Asian shares track Wall St drop as inflation fears drag on

Jun 26, 2022, 9:01 AM | Updated: Jun 28, 2022, 10:11 pm
FILE - A street sign is seen in front of the New York Stock Exchange in New York, Tuesday, June 14,...

FILE - A street sign is seen in front of the New York Stock Exchange in New York, Tuesday, June 14, 2022. Stocks are rising solidly higher in early trading on Wall Street Tuesday, June 28. Travel-related companies were among the biggest winners after China eased a quarantine requirement for people arriving from abroad, raising hopes that the severe pandemic lockdowns there might be starting to ease.(AP Photo/Seth Wenig, File)

(AP Photo/Seth Wenig, File)

              FILE - A street sign is seen in front of the New York Stock Exchange in New York, Tuesday, June 14, 2022.  Stocks are rising solidly higher in early trading on Wall Street Tuesday, June 28. Travel-related companies were among the biggest winners after China eased a quarantine requirement for people arriving from abroad, raising hopes that the severe pandemic lockdowns there might be starting to ease.(AP Photo/Seth Wenig, File)
            
              A person wearing a protective mask walks under an intense sun in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm Wednesday, June 29, 2022, in Tokyo. Shares fell Wednesday in Asia after another broad decline on Wall Street as markets remain gripped by uncertainty over inflation, rising interest rates and the potential for a recession. (AP Photo/Eugene Hoshiko)
            
              A person rides a bicycle in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm Wednesday, June 29, 2022, in Tokyo. Shares fell Wednesday in Asia after another broad decline on Wall Street as markets remain gripped by uncertainty over inflation, rising interest rates and the potential for a recession. (AP Photo/Eugene Hoshiko)
            
              A person wearing a protective mask walks in front of an electronic stock board showing Japan's Nikkei 225 index Wednesday, June 29, 2022, in Tokyo. Shares fell Wednesday in Asia after another broad decline on Wall Street as markets remain gripped by uncertainty over inflation, rising interest rates and the potential for a recession. (AP Photo/Eugene Hoshiko)
            
              FILE - A street sign is seen in front of the New York Stock Exchange in New York, Tuesday, June 14, 2022.  Stocks are rising solidly higher in early trading on Wall Street Tuesday, June 28. Travel-related companies were among the biggest winners after China eased a quarantine requirement for people arriving from abroad, raising hopes that the severe pandemic lockdowns there might be starting to ease.(AP Photo/Seth Wenig, File)
            
              FILE - A street sign is seen in front of the New York Stock Exchange in New York, Tuesday, June 14, 2022.  Stocks are rising solidly higher in early trading on Wall Street Tuesday, June 28. Travel-related companies were among the biggest winners after China eased a quarantine requirement for people arriving from abroad, raising hopes that the severe pandemic lockdowns there might be starting to ease.(AP Photo/Seth Wenig, File)
            
              FILE - A street sign is seen in front of the New York Stock Exchange in New York, Tuesday, June 14, 2022.  Stocks are rising solidly higher in early trading on Wall Street Tuesday, June 28. Travel-related companies were among the biggest winners after China eased a quarantine requirement for people arriving from abroad, raising hopes that the severe pandemic lockdowns there might be starting to ease.(AP Photo/Seth Wenig, File)
            
              FILE - A street sign is seen in front of the New York Stock Exchange in New York, Tuesday, June 14, 2022.  Stocks are rising solidly higher in early trading on Wall Street Tuesday, June 28. Travel-related companies were among the biggest winners after China eased a quarantine requirement for people arriving from abroad, raising hopes that the severe pandemic lockdowns there might be starting to ease.(AP Photo/Seth Wenig, File)
            
              FILE - A street sign is seen in front of the New York Stock Exchange in New York, Tuesday, June 14, 2022.  Stocks are rising solidly higher in early trading on Wall Street Tuesday, June 28. Travel-related companies were among the biggest winners after China eased a quarantine requirement for people arriving from abroad, raising hopes that the severe pandemic lockdowns there might be starting to ease.(AP Photo/Seth Wenig, File)
            
              FILE - A street sign is seen in front of the New York Stock Exchange in New York, Tuesday, June 14, 2022.  Stocks are rising solidly higher in early trading on Wall Street Tuesday, June 28. Travel-related companies were among the biggest winners after China eased a quarantine requirement for people arriving from abroad, raising hopes that the severe pandemic lockdowns there might be starting to ease.(AP Photo/Seth Wenig, File)
            
