Friday, September 30, 2022

Asian stocks pull back on Wall Street plunge

Asian stocks tumbled on Thursday after the Wall Street downturn as banks and medical companies pulled the S&P 500 and Dow Jones Industrial Average back from their latest all-time highs.

Stocks fell in most of the major regional markets, and oil prices also fell.

In Seoul, the Kospi rose 0.2% to 3,030.56 after Samsung Electronics posted its highest quarterly profit in three years thanks to strong demand for computer memory chips.

Samsung’s double strength in parts and finished products allowed the company to thrive during the pandemic as millions of people were forced to work from home. However, the company said it was dealing with a “longer-than-expected” component shortage that could affect semiconductor demand in the current quarter.

Tokyo’s Nikkei 225 lost 0.8% to 28,867.56 after the Bank of Japan kept its monetary policy unchanged at its meeting on Thursday.

The central bank has warned of downward pressure on the world’s third largest economy from the pandemic and from “supply-side constraints” such as delivery delays, bottlenecks, and shortages of computer chips and other manufacturing materials.

He cut his growth forecast for the fiscal year ending in March to 3.4% from a 3.8% estimate released in July. He predicts inflation this year will be 0.0%, a sharp decline from the previous forecast of 0.9%.

But he also said he expected improvement as the impact of COVID-19 gradually weakened, “mainly due to widespread vaccinations, the economy is likely to recover thanks to increased external demand, favorable financial conditions and economic measures from the government,” he said.

In Hong Kong, the Hang Seng fell 0.1% to 25,613.61, while the Shanghai Composite fell 1.1% to 3,524.93. The S & P / ASX 200 in Sydney fell 0.3% to 7,426.40.

Flaring coronavirus cases in China and Singapore have exacerbated doubts about the economic outlook, given signs that inflationary trends could force central banks to step up monetary tightening.

On Wednesday in New York, the S&P 500 fell 0.5% to 4551.68. More than three quarters of the benchmark companies fell, with the largest declines in the financial, healthcare and industrial sectors.

The Dow Jones Industrial Average lost 0.7% to 35,490.69. Both he and the S&P 500 reached record highs the day before.

Most blue-chip stocks were in the red, led by Visa, which fell 6.9% on the day following strong quarterly results.

The Nasdaq rose less than 0.1% to 15,235.84, while the Russell 2000 Small Business Index suffered the biggest losses, falling 1.9% to 2,252.49.

Long-term bond yields have dropped significantly and put pressure on banks, which rely on higher yields to charge more lucrative interest on loans. The 10-year Treasury yield fell to 1.53% from 1.61% on Tuesday night. It was stable at 1.55% early Thursday.

The yield on 30-year Treasuries fell below 2% to 1.96% for the first time in a month, although rates on shorter-term US bonds, such as 2-year Treasuries, rose.

Crude oil prices in the US fell 2.4%, pushing energy stocks down. Exxon Mobil shares fell 2.6%.

On Thursday, US benchmark oil lost $ 1.41 to $ 80.25 a barrel. Brent crude, the basis for international prices, fell $ 1.50 to $ 82.37 a barrel.

A steady stream of corporate report cards continued on Thursday, featuring industry leader Caterpillar and tech giant Apple. Amazon and Starbucks will also report their results on Thursday.

In addition to earnings, investors will receive an update on US economic growth when the Commerce Department releases its third-quarter gross domestic product report on Thursday.

Rising inflation remains a major concern for investors as they track earnings and the impact of supply chain problems and price increases on businesses and consumers. Investors are also awaiting a meeting of the Federal Reserve Board next week to see how it is progressing on plans to cut bond purchases and its position on interest rates.

The central bank argued that inflation would be “temporary” and linked to economic recovery, although it was more resilient than originally thought.

In other trading, the dollar fell to 113.55 yen from 113.83 yen. The euro exchange rate remained unchanged at $ 1.1603.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
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