulus

Oct 27, 2022, 2:53 AM | Updated: 9:51 pm
People push their bicycle in front of an electronic stock board showing Japan's Nikkei 225 index at...

People push their bicycle in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm Friday, Oct. 28, 2022, in Tokyo. Shares were mostly lower in Asia on Friday after a mixed session on Wall Street, where tech sector losses offset gains in other parts of the market. (AP Photo/Eugene Hoshiko)

(AP Photo/Eugene Hoshiko)

Shares were mostly lower in Asia on Friday after a mixed session on Wall Street, where tech sector losses offset gains in other parts of the market.

Tokyo’s benchmark slipped as the government was preparing about $490 billion in stimulus spending to help the world’s No. 3 economy cope with inflation. As expected, the Bank of Japan wrapped up a policy meeting by keeping its ultra-lax monetary policy unchanged even as it forecast higher inflation.

The Nikkei 225 index lost 0.5% to 27,210.03 while the Hang Seng in Hong Kong sank 2.3% to 15,069.69. The Shanghai Composite index shed 0.8% to 2,958.25.

The Kospi in Seoul declined 0.4% to 2,278.64. Australia’s S&P/ASX 200 dropped 0.8% to 6,788.00.

The economic stimulus package due for approval Friday includes government funding of about 29 trillion yen ($200 billion) in subsidies and other measures to help soften the burden of costs from rising utility rates and food prices. It is also designed to help shore up support for Prime Minister Fumio Kishida, whose popularity has taken a beating due to a scandal over ties between the ruling Liberal Democratic Party and the South Korea-based Unification church.

Thursday on Wall Street, the S&P 500 fell 0.6%, with about 44% of stocks within the benchmark index losing ground. It closed at 3,807.30.

The tech-heavy Nasdaq fell 1.6% to 10,792.67, while the Dow Jones Industrial Average rose 0.6% to 32,033.28.

Smaller company stocks held up better than the broader market. The Russell 2000 index added 0.1% to 1,806.32.

Facebook’s parent company, Meta Platforms, plummeted 24.6% for the biggest drop in the S&P 500 after reporting a second straight quarter of revenue decline amid falling advertising sales and stiff competition from TikTok. It joined other tech and communications stocks, such as Google’s parent company, Alphabet, and Microsoft, in reporting weak results and worrisome forecasts over advertising demand. Alphabet fell 2.9% and Microsoft slid 2%.

Amazon slid 19% in after-hours trading after the retail giant issued an estimate for sales in the last quarter of the year came in well below analysts’ forecasts. The stock fell 4.1% in regular trading before the release of its latest quarterly results.

Construction equipment maker Caterpillar jumped 7.7% after it handily beat analysts’ third-quarter profit forecasts. The big gain helped boost the 30-company Dow.

Another pullback in long-term Treasury yields helped support stocks in companies that weren’t reporting quarterly results. The yield on the 10-year Treasury, which influences mortgage rates, fell to 3.91% from 4.01% late Wednesday. The two-year yield fell to 4.30% from 4.42%.

Excluding the Nasdaq, the major indexes are on pace for weekly gains. And the S&P 500 remains solidly on track to end October in the green.

Markets got some encouraging economic news Thursday as the government reported the U.S. economy returned to growth last quarter, expanding 2.6%. That marks a turnaround after the economy contracted during the first half of the year.

The economy has been under pressure from stubbornly hot inflation and the Federal Reserve’s efforts to raise interest rates in order to cool prices. The central bank is trying to slow economic growth through rate increases, but the strategy risks going too far and brining on a recession.

The rising interest rates have made borrowing more difficult, particularly with mortgage rates. Average long-term U.S. mortgage rates topped 7% for the first time in more than two decades this week.

Central banks around the world also have been raising interest rates in an effort to tame inflation. The European Central Bank piled on another outsized interest rate hike on Thursday. Markets in Europe were mixed.

Wall Street has more earnings to review Friday, including Exxon Mobil, Chevron and Charter Communications.