              FILE - An NYSE sign is seen on the floor at the New York Stock Exchange in New York, June 15, 2022. Stocks are drifting mostly lower in early trading on Wall Street Monday, June 27, 2022 as the market cools off following a rare winning week and the best daily gain for the S&P 500 in two years. (AP Photo/Seth Wenig, file)
            
              People wearing face masks walk past a bank's electronic board showing the Hong Kong share index in Hong Kong, Tuesday, June 28, 2022. Asian shares were mixed Tuesday after a wobbly day on Wall Street as markets cooled off following a rare winning week. (AP Photo/Kin Cheung)
            
              A woman wearing a face mask walks past a bank's electronic board showing the Hong Kong share index in Hong Kong, Tuesday, June 28, 2022. Asian shares were mixed Tuesday after a wobbly day on Wall Street as markets cooled off following a rare winning week.(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, Tuesday, June 28, 2022. Asian shares were mixed Tuesday after a wobbly day on Wall Street as markets cooled off following a rare winning week.(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, Tuesday, June 28, 2022. Asian shares were mixed Tuesday after a wobbly day on Wall Street as markets cooled off following a rare winning week.(AP Photo/Kin Cheung)
            
              FILE - An NYSE sign is seen on the floor at the New York Stock Exchange in New York, June 15, 2022. Stocks are drifting mostly lower in early trading on Wall Street Monday, June 27, 2022 as the market cools off following a rare winning week and the best daily gain for the S&P 500 in two years. (AP Photo/Seth Wenig, file)
            
              FILE - An NYSE sign is seen on the floor at the New York Stock Exchange in New York, June 15, 2022. Stocks are drifting mostly lower in early trading on Wall Street Monday, June 27, 2022 as the market cools off following a rare winning week and the best daily gain for the S&P 500 in two years. (AP Photo/Seth Wenig, file)
            
              FILE - An NYSE sign is seen on the floor at the New York Stock Exchange in New York, June 15, 2022. Stocks are drifting mostly lower in early trading on Wall Street Monday, June 27, 2022 as the market cools off following a rare winning week and the best daily gain for the S&P 500 in two years. (AP Photo/Seth Wenig, file)
            
              FILE - An NYSE sign is seen on the floor at the New York Stock Exchange in New York, June 15, 2022. Stocks are drifting mostly lower in early trading on Wall Street Monday, June 27, 2022 as the market cools off following a rare winning week and the best daily gain for the S&P 500 in two years. (AP Photo/Seth Wenig, file)
            
              FILE - An NYSE sign is seen on the floor at the New York Stock Exchange in New York, June 15, 2022. Stocks are drifting mostly lower in early trading on Wall Street Monday, June 27, 2022 as the market cools off following a rare winning week and the best daily gain for the S&P 500 in two years. (AP Photo/Seth Wenig, file)
            
              FILE - An NYSE sign is seen on the floor at the New York Stock Exchange in New York, June 15, 2022. Stocks are drifting mostly lower in early trading on Wall Street Monday, June 27, 2022 as the market cools off following a rare winning week and the best daily gain for the S&P 500 in two years. (AP Photo/Seth Wenig, file)
            
              FILE - A pedestrian walks past the New York Stock Exchange, Monday, Jan. 24, 2022, in New York. Stocks are opening higher again on Wall Street Friday, June 24, keeping the market on track for solid weekly gains after two punishing weeks that brought back-to-back weekly drops of more than 5%.  (AP Photo/John Minchillo, File)
            
              A woman wearing a face mask walks past a bank's electronic board showing the Hong Kong share index in Hong Kong, Monday, June 27, 2022. Asian shares advanced Monday after Wall Street ended a rare winning week, capped by a 3.1% gain on Friday for the benchmark S&P 500. U.S. futures and oil prices also were higher. (AP Photo/Kin Cheung)
            
              A woman wearing a face mask walks past a bank's electronic board showing the Hong Kong share index in Hong Kong, Monday, June 27, 2022. Asian shares advanced Monday after Wall Street ended a rare winning week, capped by a 3.1% gain on Friday for the benchmark S&P 500. U.S. futures and oil prices also were higher. (AP Photo/Kin Cheung)
            
              People wearing face masks walk past a bank's electronic board showing the Hong Kong share index in Hong Kong, Monday, June 27, 2022. Asian shares advanced Monday after Wall Street ended a rare winning week, capped by a 3.1% gain on Friday for the benchmark S&P 500. U.S. futures and oil prices also were higher. (AP Photo/Kin Cheung)

BANGKOK (AP) — Shares skidded in Asia on Wednesday after another broad decline on Wall Street as markets remain gripped by uncertainty over inflation, rising interest rates and the potential for a recession.

