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Oct. 12, 2021, 3:15 a.m. EDT

Asian stocks retreat as surging energy prices spark inflation concerns

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By Associated Press

Shares retreated in Asia on Tuesday as surging prices of oil, coal and other energy added to concerns over inflation.

Benchmarks declined in Tokyo, Hong Kong and Shanghai. Oil prices edged lower after U.S. benchmark crude oil closed above $80 per barrel on Monday. It traded briefly above $81 per barrel on Monday for the first time in seven years.

Costs of oil, coal and natural gas have been climbing, adding to price pressures that might lead the Federal Reserve and other central banks to pull back more quickly on their support for markets.

Tokyo’s Nikkei 225 index /zigman2/quotes/210597971/delayed JP:NIK +1.00% lost 1% to 28,216.15 and the Hang Seng /zigman2/quotes/210598030/delayed HK:HSI -0.09% in Hong Kong fell 1.6%, to 24,905. The Shanghai Composite index /zigman2/quotes/210598127/delayed CN:SHCOMP +0.94% shed 1.2% to 3,545 and the S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO +0.22% slipped 0.2% to 7,280. Korea’s KOSPI index /zigman2/quotes/210598069/delayed KR:180721 +0.78% dropped 1.3% to 2,916.

Shares also fell in India and Taiwan, but rose in Jakarta and Bangkok.

Energy demand has bounced back faster than output as economies recover from the pandemic, driving prices higher. Other factors, including a shortage of truck drivers, shipping disruptions, flooding of coal mines in China and drought that has dented hydropower generation are also pushing prices higher.

“Energy crisis uncertainty will likely keep crude prices heading higher until the oil market seems likely it is heading towards balance. The natural gas shortage is not going away anytime soon and that will keep providing additional demand for crude,” Edward Moya of Oanda said in a commentary.

U.S. benchmark crude oil /zigman2/quotes/209723049/delayed CL00 -0.42% rose 34 cents to $80.78 per barrel in electronic trading on the New York Mercantile Exchange. It gained 1.5% to $80.52 per barrel on Monday.

Brent crude , the international pricing standard, rose 22 cents to $83.87 per barrel.

On Wall Street, stocks closed broadly lower Monday, with the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.84% down 0.7% at 4,361.19. The Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.17% also fell 0.7%, to 34,496.06, and the Nasdaq /zigman2/quotes/210598365/realtime COMP -1.92% fell 0.6% to 14,486.20. Most sectors finished in the red.

Technology and communications stocks had some of the biggest losses. Facebook /zigman2/quotes/205064656/composite FB -1.14% fell 1.4% and Intuit /zigman2/quotes/203136605/composite INTU -3.59% fell 1.1%.

Bond trading was closed for the Columbus Day holiday.

Investors are looking ahead to the beginning of company earnings this week.Companies in a wide range of industries are warning that supply chain problems and higher raw materials costs could crimp their financial results for the rest of the year. Wall Street is closely monitoring whether those higher costs and resulting higher prices for goods will hurt consumer spending, which is a key driver of economic growth.

Stocks have been swaying between between gains and losses as investors try to better gauge the direction of the economic recovery through the rest of the year.Banks will be among the first big companies to report their latest financial results and give investors more insight into how companies are faring amid concerns over the lingering virus pandemic and rising inflation.

JPMorgan Chase /zigman2/quotes/205971034/composite JPM -1.81% delivers its results on Wednesday. Bank of America /zigman2/quotes/200894270/composite BAC -2.27% , Wells Fargo /zigman2/quotes/203790192/composite WFC -2.37% and Citigroup /zigman2/quotes/207741460/composite C -1.65% will report results on Thursday.

Delta Air Lines /zigman2/quotes/200327741/composite DAL -1.80% will report its latest results on Wednesday. The airline industry is still struggling to recover from the pandemic shutdowns that began 18 months ago. Investors will be closely monitoring the industry’s results to see how much of an impact the summer surge of COVID-19 cases had on the industry.

Investors are also looking ahead to economic data this week that could shed more light on what’s going on with inflation. The Labor Department will release its Consumer Price Index on Wednesday and its Producer Price Index on Thursday.

The reports detail pressure from inflation on consumers and businesses.

