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Sept. 18, 2022, 11:47 p.m. EDT

Asian markets slip lower following last week’s broad decline on Wall Street

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By Associated Press

Asian shares fell Monday after another week of sizable losses on Wall Street, as investors braced for another interest rate hike by the U.S. Federal Reserve.

Japan’s markets were closed for a holiday. Oil prices rose while U.S. futures /zigman2/quotes/209948968/delayed ES00 +0.14% /zigman2/quotes/210407078/delayed YM00 +0.22% /zigman2/quotes/210219788/delayed NQ00 +0.04% declined.

Hong Kong’s Hang Seng /zigman2/quotes/210598030/delayed HK:HSI -1.25% lost 0.9% while the Shanghai Composite index /zigman2/quotes/210598127/delayed CN:SHCOMP +0.06% shed 0.2%. Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO -0.20% edged 0.1% lower. In Seoul, the Kospi /zigman2/quotes/210598069/delayed KR:180721 -1.19% sank 1%. Benchmark indexes in Singapore /zigman2/quotes/210597985/delayed SG:STI +0.56% , Taiwan /zigman2/quotes/210597977/delayed TW:Y9999 +0.03% and Indonesia /zigman2/quotes/210597981/delayed ID:JAKIDX -0.29% declined.

Japan’s central bank meets Wednesday and Thursday amid rising pressure to counter a sharp decline in the yen, which is trading near 145 to the dollar after  sharp increases in the value of the greenback.  That has raised costs for businesses and consumers, who must pay more for imports of oil, gas and other necessities.

However the Bank of Japan has held firm so far in maintaining an ultralow benchmark rate of minus 0.1% in hopes of stimulating investment and spending.

On Friday, a stark warning Friday from FedEx about rapidly worsening trends in the economy gave investors more to worry about. The S&P 500 fell 0.7%, while the Nasdaq lost almost 1%. The Dow lost almost half a percent.

Markets have been on edge because of stubbornly high inflation and the increases in interest rates being used to fight it. The fear is that the Fed and other central banks might overshoot their policy targets, triggering a recession.

Most economists forecast that the Fed will jack up its primary lending rate another three-quarters of a point when the central bank’s leaders meet this week.

“Fact is, hawkish expectations built on the ‘hot under the hood’ U.S. inflation print means that markets have good reason to be braced for headwinds amid prospects of higher (for longer) rates; and arguably “higher for longer” USD (dollar) as well,” Vishnu Varathan of Mizuho Bank said in a commentary.

The S&P 500 sank 4.8% for the week, with much of the loss coming from a 4.3% rout on Tuesday following a surprisingly hot report on inflation.

All the major indexes have now posted losses four out of the past five weeks.

FedEx /zigman2/quotes/203047719/composite FDX +1.93%  sank 21.4% for its biggest single-day sell-off on record Frday after warning investors that profits for its fiscal first-quarter will likely fall short of forecasts because of a drop-off in business. The package delivery service is also shuttering storefronts and corporate offices and expects business conditions to further weaken.

The S&P 500 /zigman2/quotes/210599714/realtime SPX +0.38% fell 0.7% to 3,873.33. It’s now down 18.7% so far this year. The Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +1.47% dropped 0.5% to 30,822.42 and the Nasdaq /zigman2/quotes/210598365/realtime COMP -0.23% slid 0.9% to 11,448.40.

Higher interest rates tend to weigh on stocks, especially the pricier technology sector. Technology stocks within the S&P 500 are down more than 26% for the year and communications companies have shed more than 34%. They are the worst performing sectors within the benchmark index so far this year.

The housing sector is also hurting as interest rates rise. Average long-term U.S.  mortgage rates  climbed above 6% this week for the first time since the housing crash of 2008. The higher rates could make an already tight housing market even more expensive for homebuyers.

Reports this week from the government showed that  prices for just about everything but gas are still rising , the  job market is still red-hot  and  consumers continue to spend , all of which give ammunition to Fed officials who say the economy can tolerate more rate hikes.

In other trading Monday, U.S. benchmark crude gained 58 cents to $85.69 per barrel in electronic trading on the New York Mercantile Exchange. It edged up 1 cent to $85.11 per barrel.

Brent crude oil rose 72 cents to $92.07 per barrel.

The dollar /zigman2/quotes/210561789/realtime/sampled USDJPY -0.2274% strengthened to 143.14 Japanese yen from 142.94 yen.

US : U.S.: CME
$ 4,583.25
+6.50 +0.14%
Volume: 95,383
Dec. 1, 2023 3:49a
$ 36,091.00
+81.00 +0.22%
Volume: 19,517
Dec. 1, 2023 3:49a
US : U.S.: CME
$ 15,992.50
+7.00 +0.04%
Volume: 44,667
Dec. 1, 2023 3:49a
HK : Hong Kong Exchange
-212.58 -1.25%
Volume: 2.43M
Dec. 1, 2023 4:09p
CN : China: Shanghai
+1.96 +0.06%
Volume: 28.61B
Dec. 1, 2023 3:00p
-14.10 -0.20%
Volume: 581,856
Dec. 1, 2023 5:15p
KR : Korea Exchange
-30.28 -1.19%
Volume: 516,596
Dec. 1, 2023 6:05p
SG : Singapore: SGX
+17.32 +0.56%
Volume: 0.00
Dec. 1, 2023 5:20p
TW : Taiwan Stock Exchange
+4.50 +0.03%
Volume: 0.00
Dec. 1, 2023 1:31p
ID : Indonesia Stock Exchange
-20.84 -0.29%
Volume: 0.00
Dec. 1, 2023 4:00p
$ 258.83
+4.90 +1.93%
Volume: 1.81M
Nov. 30, 2023 4:00p
P/E Ratio
Dividend Yield
Market Cap
$63.84 billion
Rev. per Employee
+17.22 +0.38%
Volume: 0.00
Nov. 30, 2023 5:04p
US : Dow Jones Global
+520.47 +1.47%
Volume: 0.00
Nov. 30, 2023 5:04p
US : Nasdaq
-32.27 -0.23%
Volume: 5.77B
Nov. 30, 2023 5:16p
US : Tullett Prebon
-0.3370 -0.2274%
Volume: 0.0000
Dec. 1, 2023 4:59a

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