U.S. futures edged higher while oil prices fell back.

A weaker-than-expected U.S. consumer confidence reading highlighted worsening consumer expectations due to persistently high inflation.

That “dragged equities lower as sentiment soured for risky assets,” Anderson Alves of ActivTrades, said in a commentary.

Investors are awaiting comments later in the day by Federal Reserve Chair Jerome Powell and other top central bankers, he said.

Tokyo’s Nikkei 225 index lost 1% to 26,769.52 while the Kospi in Seoul fell 1.4% to 2,386.88. The Hang Seng in Hong Kong declined 1.6% to 22,053.86. The Shanghai Composite index sank 0.8% to 3,383.05.

Australia’s S&P/ASX 200 gave up 1.1% to 6,692.50. Bangkok and India also declined.

On Tuesday, the S&P 500 ended 2% lower at 3,821.55, while the Dow dropped 1.6% to 30,946.99. The tech-heavy Nasdaq slid 3% to 11,181.54.

The Russell 2000 gave up 1.9% to 1,738.84. The indexes are all on pace to for losses of 6% or more in June.

Roughly 85% of the stocks in the benchmark S&P 500 closed in the red. Technology, communications and health care stocks accounted for a big share of the decline. Retailers and other companies that rely on direct consumer spending also helped pull the index lower. Energy stocks, the only sector in the index to notch gains this year, rose as crude oil prices headed higher.

Conference Board reported that its consumer confidence index fell in June to its lowest level in more than a year, results that were much weaker than economists expected.

Investors face a pervasive list of concerns centering around rising inflation squeezing businesses and consumers. Supply chain problems that have been at the root of rising inflation were made worse over the last several months by increased restrictions in China related to COVID-19.

Businesses have been raising prices on everything from food to clothing. Russia’s invasion of Ukraine in February put even more pressure on consumers by raising energy prices and pumping gasoline prices to record highs.

Consumers were already shifting spending from goods to services as the economy recovered from the pandemic’s impact, but the intensified pressure from inflation has prompted a sharper shift away from discretionary items like electronics to necessities.

Central banks are raising rates to try and temper inflation after years of holding rates down to help economic growth but investors fear they could go too far and actually push economies into a recession.

Investors are awaiting remarks expected for midweek by central bank leaders including Fed Chair Jerome Powell and European Central Bank chief Christine Lagarde. They will also get another update on U.S. economic growth on Wednesday when the Commerce Department releases a report on first-quarter gross domestic product.

Wall Street is also preparing for the latest round of corporate earnings in the next few weeks, which will help paint a clearer picture of how companies are dealing with the squeeze from rising costs and consumers curtailing some spending.

Athletic footwear and apparel giant Nike fell 7% after giving investors a cautious update on the potential hit to revenue because of lockdowns in China. The company relies on China for roughly 17% of its revenue, according to FactSet.

Wynn Resorts rose 3.2% and Las Vegas Sands added 4%. The companies, which have major gambling businesses in China, got a boost after China eased a quarantine requirement for people arriving from abroad.

Technology and communications companies were among the biggest losers Tuesday. Microsoft fell 3.2% and Apple dropped 3%. Google parent Alphabet slid 3.3%.

Energy stocks made solid gains as U.S. crude oil prices rose 2%.

In other trading Wednesday:

The yield on the 10-year Treasury note, which helps set mortgage rates, slipped to 3.17% from 3.19%.

U.S. benchmark crude oil slipped 54 cents to $111.22 per barrel in electronic trading on the New York Mercantile Exchange.

Brent crude lost 62 cents to $113.18 per barrel.

The dollar fell to 136.03 Japanese yen from 136.12 yen late Tuesday. The euro weakened to $1.0509 from $1.0522.

___

AP Business Writers Damian J. Troise and Alex Veiga contributed.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Asian shares track Wall St drop as inflation fears drag on