Asian stocks fall ahead of US inflation

Aug 8, 2022, 12:20 PM | Updated: Aug 9, 2022, 9:40 pm
People wearing face masks walk past a bank's electronic board showing the Hong Kong share index in ...

People wearing face masks walk past a bank's electronic board showing the Hong Kong share index in Hong Kong, Wednesday, Aug. 10, 2022. Asian stocks followed Wall Street lower Wednesday ahead of U.S. inflation data that traders worry will show upward pressure on prices still is too strong for the Federal Reserve to ease off interest rate hikes. (AP Photo/Kin Cheung)

(AP Photo/Kin Cheung)

BEIJING (AP) — Asian stocks followed Wall Street lower Wednesday ahead of U.S. inflation data that traders worry will show upward pressure on prices still is too strong for the Federal Reserve to ease off interest rate hikes.

Shanghai, Tokyo, Hong Kong and Seoul declined. Oil prices edged lower.

Wall Street’s benchmark S&P 500 index lost 0.4% on Tuesday for its fourth daily decline following disappointing earnings reports.

Data on Wednesday are expected to show headline U.S. inflation in July eased from the previous month’s four-decade high of 9.1%. But a survey by FactSet found traders expect core inflation, which strips out volatile food and energy, leaving rent and other costs, to edge higher. That is despite other data that show economic activity cooling.

Anything above 8% is “still too high” for the Fed, Tan Boon Heng of Mizuho Bank said in a report.

“The fight to tackle inflation is far from over,” Tan said.

Investors worry efforts by the Fed and other central banks in Europe and Asia to cool inflation that is at multi-decade highs might derail global economic growth.

On Wall Street, the S&P 500 fell to 4,122.47 while traders waited for more evidence of how aggressively the Fed might pursue more rate hikes.

The Fed has raised rates four times this year, including twice by 0.75 percentage points, triple its usual margin. Investors expect another hike of 0.75 percentage points in September after data last week showed hiring was stronger than forecast.

Fed officials acknowledge there is a danger the U.S. economy might tip into recession, but some point to the strong job market as evidence it can tolerate more rate hikes.

The Dow slipped 0.2% to close at 32,774.41. The Nasdaq dropped 1.2% to 12,493.93. The Russell 2000 ended down 1.5%, at 1,912.89.

Chipmaker Micron Technology fell 3.7% after warning investors that revenue could fall short of forecasts because of weakening demand. That warning hit other chipmakers hard, with Nvidia shedding 4%.

Norwegian Cruise Line plunged 10.6% for the biggest drop in the S&P 500 after reporting disappointing results and a weak revenue forecast. Expedia fell 1.6% and American Airlines fell 2.7%.

Markets also have been rattled by Russia’s war on Ukraine, which caused a spike in prices of oil, wheat and other commodities, and uncertainty about Chinese anti-virus measures that disrupted manufacturing and trade.

In energy markets, benchmark U.S. crude lost 30 cents to $90.20 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 26 cents to $90.50 on Tuesday. Brent crude, the price basis for international trading, shed 25 cents to $96.06 per barrel in London. It declined 34 cents the previous session to $96.31.

The dollar declined to 135.02 yen from Tuesday’s 135.18 yen. The euro rose to $1.0215 from $1.0205.

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

AP

President Joe Biden speaks during the White House Conference on Hunger, Nutrition, and Health, at t...
Associated Press

Biden to oil industry: Don’t raise prices as hurricane nears

WASHINGTON (AP) — President Joe Biden on Wednesday warned oil and gas companies against increasing prices for consumers as Hurricane Ian neared landfall along Florida’s southwest coast. “Do not, let me repeat, do not use this as an excuse to raise gasoline prices or gouge the American people,” Biden said at the start of a […]
1 day ago
Associated Press

