WORLD NEWS

Asian shares mostly decline echoing US slide on rate worries

Sep 25, 2022, 10:09 PM

TOKYO, JAPAN - NOVEMBER 05: Pedestrians wearing face masks are reflected in an electronic screen sh...

TOKYO, JAPAN - NOVEMBER 05: Pedestrians wearing face masks are reflected in an electronic screen showing stock market information on the street on November 05, 2020 in Tokyo, Japan. Donald Trump and Joe Biden are in a tight race in the battleground states after yesterday's election. (Photo by Takashi Aoyama/Getty Images)

(Photo by Takashi Aoyama/Getty Images)

TOKYO (AP) — Asian shares were mostly lower Monday, reflecting pessimism over weakness on Wall Street as the squeeze by central banks around the world to curb inflation weighs on investor sentiment.

Japan’s benchmark Nikkei 225 dropped 2.1% in morning trading to 26,587.08. Australia’s S&P/ASX 200 dipped 1.3% to 6,489.80. South Korea’s Kospi dropped 2.4% to 2,234.15. Hong Kong’s Hang Seng edged up 0.6% to 18,039.95, while the Shanghai Composite gained 0.1% to 3,092.30.

“Momentum may follow from the further sell-off on Wall Street to end last week, with strength in the U.S. dollar weighing on Asian indices,” Yeap Jun Rong, a market strategist at IG in Singapore, said in a report.

The recent moves by the U.S. Federal Reserve and other central banks around the world to raise interest rates are designed to curb high inflation, but they also threaten a recession, if the rates rise too much or too quickly.

Wall Street ended last week with widespread selling, leaving major indexes with their fifth loss in six weeks. Data on European business activity was discouraging, and a separate report suggested U.S. activity is also still shrinking, though not quite as badly as in earlier months.

The S&P 500 sank 1.7% on Friday, to 3,693.23, its fourth straight drop. The Dow, which at one point was down more than 800 points, lost 486.27 points, or 1.6%, to close at 29,590.41. The Nasdaq fell 1.8% to 10,867.93.

British pound plummets to record low against the dollar

Smaller company stocks did even worse. The Russell 2000 fell 2.5% to close at 1,679.59.

More than 85% of stocks in the S&P 500 closed in the red, with technology companies, retailers and banks among the biggest weights on the benchmark index.

Last week, the Fed lifted its benchmark rate, which affects many consumer and business loans, to a range of 3% to 3.25%. It was near zero at the start of the year. The Fed also released a forecast suggesting its benchmark rate could be 4.4% by the year’s end, a full point higher than envisioned in June.

In energy trading on Monday, benchmark U.S. crude rose 12 cents to $78.86 a barrel in electronic trading on the New York Mercantile Exchange. U.S. crude oil prices slid 5.7% Friday to their lowest levels since early this year on worries that a weaker global economy will burn less fuel.

Brent crude, the international standard, edged up 6 cents to $86.21 a barrel.

In currency trading, the recent rise in the U.S. dollar has been a concern, stoking worries about dented profits for U.S. companies with overseas business, and putting a financial squeeze on much of the developing world.

When the dollar approached 146 yen last week, the Bank of Japan intervened. The dollar has been trading at about 143 yen since then.

It edged up Monday to 143.75 Japanese yen from 143.32 yen. The euro cost 96.59 cents, down from 96.88 cents.

KSL 5 TV Live

World News

"Mary Poppins," which was rated U for Universal upon its 1964 release, is now rated PG in the UK be...

Harmeet Kaur, CNN

‘Mary Poppins’ gets a new age rating in the UK over its use of a racial slur

A British film industry group has raised the age rating for the beloved children’s classic “Mary Poppins” over discriminatory language.

3 days ago

The Tabernacle Choir at Temple Square is preparing to perform its last two concerts in the Philippi...

Dan Rascon

Tabernacle Choir prepares to perform at renowned Mall of Asia with Filipino press day

The Tabernacle Choir at Temple Square is preparing to perform its last two concerts in the Philippines with a press day. Afterward, the choir will continue on with its world tour.

4 days ago

Aaron Bushnell as seen from his LinkedIn profile. Bushnell set himself ablaze outside the Israeli E...

Michael Balsamo, Associated Press

US airman dies after setting himself ablaze outside Israeli Embassy in Israel-Hamas war protest

An active-duty member of the U.S. Air Force has died after he set himself ablaze outside the Israeli Embassy in Washington, D.C., while declaring that he “will no longer be complicit in genocide.”

4 days ago

The Birmingham England Temple Rendering...

Michael Houck

Church releases location for Vancouver Washington Temple, renderings for England, US temples

The Church of Jesus Christ of Latter-day Saints has released the site location of the Vancouver Washington Temple and artistic renderings for temples in England, Nevada and Texas.

4 days ago

FILE - This May 20, 2013, file photo shows a first edition copy of the first Harry Potter book "Har...

Associated Press

Proof copy of Harry Potter book, bought for pennies in 1997, sells for more than $13,000

A proof copy of the first Harry Potter novel that was bought for pennies in a second-hand bookshop almost 30 years ago has sold at auction for 11,000 pounds ($13,900.)

4 days ago

Kathy Brandel and Ralph Hendry, from Virginia, were spending the winter cruising the Eastern Caribb...

Sharif Paget, Chris Boyette and Polo Sandoval, CNN

2 Americans believed dead after yacht allegedly hijacked in Grenada

The family of two Americans who may have been killed after prison escapees allegedly hijacked their yacht in Granada are clinging to hope the couple might be found alive.

5 days ago

Sponsored Articles

Modern chandelier hanging from a white slanted ceiling with windows in the backgruond...

Lighting Design

Light Up Your Home With These Top Lighting Trends for 2024

Check out the latest lighting design trends for 2024 and tips on how you can incorporate them into your home.

Technician woman fixing hardware of desktop computer. Close up....

PC Laptops

Tips for Hassle-Free Computer Repairs

Experiencing a glitch in your computer can be frustrating, but with these tips you can have your computer repaired without the stress.

Close up of finger on keyboard button with number 11 logo...

PC Laptops

7 Reasons Why You Should Upgrade Your Laptop to Windows 11

Explore the benefits of upgrading to Windows 11 for a smoother, more secure, and feature-packed computing experience.

Stylish room interior with beautiful Christmas tree and decorative fireplace...

Lighting Design

Create a Festive Home with Our Easy-to-Follow Holiday Prep Guide

Get ready for festive celebrations! Discover expert tips to prepare your home for the holidays, creating a warm and welcoming atmosphere for unforgettable moments.

Battery low message on mobile device screen. Internet and technology concept...

PC Laptops

9 Tips to Get More Power Out of Your Laptop Battery

Get more power out of your laptop battery and help it last longer by implementing some of these tips from our guide.

Users display warnings about the use of artificial intelligence (AI), access to malicious software ...

Les Olson

How to Stay Safe from Cybersecurity Threats

Read our tips for reading for how to respond to rising cybersecurity threats in 2023 and beyond to keep yourself and your company safe.

Asian shares mostly decline echoing US slide on rate worries