Meanwhile, S&P Dow Jones Indices said Thursday that insurer Arch Capital Group will replace Twitter in the S&P 500 index before the opening of trading on Tuesday. The move comes ahead of Elon Musk’s acquisition of Twitter in a transaction expected to close Friday.

In other trading, the dollar fell to 146.20 yen from 136.31 late Thursday. The euro

___

AP Business Writers Damian J. Troise and Alex Veiga contributed.

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

AP

A Palestinian flag and a poster showing Ammar Adili, 22, who was shot and killed by an Israeli bord...
Associated Press

Palestinians say killing caught on video was unjustified

HAWARA, West Bank (AP) — A makeshift sidewalk memorial with a Palestinian flag and a mourning notice paid tribute Saturday to a 22-year-old Palestinian whose death at the hands of an Israeli border police officer — four pistol shots from close range — was captured on widely shared amateur video. A day after the shooting […]
22 hours ago
FILE - A flu vaccine is readied at the L.A. Care and Blue Shield of California Promise Health Plans...
Associated Press

Flu season worsens as 44 states report high activity

NEW YORK (AP) — The U.S. flu season keeps getting worse. Health officials said Friday that 7.5% of outpatient medical visits last week were due to flu-like illnesses. That’s as high as the peak of the 2017-18 flu season and higher than any season since. The annual winter flu season usually doesn’t get going until […]
22 hours ago
Secretary of Defense Lloyd Austin introduces the B-21 Raider stealth at Northrop Grumman Friday, De...
Associated Press

Keep COVID military vaccine mandate, defense chief says

ABOARD A U.S. MILITARY AIRCRAFT (AP) — Defense Secretary Lloyd Austin said he wants to keep the military’s COVID-19 vaccine mandate in place to protect the health of the troops, as Republican governors and lawmakers press to rescind it. This past week more than 20 Republican governors sent a letter to President Joe Biden asking […]
22 hours ago
Associated Press

Family says coyote attacked toddler outside LA home

LOS ANGELES (AP) — A coyote ambushed and injured a 2-year old girl outside her Los Angeles home in a daytime attack before her father chased the animal off, her family said. Home security video obtained by KTLA-TV shows the animal grab and drag the toddler across her lawn and sidewalk, just seconds after her […]
22 hours ago
FILE -  Rep. Jim Kolbe, R-Ariz, speaks during a press conference at the American University of Beir...
Associated Press

Longtime Arizona GOP Rep. Jim Kolbe dies at 80

PHOENIX (AP) — Jim Kolbe, a Republican congressman who represented a heavily Democratic region of Arizona for more than two decades and was a proponent of gay rights, has died. He was 80. Arizona Gov. Doug Ducey said in a statement that Kolbe died Saturday. Ducey ordered flags lowered until sunset Sunday. Kolbe served in […]
22 hours ago
Associated Press

Fan buying famed ‘Goonies’ house in Oregon, listed for $1.7M

ASTORIA, Ore. (AP) — The listing agent for the Victorian home featured in the “The Goonies” film in Astoria, Oregon, said this week the likely new owner is a fan of the classic coming-of-age movie about friendships and treasure hunting, and he promises to preserve and protect the landmark. The 1896 home with sweeping views […]
22 hours ago

Sponsored Articles

...
Day & Night Air Conditioning, Heating and Plumbing

Prep the plumbing in your home just in time for the holidays

With the holidays approaching, it's important to know when your home is in need of heating and plumbing updates before more guests start to come around.
...
Quantum Fiber

Stream 4K and more with powerful, high-speed fiber internet

Picking which streaming services to subscribe to are difficult choices, and there is no room for internet that cannot handle increased demands.
...
Quantum Fiber

How high-speed fiber internet can improve everyday life

Quantum Fiber supplies unlimited data with speeds up to 940 mbps, enough to share 4K videos with coworkers 20 times faster than a cable.
Asian shares mostly lower as Japan preps massive stimulus