14 guards indicted on misconduct charges at women’s prison

TRENTON, N.J. (AP) — A New Jersey grand jury has indicted 14 corrections officers on charges stemming from what authorities said was a brutal attack in 2021 on inmates at the state’s only prison for women. The grand jury handed up the indictments after a more than yearlong investigation into the events at the Edna […]
1 day ago
FILE - In this aerial photo taken with a drone, workers in protective suits continue to clean an oi...
Associated Press

New report: Oil spills from offshore transportation way down

NEW ORLEANS (AP) — Oil and natural gas spills from tankers and pipelines in U.S. waters dropped dramatically from the last decade of the 1990s to the one from 2010 through 2019, according to a federal report Wednesday. The amounts spilled and dumped in wastewater from drilling rigs and production platforms rose, but — if […]
1 day ago
Associated Press

2 children swept away in rain-swollen gully in El Salvador

SAN SALVADOR, El Salvador (AP) — Two children drowned in eastern El Salvador after being swept away in a rain-swollen gully on their way home from school. El Salvador’s Civil Defense agency said a third child was rescued and taken to a hospital for medical attention. Residents of the area eventually recovered the two victims’ […]
1 day ago
FILE - Katie Couric appears at the Vanity Fair Oscar Party on March 27, 2022, in Beverly Hills, Cal...
Associated Press

Katie Couric says she’s been treated for breast cancer

NEW YORK (AP) — Katie Couric said Wednesday that she’d been diagnosed with breast cancer, and underwent surgery and radiation treatment this summer to treat the tumor. Couric, who memorably was tested for colon cancer on the “Today” show in 2000, announced her diagnosis in an essay on her website, saying she hoped it would […]
1 day ago
Rabbi David Wolpe speaks to congregants at Sinai Temple Friday, Sept. 23, 2022, in Los Angeles. One...
Associated Press

Clergy strive to reconcile politically divided congregations

One member of Rabbi David Wolpe’s diverse congregation left because Wolpe would not preach sermons criticizing Donald Trump. Scores of others left over resentment with the synagogue’s rules for combating COVID-19. But Wolpe remains steadfast in his resolve to avoid politics when he preaches at Sinai Temple in Los Angeles. “It is not easy to […]
1 day ago

Sponsored Articles

Anacortes Christmas Tree...

Come one, come all! Food, Drink, and Coastal Christmas – Anacortes has it all!

Come celebrate Anacortes’ 11th annual Bier on the Pier! Bier on the Pier takes place on October 7th and 8th and features local ciders, food trucks and live music - not to mention the beautiful views of the Guemes Channel and backdrop of downtown Anacortes.
Swedish Cyberknife Treatment...

The revolutionary treatment of Swedish CyberKnife provides better quality of life for majority of patients

There are a wide variety of treatments options available for men with prostate cancer. One of the most technologically advanced treatment options in the Pacific Northwest is Stereotactic Body Radiation Therapy using the CyberKnife platform at Swedish Medical Center.
Work at Zum Services...

Seattle Public Schools announces three-year contract with Zum

Seattle Public Schools just announced a three-year contract with a brand-new company to the Pacific Northwest to assist with their student transportation: Zum.
Swedish Cyberknife 900x506...

June is Men’s Health Month: Here’s Why It’s Important To Speak About Your Health

According to the Centers for Disease Control and Prevention, men in the United States, on average, die five years earlier than women.
...

Anacortes – A Must Visit Summertime Destination

While Anacortes is certainly on the way to the San Juan Islands (SJI), it is not just a destination to get to the ferry… Anacortes is a destination in and of itself!
...

Ready for your 2022 Alaskan Adventure with Celebrity Cruises?

Celebrity Cruises SPONSORED — A round-trip Alaska cruise from Seattle is an amazing treat for you and a loved one. Not only are you able to see and explore some of the most incredible and visually appealing natural sights on the planet, but you’re also able to relax and re-energize while aboard a luxury cruise […]
Asian stocks fall ahead of US inflation