Asian markets follow Wall Street lower amid inflation pressures
BEIJING – Asian stock markets followed Wall Street lower on Friday after higher-than-expected US inflation dashed hopes that the Federal Reserve might dampen interest rate hikes.
Nikkei 225 NIK Index,
In Tokyo it sank 1.1%. The Hang Seng HSI,
In Hong Kong, it fell 0.5%, while the Shanghai Composite Index SHCOMP fell,
The Kospi 180721,
In Seoul, it fell 0.9% and the S&P/ASX 200 XJO in Sydney,
It was 1.3% lower. Singapore STI,
Less than 0.1% profit while markets in New Zealand NZ50GR,
and Indonesia JAKIDX,
Wall Street’s benchmark S&P 500 lost 1.1% Thursday, extending declines since this week’s release of government data showing inflation remained near a four-decade high in August despite four interest rate hikes this year to slow the economy. .
On Thursday, US government data showed unemployment claims fell last week while consumer sales rose for August. This gives ammunition to Federal Reserve officials who say the economy can withstand further price hikes.
IG’s Yeap Jun Rong said in a report that Wall Street’s decline indicates “no sign of easing risk sentiment” while labor market data “give the green light for further tightening” in monetary policy.
On Wall Street, the S&P 500 SPX,
It fell to 3901.35 after the Labor Department said the number of jobless claims fell last week to a four-month low.
The benchmark market index fell 4.1% for the week after the biggest decline in two years on Tuesday after the government announced that US consumer prices rose 8.3% from a year earlier and 0.1% compared to July.
The overall figure is down from June’s peak of 9.1%, but core inflation, which strips out volatile food and energy prices to give a clearer picture of the trend, rose to 0.6% from the previous month, up from 0.3% in July.
Dow Jones Industrial Average DJIA,
It fell 0.6 percent to 30,961.82 points. Nasdaq Corporation,
It fell 1.4% to 11,552.36.
Traders are concerned that aggressive rate hikes by the Federal Reserve and central banks in Europe and Asia to control price hikes could derail global economic growth. The rate has been raised twice by the Fed this year by 0.75 percentage points, three times the usual margin, and traders expect a similar increase this month.
Federal Reserve Chairman Jerome Powell said in August that interest rates will remain high for some time until the US central bank makes sure inflation is under control.
Retail sales data gave a mixed view of how US consumers are dealing with inflation.
Sales unexpectedly rose 0.3% in August after declining 0.4% in July.
In energy markets, the US crude benchmark CLV22,
It rose 15 cents to $85.25 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell $3.38 on Thursday to $85.10. Brent crude BRNX22,
The international oil trading basis rose 23 cents to $91.07 a barrel in London. It lost $3.26 in the previous session to $90.84.
It fell to 143.44 yen from 143.49 yen on Thursday.