AP

Asian stocks follow Wall St lower on economy fears

Jun 15, 2022, 11:32 AM | Updated: Jun 16, 2022, 9:23 pm

A trader works on the floor at the New York Stock Exchange in New York, Thursday, June 16, 2022. Ma...

A trader works on the floor at the New York Stock Exchange in New York, Thursday, June 16, 2022. Markets worldwide are back to tumbling on Thursday as worries about a fragile economy roar back to the fore. The S&P 500 was 3.9% lower in afternoon trading, more than reversing its blip of a 1.5% rally from a day before. (AP Photo/Seth Wenig)

(AP Photo/Seth Wenig)


              A trader works on the floor at the New York Stock Exchange in New York, Thursday, June 16, 2022. Markets worldwide are back to tumbling on Thursday as worries about a fragile economy roar back to the fore. The S&P 500 was 3.9% lower in afternoon trading, more than reversing its blip of a 1.5% rally from a day before. (AP Photo/Seth Wenig)
            
              Traders work on the floor at the New York Stock Exchange in New York, Thursday, June 16, 2022. Markets worldwide are back to tumbling on Thursday as worries about a fragile economy roar back to the fore. The S&P 500 was 3.9% lower in afternoon trading, more than reversing its blip of a 1.5% rally from a day before. (AP Photo/Seth Wenig)
            
              Currency traders watch monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Friday, June 17, 2022. Asian stock markets were mostly lower Friday after Wall Street fell on fears interest rate hikes will depress global economic activity. (AP Photo/Ahn Young-joon)
            
              A currency trader watches monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Friday, June 17, 2022. Asian stock markets were mostly lower Friday after Wall Street fell on fears interest rate hikes will depress global economic activity. (AP Photo/Ahn Young-joon)
            
              A currency trader watches monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Friday, June 17, 2022. Asian stock markets were mostly lower Friday after Wall Street fell on fears interest rate hikes will depress global economic activity. (AP Photo/Ahn Young-joon)
            
              A currency trader watches monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Friday, June 17, 2022. Asian stock markets were mostly lower Friday after Wall Street fell on fears interest rate hikes will depress global economic activity. (AP Photo/Ahn Young-joon)
            
              A currency trader gestures in front of the screens showing the Korea Composite Stock Price Index (KOSPI), left, and the exchange rate of South Korean won against the U.S. dollar at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Friday, June 17, 2022. Asian stock markets were mostly lower Friday after Wall Street fell on fears interest rate hikes will depress global economic activity. (AP Photo/Ahn Young-joon)
            
              A trader works on the floor at the New York Stock Exchange in New York, Thursday, June 16, 2022. Markets worldwide are back to tumbling on Thursday as worries about a fragile economy roar back to the fore. The S&P 500 was 3.9% lower in afternoon trading, more than reversing its blip of a 1.5% rally from a day before. (AP Photo/Seth Wenig)
            
              Traders work on the floor at the New York Stock Exchange in New York, Thursday, June 16, 2022. Markets worldwide are back to tumbling on Thursday as worries about a fragile economy roar back to the fore. The S&P 500 was 3.9% lower in afternoon trading, more than reversing its blip of a 1.5% rally from a day before. (AP Photo/Seth Wenig)
            
              Currency traders watch monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Friday, June 17, 2022. Asian stock markets were mostly lower Friday after Wall Street fell on fears interest rate hikes will depress global economic activity. (AP Photo/Ahn Young-joon)
            
              A currency trader watches monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Friday, June 17, 2022. Asian stock markets were mostly lower Friday after Wall Street fell on fears interest rate hikes will depress global economic activity. (AP Photo/Ahn Young-joon)
            
              A currency trader watches monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Friday, June 17, 2022. Asian stock markets were mostly lower Friday after Wall Street fell on fears interest rate hikes will depress global economic activity. (AP Photo/Ahn Young-joon)
            
              A currency trader watches monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Friday, June 17, 2022. Asian stock markets were mostly lower Friday after Wall Street fell on fears interest rate hikes will depress global economic activity. (AP Photo/Ahn Young-joon)
            
              A currency trader gestures in front of the screens showing the Korea Composite Stock Price Index (KOSPI), left, and the exchange rate of South Korean won against the U.S. dollar at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Friday, June 17, 2022. Asian stock markets were mostly lower Friday after Wall Street fell on fears interest rate hikes will depress global economic activity. (AP Photo/Ahn Young-joon)
            
              Traders work on the floor at the New York Stock Exchange in New York, Wednesday, June 15, 2022. U.S. stocks are rallying Wednesday and are on track for their first gain in six days. But more turbulence may be ahead when the Federal Reserve announces in the afternoon how sharply it's raising interest rates. (AP Photo/Seth Wenig)
            
              As the Federal Reserve announces a rate change, traders work on the floor at the New York Stock Exchange in New York, Wednesday, June 15, 2022. The Federal Reserve intensified its drive to tame high inflation by raising its key interest rate by three-quarters of a point — its largest hike in nearly three decades — and signaling more large rate increases to come that would raise the risk of another recession. (AP Photo/Seth Wenig)
            
              As the Federal Reserve announces a rate change, a trader works on the floor at the New York Stock Exchange in New York, Wednesday, June 15, 2022. (AP Photo/Seth Wenig)
            
              A woman wearing a face mask walks past a bank's electronic board showing the Hong Kong share index in Hong Kong, Thursday, June 16, 2022. Asian shares advanced Thursday after the Federal Reserve raised its key interest rate by three-quarters of a point and signaled more rate hikes were coming to fight inflation. (AP Photo/Kin Cheung)
            
