Asian stocks are mostly declining as inflation worries cloud forecasts Associated Press
TOKYO (AP) – Asian stocks fell sharply on Tuesday as fears over inflation undermined optimism over President Joe Biden’s remark that he was considering lowering U.S. tariffs on Chinese imports.
Performance declined in Tokyo, Seoul, Shanghai and Hong Kong, but rose slightly in Sydney. U.S. oil and futures prices were lower.
Biden, who announced a new economic and trade initiative with the region at the time with a visit to Japan, confirmed to reporters that he plans to discuss with Finance Minister Janet Yellen the issue of punitive tariffs imposed against China during the administration of former President Donald Trump, after he returns to Washington.
“I talk to the secretary when I get home. We are considering it, ”Biden said.
These comments sparked optimism about the possibility of easing tensions between the world’s two largest economies, but not everyone was convinced.
“Talks about lower tariffs on exports from China have surfaced before, and the lack of any concrete follow-up remains an element of frustration for markets,” said Yep Joon Rong, IG’s market strategist in Singapore.
Investors are watching the impact of the war in Ukraine on commodity prices and a possible blow to global economic growth from the pandemic in China.
Japanese benchmark Nikkei 225 fell 0.5% to 26,863.33. The Australian S & P / ASX 200 increased 0.1% to 7,155.90. South Korean Kospi fell 0.9% to 2,625.78. Hong Kong’s Hang Seng was down 1.4% to 20,180.92, while the Shanghai Composite was down 0.4% to 3,133.72.
“Russia’s invasion of Ukraine, the wave of COVID-19 contamination and the blockade in China, relentless inflation and tightening financial conditions have disrupted production and stifled demand, putting the global economy to a halt,” said Sarah Johnson, S&P’s chief executive. Global Market Intelligence.
Wall Street had an upbeat start to the week after a seven-week decline that nearly ended the bull market that began in March 2020. The S&P 500 rose 1.9% to 3,973.75, with technology and financial stocks doing much of the hard work for the benchmark index. The Dow Industrial Average rose 2% to 31,880.24 and the Nasdaq 1.6% to 11,535.27.
Shares of smaller companies staged a rally. Russell 2000 increased 1.1% to 1,792.76.
Recent major sales have forced traders to buy large technology stocks and shares of other companies that were operators before the market loss, said Quincy Crosby, chief strategist at LPL Financial.
“Today we see traders and investors coming and enjoying lower (price) levels,” she said. “It’s a tug of war in the market between those who say the market has become attractively valued and those who say ‘not really’ because it doesn’t take into account much slower growth.”
Strong concerns about inflation dragged the market and kept major indexes falling. The S&P 500 is coming off its longest weekly loss streak since the 2001 dot bubble blow. It was close to falling 20% from its peak earlier this year, which would have put the index at the base of 401 most workers. (k) accounts in bear market.
Last week, a number of disappointing earnings reports from key retailers also raised concerns that consumers are holding back spending on a wide range of goods when they are squeezed by rising inflation.
Investors fear that the central bank may go too far in raising rates or move too fast. This can slow down business activity and potentially lead to a recession. On Wednesday, investors will get a more detailed view of the Fed’s decision-making process with the published minutes of the last policy-making meeting.
Wall Street will also receive several economic upgrades this week from the Department of Commerce. On Thursday, it will publish a report on gross domestic product for the first quarter, and on Friday – data on personal income and expenditure for April.
In electronic trading on the New York Mercantile Exchange, US reference oil lost 73 cents to $ 109.56 per barrel. On Monday, it added 1 cent to $ 110.29 a barrel. Brent crude, an international pricing standard, fell 87 cents to $ 112.55 a barrel.
In foreign exchange trading, the US dollar rose to 127.98 Japanese yen from 127.78 yen. The euro was worth $ 1.0673 compared to $ 1.0688.
AP Business Writers Damian J. Trois and Alex Weig contributed.
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