Wednesday, September 28, 2022

Asian benchmarks mostly lower after Wall St session

Asian benchmarks mostly lower after Wall St session

by Yuri Kageyama

TOKYO ( Associated Press) – Asian shares were mostly lower on Wednesday after sluggish trading on Wall Street amid concerns of a global slowdown.

Major benchmarks fell across Asia. Oil prices regained some lost ground after Monday’s plunge. Analysts said markets were focused on a range of risks, including inflation, oil prices, interest rates moves by the US Federal Reserve and other central banks, political developments in the UK and concerns over COVID-19. Are included.

But the basic mood is wait and see.

Wall Street opened on a weak note on Monday after markets remained closed for the Independence Day holiday. The price of US crude fell $8.93 to eventually drop below $100 a barrel for the first time since early May.

US benchmark crude was up 60 cents at $100.10 a barrel early Wednesday. Internationally, Brent crude rose $1.24 to $104.01 a barrel.

Market volatility reflects growing concerns among investors that economies are slowing under the pressure of rising inflation and increasingly high interest rates, pressures that could drive them into recession.

Regarding oil prices, Stephen Innes, managing partner at SPI Asset Management, said, “While there is another wave of COVID in China, nothing new or justifies the seriousness of the market-related move.”

Japan’s benchmark Nikkei 225 fell 1.3% to 26,078.66 in morning trade. Australia’s S&P/ASX 200 slipped 0.6% to 6,592.80. South Korea’s Kospi ended down nearly 1% at 2,318.56. Hong Kong’s Hang Seng fell 1.4% to 21,543.39 while the Shanghai Composite fell 1.3% to 3,358.53.

Japan has parliamentary elections this coming weekend, but the expected outcome is for more stability. Despite the ruling party’s stumbling block to curb coronavirus infections, the economy and various scandals, Prime Minister Fumio Kishida seems poised to win amid a heavily divided and discredited opposition.

Stock indexes on Wall Street ended with minor gains, with an afternoon rally led by technology companies.

The S&P 500 rose 0.2% to 3,831.39. The Nasdaq climbed 1.7% to end at 3,831.39. The Dow Jones Industrial Average was in the red, down 0.4% at 30,967.82. After the beginning of the decline in the shares of smaller companies came back. The Russell 2000 rose 0.8% to 1,741.33.

In Britain, the FTSE 100 fell 2.9% after two of the most senior cabinet ministers, British Prime Minister Boris Johnson, stepped down, saying they had sought to change explanations about Johnson’s handling of a sexual misconduct scandal. Trust was lost.

Despite a late rally in technology stocks, communications firms and retailers and other companies that rely on direct consumer spending, energy, industry, health care and most of the 11 sectors in the S&P 500 ended in the red.

“The market is really taking the growth slowdown as the primary driver today,” said Paul Kim, CEO of Simplified Asset Management. “So you’re seeing a modest sell-off in riskier assets, but a significant sell-off in oil, energy, growth-related commodities, as well as a slight decline in yields.”

The stock remains in a bearish trend that pulled the S&P 500 into a bear market last month, meaning an extended decline of 20% or more from its recent peak. The market performance in the first half of 2022 was the worst since the first six months of the 1970s.

Inflation has been squeezing businesses and consumers, tightening its grip since Russia invaded Ukraine in February. The invasion sent oil prices globally higher and gasoline prices in the US to record highs. Struggling with high prices for everything from food and clothing to clothing, consumers are cutting back on spending.

The lockdown in China over rising COVID-19 cases has made supply chain problems worse.

Wall Street is closely watching the latest economic updates to see how inflation is affecting the economy and whether it could change the Fed’s position on rate hikes. Wall Street will take a closer look at the job market on Friday when the government releases employment data for June.

Investors are also expecting the next round of corporate earnings. Several large companies recently warned that their financial results were being affected by inflation, including spice and spice maker McCormick.

In currency trading, the US dollar declined from 135.84 yen to 135.22 Japanese yen. The Euro is priced at $1.0259, which is less than $1.0266.

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Associated Press Business Writers Damien J. Trois and Alex Veiga contributed.

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Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

Nation World News Desk
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