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Aug. 31, 2022, 12:08 a.m. EDT

Asian markets slip on Fed rate-hike fears, weaker China manufacturing data

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By Associated Press

BEIJING — Asian stocks followed Wall Street lower Thursday after strong U.S. jobs data fueled expectations of further interest rate hikes and Chinese manufacturing activity weakened.

The Nikkei 225 /zigman2/quotes/210597971/delayed JP:NIK -0.35% in Tokyo shed 0.4% and the Hang Seng /zigman2/quotes/210598030/delayed HK:HSI -0.49% in Hong Kong slipped 0.5%. The Shanghai Composite Index /zigman2/quotes/210598127/delayed CN:SHCOMP +0.40% fell 1.2% after a monthly index of manufacturing showed activity contracted again in August.

The Kospi /zigman2/quotes/210598069/delayed KR:180721 -0.14% in South Korea rose 0.4% while Sydney’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO +0.24% was little changed. Benchmarks in New Zealand /zigman2/quotes/211587880/delayed NZ:NZ50GR +0.54% and Taiwan /zigman2/quotes/210597977/delayed TW:Y9999 -0.04% advanced while Singapore /zigman2/quotes/210597985/delayed SG:STI -0.26% and Indonesia /zigman2/quotes/210597981/delayed ID:JAKIDX -0.39% declined.

U.S. government data Tuesday that showed there were two jobs for every unemployed person in July appeared to support arguments the economy can tolerate more rate hikes to tame inflation that is running at multi-decade highs. Some investors had hoped the Federal Reserve would back off due to indications economic activity is cooling.

The jobs data “supported the argument for the Fed to stick to an aggressive stance,” said Edward Moya of Oanda in a report.

Investors worry rate hikes by the Fed and other central banks in Europe and Asia to extinguish an inflation surge might derail global economic growth.

Chair Jerome Powell indicated Friday the Fed will stick to its strategy of rate hikes. The Fed has raised rates four times this year. Two of those were by 0.75 percentage points, three times the usual margin.

Traders appear to expect a 0.75 percentage-point hike in September, a half-point in November and 0.25 points in December, according to Moya.

“If the labor market doesn’t break and the consumer remains resilient, Wall Street might start pricing in rate hikes for February and March,” Moya wrote.

On Wall Street, the benchmark S&P 500 index /zigman2/quotes/210599714/realtime SPX -0.03% fell 1.1% to 3,986.16. That brought its decline over the past five days to 5.5%.

The Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +0.45% dropped 1% to 31,790.87. The Nasdaq composite /zigman2/quotes/210598365/realtime COMP -0.52% lost 1.1% to 11,883.14.

The U.S. government reported there were were  11.2 million open jobs  on the last day of July. That was up from 11 million in June, and June’s figure was also revised higher.

In energy markets, benchmark U.S. crude gained 89 cents to $92.53 per barrel in electronic trading on the New York Mercantile Exchange. The contract plunged $5.37 to $91.64 on Tuesday. Brent crude , used to price international trading, rose 93 cents to $98.77 per barrel in London.

The dollar /zigman2/quotes/210561789/realtime/sampled USDJPY -0.0366% edged down to 138.58 yen from Tuesday’s 138.67 yen.

/zigman2/quotes/210597971/delayed
JP : Nikkei
28,283.03
-100.06 -0.35%
Volume: 0.00
Nov. 25, 2022 3:15p
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/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
17,573.58
-87.32 -0.49%
Volume: 3.18M
Nov. 25, 2022 4:08p
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/zigman2/quotes/210598127/delayed
CN : China: Shanghai
3,101.69
+12.38 +0.40%
Volume: 31.14B
Nov. 25, 2022 3:00p
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/zigman2/quotes/210598069/delayed
KR : Korea Exchange
2,437.86
-3.47 -0.14%
Volume: 438,394
Nov. 25, 2022 3:30p
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/zigman2/quotes/210598100/delayed
AU : S&P ASX
7,259.50
+17.70 +0.24%
Volume: 552,057
Nov. 25, 2022 4:55p
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/zigman2/quotes/211587880/delayed
NZ : New Zealand: NZX
11,382.56
+60.85 +0.54%
Volume: 0.00
Nov. 25, 2022 5:00p
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/zigman2/quotes/210597977/delayed
TW : Taiwan Stock Exchange
14,778.51
-5.49 -0.04%
Volume: 0.00
Nov. 25, 2022 1:33p
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/zigman2/quotes/210597985/delayed
SG : Singapore: SGX
3,244.55
-8.33 -0.26%
Volume: 0.00
Nov. 25, 2022 5:20p
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/zigman2/quotes/210597981/delayed
ID : Indonesia Stock Exchange
7,053.15
-27.37 -0.39%
Volume: 0.00
Nov. 25, 2022 3:00p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
4,026.12
-1.14 -0.03%
Volume: 0.00
Nov. 25, 2022 2:32p
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
34,347.03
+152.97 +0.45%
Volume: 0.00
Nov. 25, 2022 2:32p
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/zigman2/quotes/210598365/realtime
US : Nasdaq
11,226.36
-58.96 -0.52%
Volume: 2.23B
Nov. 25, 2022 4:30p
loading...
/zigman2/quotes/210561789/realtime/sampled
US : Tullett Prebon
139.1250
-0.0510 -0.0366%
Volume: 0.0000
Nov. 25, 2022 4:59p
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