              A currency trader passes by screens showing the Korea Composite Stock Price Index (KOSPI), center left, and the exchange rate of South Korean won against the U.S. dollar, center right, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, June 16, 2022. Asian shares advanced Thursday after the Federal Reserve raised its key interest rate by three-quarters of a point and signaled more rate hikes were coming to fight inflation. (AP Photo/Ahn Young-joon)
            
              A woman wearing a face mask walks past a bank's electronic board showing the Hong Kong share index in Hong Kong, Thursday, June 16, 2022. Asian shares advanced Thursday after the Federal Reserve raised its key interest rate by three-quarters of a point and signaled more rate hikes were coming to fight inflation. (AP Photo/Kin Cheung)
            
              A currency trader stretches while working at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, June 16, 2022. Asian shares advanced Thursday after the Federal Reserve raised its key interest rate by three-quarters of a point and signaled more rate hikes were coming to fight inflation. (AP Photo/Ahn Young-joon)
            
              A currency trader watches monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, June 16, 2022. Asian shares advanced Thursday after the Federal Reserve raised its key interest rate by three-quarters of a point and signaled more rate hikes were coming to fight inflation. (AP Photo/Ahn Young-joon)
            
              A woman wearing a face mask walks past a bank's electronic board showing the Hong Kong share index in Hong Kong, Thursday, June 16, 2022. Asian shares advanced Thursday after the Federal Reserve raised its key interest rate by three-quarters of a point and signaled more rate hikes were coming to fight inflation. (AP Photo/Kin Cheung)
            
              A man wearing a face mask walks past a bank's electronic board showing the Hong Kong share index in Hong Kong, Thursday, June 16, 2022. Asian shares advanced Thursday after the Federal Reserve raised its key interest rate by three-quarters of a point and signaled more rate hikes were coming to fight inflation. (AP Photo/Kin Cheung)
            
              Federal Reserve Chairman Jerome Powell news conference is displayed on televisions while traders work on the floor at the New York Stock Exchange in New York, Wednesday, June 15, 2022. The Federal Reserve on Wednesday intensified its drive to tame high inflation by raising its key interest rate by three-quarters of a point — its largest hike in nearly three decades — and signaling more large rate increases to come that would raise the risk of another recession. (AP Photo/Seth Wenig)
            
              Federal Reserve Chairman Jerome Powell speaks during a news conference following an Open Market Committee meeting at the Federal Reserve Board Building, Wednesday, June 15, 2022, in Washington. (AP Photo/Jacquelyn Martin)

BEIJING (AP) — Asian stock markets were mostly lower Friday after Wall Street fell on fears interest rate hikes will depress global economic activity.

Tokyo, Seoul and Sydney fell. Shanghai and Hong Kong advanced. Oil prices edged lower but stayed above $115 per barrel.

Wall Street’s benchmark S&P 500 index tumbled 3.3% after Britain’s central bank followed the Federal Reserve in raising its key interest rate to cool surging price rises. Central banks in Switzerland and Taiwan also raised rates.

Investors worry the moves to control inflation that is running at four-decade highs might tip the U.S. and other major economies into recession.

“Pain is being inflicted almost everywhere and sharing doesn’t make it better in any way,” said Tan Boon Heng of Mizuho Bank in a report.

Markets were not assuaged by comments by President Joe Biden to The Associated Press on Thursday that he saw reasons for optimism about the economy.

A recession is “not inevitable,” Biden said.

The Shanghai Composite Index advanced less than 0.1% to 3,287.88 while the Nikkei 225 in Tokyo fell 2.3% to 25,822.56. The Hang Seng in Hong Kong gained 0.6% to 20,983.41.

The Kospi in Seoul retreated 1.2% to 2,420.34 and Sydney’s S&P-ASX 200 tumbled 2.1% to 6,450.30.

New Zealand, Bangkok and Jakarta declined while Singapore gained.

On Wall Street, the S&P 500 retreated to 3,666.77 for its sixth decline in the past seven trading sessions. All but 3% of stocks in the index fell.

The benchmark gave up its 1.5% gain of the previous day after the Fed announced a rate hike of 0.75 percentage points, three times is usual margin. Chair Jerome Powell said Wednesday the Fed is “not trying to induce a recession now.”

The S&P 500 is 23.6% below its Jan. 3 record. That erases gains from 2021, one of Wall Street’s best years this century.

The Dow Jones Industrial Average lost 2.4% to 3,666.77. The Nasdaq dropped 4.1% to 10,646.10.

Japan’s central bank wrapped up a two-day meeting Friday with no major changes to its ultra-low interest rate policy, imposed years ago to try to fend of deflation, or sinking prices. So far, it has avoided raising rates.

Along with increasing interest rates, the Fed is allowing some of the trillions of dollars of bonds it purchased through the pandemic to roll off its balance sheet. That should put upward pressure on longer-term interest rates.

Fewer American workers filed for unemployment benefits last week than a week before, a report showed on Thursday. But more signs of trouble have been emerging.

In energy markets, benchmark U.S. oil lost 57 cents to $117.02 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose $2.27 on Thursday to $117.58. Brent crude, the price basis for international trading, sank 47 cents to $119.34 per barrel in London. It gained $1.30 the previous session to $119.81.

The dollar gained to 133.40 yen from Thursday’s 132.00 yen. The euro declined to $1.0536 from $1.0573.

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