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Asian Benchmarks Mostly Lower After Tepid Wall St Session | Business News

By Yuri Kageyama, AP Business Writer

TOKYO (AP) – Asian shares were mostly lower on Wednesday after weak trade on Wall Street amid concerns about a global recession.

Major benchmarks across Asia have fallen. Oil prices recover some lost land. Analysts say markets are focusing on a variety of risks, including inflation, oil prices, interest rates from the US Federal Reserve and other central banks, Britain’s political development and concerns over Covid-19.

But the basic mood is to wait and see.

There was a weak opening on Wall Street after markets closed on Monday for the Independence Day holiday. U.S. crude oil prices sank $ 8.93, finally settling below 100 100 a barrel for the first time in early May.

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On Wednesday, the U.S. benchmark crude oil rose 42 cents to 99.92 a barrel. Brent crude, the international standard, rose 97 cents to $ 103.74 a barrel.

Market volatility reflects growing concern among investors that economies are slowing under the pressure of rising inflation and sharply high interest rates, the pressure that could lead them to recession.

“While there has been another wave of covid in China, nothing new or market-related seems to justify the intensity of the move,” said Stephen Ines, managing partner at SPI Asset Management, about oil prices.

Japan’s benchmark Nikkei 225 lost 1.1% in afternoon trading to 26,134.71. The Australian S&P / ASX 200 fell 0.5% to 6,594.50. South Korea’s Kospi fell 1.9% to 2,297.02. Hong Kong’s Hang Seng fell 2.4% to 21,333.26 while the Shanghai Composite fell 1.9% to 3,337.88.

Japan has parliamentary elections this weekend, but the expected results are for more stability. Despite the ruling party’s stumbling block in preventing coronavirus infections, the economy and various scandals, Prime Minister Fumio Kishida seems to be heading for victory among the widely divided and disrespected opposition.

The stock index ended with a slight gain on Wall Street with a rally in the afternoon led by tech companies.

The S&P 500 rose 0.2% to 3,831.39. The Nasdaq rose 1.7% to 3,831.39. The Dow Jones Industrial Average remained red, losing 0.4% to 30,967.82. Small-company stocks bounce back after a bearish start. Russell 2000 rose 0.8% to 1,741.33.

In Britain, the FTSE 100 fell 2.9% after the resignation of two of British Prime Minister Boris Johnson’s most senior cabinet ministers, who said they had lost confidence in Johnson’s leadership in a change in interpretation of his sexual misconduct scandal.

Despite the late rally of technology stocks, communications agencies and retailers and other companies that rely directly on consumer spending, most of the 11 sectors of the energy, industry, healthcare and S&P 500 ended in red.

Stocks have not bounced back from the downturn that dragged the S&P 500 into the beer market last month, meaning a 20% or more extended fall from the recent peak. Market performance in the first half of 2022 was the worst since the first six months of 1970.

Inflation has been eroding business and consumers since Russia invaded Ukraine in February, tightening its grip. The aggression has pushed up global oil prices and sent petrol prices to record highs in the United States. Consumers struggling with high prices for everything from food to clothing are cutting costs.

From the growing COVID-19 case, the lockdown in China has exacerbated the supply chain problem.

Wall Street is closely monitoring recent economic updates for more clues on 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 employment market on Friday when the government releases employment data for June.

Investors are also waiting for the next round of corporate earnings. Several large companies have recently warned that their financial results are being weighed down by inflation, including spice and spice maker McCormick.

In currency trading, the US dollar fell from 135.84 yen to 135.12 Japanese yen. The euro is priced at $ 1.0260, an inch lower than $ 1.0266.

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

Copyright 2022 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.




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