Asian markets mixed, prolonging Wall Street’s losses

BANGKOK (AP) – Stocks mixed Monday in Asia after Wall Street recorded its worst week since the pandemic began…

BANGKOK (AP) – Stocks were mixed Monday in Asia after Wall Street recorded its worst week since the pandemic began in 2020.

Benchmarks fell in Hong Kong, Seoul and Sydney but rose in Tokyo. Shanghai little changed. US futures are higher.

Investors are increasingly worried about how the Federal Reserve, holding a policy meeting this week, can act to cool rising inflation.

Historically low interest rates, known as quantitative easing, or QE, have helped support the broader market as the economy took a hit from the pandemic in 2020 and then recovered over the past two years. .

“The FOMC (Fed) meeting dominates this week’s macro calendar and is likely to keep risk sentiment on the hesitant side on the end of QE and the waves,” ING economists Nicholas Mapa and Robert Carnell said. Imminent rate hikes are likely to be announced,” ING economists Nicholas Mapa and Robert Carnell said in a comment.

Some economists believe that the US central bank needs to go faster to reduce inflated prices by raising interest rates. US consumer prices rose 7% in December from a year earlier, the biggest increase in nearly four decades.

Rising costs have also raised concerns that consumers will begin to cut back on spending due to the continued pressure on their wallets. At the same time, the outbreak of the omicron variant of the coronavirus threatens to slow the recovery from the crisis.

Tokyo’s Nikkei 225 index rose 0.2% to 27,588.37, while Hong Kong’s Hang Seng index fell 1% to 24,721.49. In Australia, the S&P/ASX 200 lost 0.5% to 7,139.50 and India’s Sensex fell 1.7% to 58,072.62.

South Korea’s Kospi fell 1.5% to 2,794.26 on heavy sales of big tech companies like Samsung and LG Chemical. Thailand’s SET lost 0.6%.

The Shanghai Composite Index rose less than 0.1% to 3,524.11.

On Friday, the benchmark S&P 500 fell 1.9% to 4,397.94, down 5.7% in its worst weekly loss since March 2020.

The tech-heavy Nasdaq composite fell 2.7% to 13,768.92. It has fallen for four straight weeks and is now 10% below its most recent high, putting it at what Wall Street sees as a market correction.

The Dow Jones Industrial Average fell 1.3% to 34,265.37.

Peloton rose 11.7% after the exercise bike and treadmill maker said fiscal second-quarter revenue will meet previous estimates. Supply had increased a day earlier after CNBC reported Peloton was suspending production of exercise equipment to stem a sales slump.

With investors expecting the Fed to start raising rates shortly after its policy meeting in March, shares of expensive tech companies and other expensive growth stocks are looking relatively unattractive right now. more lead.

Technology and media stocks were among the biggest traction stocks in the market on Friday. Video streaming service Netflix dropped 21.8% after a disappointing quarter of subscriber growth. Disney, which is also trying to grow subscribers for its streaming service, fell 6.9%.

Treasury yields have fallen as investors turn to safer investments. The yield on 10-year Treasuries was steady on Monday at 1.77%.

The Fed’s short-term benchmark interest rate is currently between 0% and 0.25%. Investors now have a nearly 70 percent chance that the Fed will raise rates by at least one percentage point later this year, according to CME Group’s Fed Watch tool.

In other trading, benchmark U.S. crude rose 55 cents to $85.69 a barrel in electronic trading on the New York Mercantile Exchange. It rose 41 cents to $85.14 a barrel on Friday.

Brent crude, the basis for pricing international oils, added 59 cents to $88.48 a barrel.

The US dollar rose to 113.82 Japanese yen from 113.68 yen. The euro fell to $1.1319 from $1.1346.

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https://wtop.com/asia/2022/01/asian-shares-mostly-lower-extending-wall-street-losses/ Asian markets mixed, prolonging Wall Street’s losses

James Brien

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