AP

Asian stocks rebound after Wall St sinks on rate fears

Feb 5, 2023, 11:12 PM | Updated: Feb 6, 2023, 10:03 pm

A currency trader watches monitors near the screens showing the Korea Composite Stock Price Index (...

A currency trader watches monitors near the screens showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Tuesday, Feb. 7, 2023. Asian stock markets rebounded Tuesday after Wall Street sank under pressure from worries about higher interest rates and after Japan reported stronger wage gains than expected. (AP Photo/Ahn Young-joon)

(AP Photo/Ahn Young-joon)

BEIJING (AP) — Asian stock markets rebounded Tuesday after Wall Street sank under pressure from worries about higher interest rates and after Japan reported stronger wage gains than expected.

Shanghai, Tokyo, Hong Kong and Seoul advanced. Oil prices rose.

Wall Street sank for a second day Monday after unexpectedly strong U.S. data on hiring and wages dampened hopes the Federal Reserve might decide it has succeeded in cooling inflation and can wind down plans for more rate hikes.

Traders were looking ahead to a planned speech by Fed Chair Jerome Powell in Washington for possible clues about interest rate plans.

Expectations for the Fed to reverse course quickly are unrealistic, Clifford Bennett of ACY Securities said in a report.

“The mismatching of financial market pricing and economic reality is both stark and stretched,” Bennett said.

The Nikkei 225 in Tokyo gained 0.2% to 27,754.36 after the government reported wages rose 4.8% over a year earlier in December. That was close to a three-decade high as workers press for higher pay to keep pace with inflation.

The Shanghai Composite Index rose 0.2% to 3,244.55 and the Hang Seng in Hong Kong advanced 1% to 21,422.97.

The Kospi in Seoul added 0.6% to 2,453.80 and Sydney’s S&P-ASX 200 was up less than 0.1% at 7,541.60. New Zealand and Singapore declined while Jakarta advanced.

On Wall Street, the benchmark S&P 500 index fell 0.6% to 4,111.08. The Dow Jones Industrial Average lost 0.1% to 33,891.02 and the Nasdaq composite tumbled 1% to 11,887.45.

The yield on the two-year Treasury, which tends to track expectations for the Fed, leaped by an unusually wide margin to 4.47% from Friday’s 4.29% and the previous day’s 4.1%.

The yield on the 10-year Treasury, which helps set rates for mortgages and other important loans, jumped to 3.64% from 3.52% late Friday.

The Fed and central banks in Europe and Asia are trying to extinguish inflation that is at multi-decade highs by cooling economic activity. Traders worry they might be willing to tip the global economy into recession to achieve that.

Friday’s employment data showed the U.S. economy added twice as many jobs as expected last month despite higher interest rates. That is good for workers but the Fed worries wage gains will push up inflation. That fuels fears the U.S. central bank might push rates higher.

On Wall Street, Tyson Foods fell 4.6% on Monday after it reported weaker profit and revenue for its latest quarter than analysts expected.

Dell Technologies dropped 3% after it said it will cut about 5% of its workforce. The company’s vice chairman said in a message to employees that “market conditions continue to erode with an uncertain future.”

In energy markets, benchmark U.S. crude gained 83 cents to $74.94 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 72 cents to $74.11 on Monday. Brent crude, the price basis for international oil trading, advanced 81 cents to $81.80 per barrel in London. It added $1.05 the previous session to $80.99.

The dollar fell to 132.17 Japanese yen from 132.67 yen. The euro rose to $1.0744 from $1.0728.

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

AP

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.

9 hours 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.

10 hours 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.

1 day ago

Speaker of the House Mike Johnson...

Associated Press

House Speaker Mike Johnson says he will push for aid to Israel and Ukraine this week

House Speaker Mike Johnson said Sunday he will try to advance wartime aid for Israel this week, along with funding for Ukraine.

1 day ago

President Joe Biden speaks at a campaign rally Saturday, March 9, 2024, at Pullman Yards in Atlanta...

Associated Press

US shoots down ‘nearly all’ Iran-launched attack drones as Biden vows support for Israel’s defense

Joe Biden cut short a weekend stay at his beach house to meet with his national security team as Iran launched an attack against Israel.

3 days ago

Follow @ktar923...

Sponsored Content by Condor Airlines

Condor Airlines can get you smoothly from Phoenix to Frankfurt on new A330-900neo airplane

Adventure Awaits! And there's no better way to experience the vacation of your dreams than traveling with Condor Airlines.

Sponsored Articles

...

Midwestern University

Midwestern University Clinics: transforming health care in the valley

Midwestern University, long a fixture of comprehensive health care education in the West Valley, is also a recognized leader in community health care.

...

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.

...

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 rebound after Wall St sinks on rate fears