The U.S. dollar edged up to 113.33 Japanese yen /zigman2/quotes/210561789/realtime/sampled USDJPY -0.3287% from 113.32 yen late Monday. The euro /zigman2/quotes/210561242/realtime/sampled EURUSD +0.0973% climbed to $1.1557 from $1.1553.

/zigman2/quotes/210597971/delayed
JP : Nikkei
28,029.57
+276.20 +1.00%
Volume: 0.00
Dec. 3, 2021 3:15p
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/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
23,766.69
-22.24 -0.09%
Volume: 2.72M
Dec. 3, 2021 4:08p
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/zigman2/quotes/210598127/delayed
CN : China: Shanghai
3,607.43
+33.60 +0.94%
Volume: 37.76B
Dec. 3, 2021 3:01p
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/zigman2/quotes/210598100/delayed
AU : S&P ASX
7,241.20
+16.00 +0.22%
Volume: 631,364
Dec. 3, 2021 5:19p
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/zigman2/quotes/210598069/delayed
KR : Korea Exchange
2,968.33
+23.06 +0.78%
Volume: 486,749
Dec. 3, 2021 3:30p
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/zigman2/quotes/209723049/delayed
US : U.S.: Nymex
$ 66.22
-0.28 -0.42%
Volume: 429,169
Dec. 3, 2021 5:00p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
4,538.43
-38.67 -0.84%
Volume: 2.71B
Dec. 3, 2021 5:35p
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
34,580.08
-59.71 -0.17%
Volume: 444.85M
Dec. 3, 2021 5:35p
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/zigman2/quotes/210598365/realtime
US : Nasdaq
15,085.47
-295.85 -1.92%
Volume: 4.96M
Dec. 3, 2021 5:16p
loading...
/zigman2/quotes/205064656/composite
US : U.S.: Nasdaq
$ 306.84
-3.55 -1.14%
Volume: 27.47M
Dec. 3, 2021 4:00p
P/E Ratio
21.91
Dividend Yield
N/A
Market Cap
$863.43 billion
Rev. per Employee
$1.47M
loading...
/zigman2/quotes/203136605/composite
US : U.S.: Nasdaq
$ 647.96
-24.16 -3.59%
Volume: 2.28M
Dec. 3, 2021 4:00p
P/E Ratio
85.57
Dividend Yield
0.42%
Market Cap
$190.32 billion
Rev. per Employee
$713,556
loading...
/zigman2/quotes/205971034/composite
US : U.S.: NYSE
$ 158.29
-2.92 -1.81%
Volume: 12.68M
Dec. 3, 2021 4:00p
P/E Ratio
10.01
Dividend Yield
2.53%
Market Cap
$476.42 billion
Rev. per Employee
$492,730
loading...
/zigman2/quotes/200894270/composite
US : U.S.: NYSE
$ 43.87
-1.02 -2.27%
Volume: 74.61M
Dec. 3, 2021 4:00p
P/E Ratio
13.12
Dividend Yield
1.91%
Market Cap
$367.38 billion
Rev. per Employee
$445,624
loading...
/zigman2/quotes/203790192/composite
US : U.S.: NYSE
$ 47.75
-1.16 -2.37%
Volume: 29.22M
Dec. 3, 2021 4:02p
P/E Ratio
11.28
Dividend Yield
1.68%
Market Cap
$195.02 billion
Rev. per Employee
$305,853
loading...
/zigman2/quotes/207741460/composite
US : U.S.: NYSE
$ 62.76
-1.05 -1.65%
Volume: 25.46M
Dec. 3, 2021 4:02p
P/E Ratio
5.87
Dividend Yield
3.25%
Market Cap
$126.62 billion
Rev. per Employee
$423,538
loading...
/zigman2/quotes/200327741/composite
US : U.S.: NYSE
$ 35.98
-0.66 -1.80%
Volume: 25.51M
Dec. 3, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$23.45 billion
Rev. per Employee
$231,014
loading...
/zigman2/quotes/210561789/realtime/sampled
US : Tullett Prebon
112.8120
-0.3720 -0.3287%
Volume: 0.0000
Dec. 3, 2021 4:59p
loading...
/zigman2/quotes/210561242/realtime/sampled
US : Tullett Prebon
1.1314
+0.0011 +0.0973%
Volume: 0.0000
Dec. 3, 2021 4:59p
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