Asian shares extend losses after Wall Street decline

Dec 27, 2022, 11:53 PM | Updated: Dec 28, 2022, 9:53 pm
Currency traders stand near the screens showing the foreign exchange rates at a foreign exchange de...

Currency traders stand near the screens showing the foreign exchange rates at a foreign exchange dealing room in Seoul, South Korea, Thursday, Dec. 29, 2022. Shares slipped in Asia on Thursday after benchmarks fell more than 1% on Wall Street in the middle of a mostly quiet and holiday-shortened week. (AP Photo/Lee Jin-man)

(AP Photo/Lee Jin-man)

BANGKOK (AP) — Shares slipped in Asia on Thursday after benchmarks fell more than 1% on Wall Street in the middle of a mostly quiet and holiday-shortened week.

U.S. futures were mixed and oil prices declined.

Tokyo’s Nikkei 225 index lost 1.3% to 25,990.68.

The Hang Seng in Hong Kong shed 1.1% to 19,681.70, while the Shanghai Composite index was down 0.3% at 3,077.80.

Investors are watching to see how China’s relaxation of its stringent COVID-19 policies, and the outbreaks of infections that have followed, will affect business activity and travel.

One concern is that the massive outbreaks could generate new, potentially vaccine resistant variants of the virus, “leading to knock-on virus surges across the globe, China’s reopening could still mark a positive step over the long run in light of past global attempts in bringing virus cases under control,” Yean Jun Rong of IG said in a commentary.

Australia’s S&P/ASX 200 gave up 1.2% to 7,004.40. Bangkok’s SET index edged 0.1% higher.

The Kospi in Seoul sank 1.8% to 2,240.81 on news that South Korea’s industrial production fell minus 3.7% from a year earlier in November, worse than forecast and a bigger drop than the minus 1.2% the month before. Retail sales were down 1.8% from the month before.

The worst year since 2008 for the S&P 500 has been winding down with little in the way of data to drive trading. But later Thursday, the U.S. government was due to release jobless claims, a measure of employment that could provide insight into how the economy is faring as the Federal Reserve raises interest rates to quash inflation.

The Fed has already raised its key interest rate seven times this year and is expected to continue raising rates in 2023. The key lending rate, the federal funds rate, stands at a range of 4.25% to 4.5%, and Fed policymakers forecast that the rate will reach a range of 5% to 5.25% by the end of 2023. Their forecast doesn’t call for a rate cut before 2024.

On Wednesday, the S&P 500 fell 1.2%, with technology, energy and industrial stocks among the biggest weights on the benchmark index. It finished at 3,783.22.

The Dow Jones Industrial Average dropped 1.1% to 32,875.71. The Nasdaq slid 1.4% to 10,213.29. The Russell 2000 gave up 1.6%, ending at 1,722.02.

Bond yields were mixed. The yield on the 10-year Treasury, which influences mortgage rates, rose to 3.88% from 3.85% Tuesday. The yield on the two-year Treasury fell to 4.34% from 4.38% late Tuesday.

With two more days of trading left in 2022, the S&P 500 is headed for a roughly 20% drop for the year, even as profits and margins for companies in the index have hit record heights this year. The Dow is on pace for a 9.5% drop, while the Nasdaq is doing much worse, on pace to plunge 34.7%.

Southwest Airlines slid 5.2% as the carrier grappled with the fallout after cancelling thousands of flight cancellations. The airline’s CEO said it could be next week before the flight schedule returns to normal. Shares in other airlines also fell. Delta Air Lines dropped 2.8% and United Airlines fell 2.4%.

Tesla rose 3.3% as it stabilized from steep losses it suffered after reports Tuesday that it temporarily suspended production at a factory in Shanghai.

U.S. crude oil prices settled 0.7% lower and natural gas prices plunged 10.8%. That hurt energy stocks. Exxon Mobil fell 1.6%.

Early Thursday, U.S. benchmark crude was down 41 cents at $78.55 per barrel in electronic trading on the New York Mercantile Exchange.

Brent crude, the pricing basis for international trading, gave up 43 cents to $83.56 per barrel in London.

The U.S. dollar fell to 133.85 Japanese yen from 134.39 yen late Wednesday. The euro rose to $1.0624 from $1.0613.


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.


FILE - A sign hangs outside the Internal Revenue Service building in Washington, on May 4, 2021. Th...
Associated Press

IRS urges special refund recipients to delay filing taxes

NEW YORK (AP) — The Internal Revenue Service is recommending that taxpayers hold off on filing their tax returns for 2022 if they received a special tax refund or payment from their state last year. Last year, 19 states offered diverse programs that offered inflation relief payments or refunds for taxpayers. The IRS issued the […]
17 hours ago
Darius Conner, prepares to make the first sale of vaporizer cartridges of cannabis in the "pop up" ...
Associated Press

As illegal pot dispensaries thrive, NYC goes after landlords

NEW YORK (AP) — In a renewed push to snuff out New York City’s thriving illegal cannabis market, Mayor Eric Adams and Manhattan’s top prosecutor announced Tuesday that they would go after landlords who allow hundreds of illicit shops to operate. During a news conference with the mayor, Manhattan District Attorney Alvin Bragg said his […]
17 hours ago
FILE - In this Sept. 13, 2018, file photo, Melissa Boerst, a Lithium Nevada Corp. geologist, points...
Associated Press

US judge refuses to block Nevada lithium mine construction

RENO, Nev. (AP) — A federal judge has ordered the government to revisit part of its environmental review of a lithium mine planned in Nevada but denied opponents’ effort to block the project in a ruling the developer says clears the way for construction at the largest known U.S. lithium deposit. The ruling late Monday […]
17 hours ago
Democratic Minnesota Gov. Tim Walz displays a bill he signed into law at the St. Paul Labor Center ...
Associated Press

Minn. governor trusts energy law will survive ND suit threat

ST. PAUL, Minn. (AP) — Democratic Gov Tim Walz signed a bill Tuesday that requires Minnesota utilities to get 100% of their electricity from carbon-free sources by 2040, saying he’s confident it will stand up against a threatened lawsuit from coal and gas producing North Dakota. Republican North Dakota Gov. Doug Burgum this week renewed […]
17 hours ago
Associated Press

Prosecution: Woman planned the killings of her 3 children

PLYMOUTH, Mass. (AP) — A Massachusetts woman used exercise bands to strangle her three children in the family home in a well-planned assault while her husband was out for about 20 minutes picking up medicine at a pharmacy and takeout, a prosecutor said at her arraignment Tuesday. Not guilty pleas were entered on behalf of […]
17 hours ago
Associated Press

How major US stock indexes fared Tuesday 2/7/2023

Stocks closed higher on Wall Street after the head of the Federal Reserve signaled last week’s stunningly strong jobs report isn’t likely to change where interest rates are heading on its own, as some investors had feared. The S&P 500, the Nasdaq and the Dow rose. Comments from Fed chief Jerome Powell sent stocks from […]
17 hours ago

Sponsored Articles

(Pexels Photo)...

Sports gambling can be fun for adults, but it’s a dangerous game for children

While adults may find that sports gambling is a way to enhance the experience with more than just fandom on the line, it can be a dangerous proposition if children get involved in the activity.
Quantum Fiber

How high-speed fiber internet edges out cable for everyday use

In a world where technology drives so much of our daily lives, a lack of high-speed internet can be a major issue.
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.
Asian shares extend losses after Wall Street decline