AP

Asian stocks follow Wall St down after Fed inflation report

Aug 16, 2022, 12:47 PM | Updated: Aug 17, 2022, 9:33 pm

FILE - Pedestrians walk past the New York Stock Exchange, on July 8, 2022, in New York.  Stocks are...

FILE - Pedestrians walk past the New York Stock Exchange, on July 8, 2022, in New York. Stocks are opening lower on Wall Street Wednesday, Aug. 17, as traders absorb some discouraging news about how much Americans are spending. (AP Photo/John Minchillo, file)

(AP Photo/John Minchillo, file)


              FILE - Pedestrians walk past the New York Stock Exchange, on July 8, 2022, in New York.  Stocks are opening lower on Wall Street Wednesday, Aug. 17,  as traders absorb some discouraging news about how much Americans are spending. (AP Photo/John Minchillo, file)
            
              FILE - Pedestrians walk past the New York Stock Exchange, on July 8, 2022, in New York.  Stocks are opening lower on Wall Street Wednesday, Aug. 17,  as traders absorb some discouraging news about how much Americans are spending. (AP Photo/John Minchillo, file)
            
              FILE - Pedestrians walk past the New York Stock Exchange, on July 8, 2022, in New York.  Stocks are opening lower on Wall Street Wednesday, Aug. 17,  as traders absorb some discouraging news about how much Americans are spending. (AP Photo/John Minchillo, file)
            
              FILE - Pedestrians walk past the New York Stock Exchange, on July 8, 2022, in New York.  Stocks are opening lower on Wall Street Wednesday, Aug. 17,  as traders absorb some discouraging news about how much Americans are spending. (AP Photo/John Minchillo, file)
            
              FILE - Pedestrians walk past the New York Stock Exchange, on July 8, 2022, in New York.  Stocks are opening lower on Wall Street Wednesday, Aug. 17,  as traders absorb some discouraging news about how much Americans are spending. (AP Photo/John Minchillo, file)
            
              FILE - Pedestrians walk past the New York Stock Exchange, on July 8, 2022, in New York.  Stocks are opening lower on Wall Street Wednesday, Aug. 17,  as traders absorb some discouraging news about how much Americans are spending. (AP Photo/John Minchillo, file)
            
              FILE - Pedestrians walk past the New York Stock Exchange, on July 8, 2022, in New York.  Stocks are opening lower on Wall Street Wednesday, Aug. 17,  as traders absorb some discouraging news about how much Americans are spending. (AP Photo/John Minchillo, file)
            
              FILE - Pedestrians walk past the New York Stock Exchange, on July 8, 2022, in New York.  Stocks are opening lower on Wall Street Wednesday, Aug. 17,  as traders absorb some discouraging news about how much Americans are spending. (AP Photo/John Minchillo, file)
            
              FILE - An NYSE sign is seen on the floor at the New York Stock Exchange in New York, on June 15, 2022.  Stocks are opening mostly lower on Wall Street Tuesday, Aug. 16,  despite some encouraging results from Walmart and Home Depot, which both beat analysts' forecasts for earnings in the latest quarter.  (AP Photo/Seth Wenig, File)
            
              A person wearing a protective mask stands in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm Wednesday, Aug. 17, 2022, in Tokyo. Asian shares were mostly higher Wednesday as regional markets looked to strong economic signs out of the U.S. and China as drivers of growth. (AP Photo/Eugene Hoshiko)
            
              A person wearing a protective mask walks in the rain past an electronic stock board showing Japan's Nikkei 225 and New York Dow indexes at a securities firm Wednesday, Aug. 17, 2022, in Tokyo. Asian shares were mostly higher Wednesday as regional markets looked to strong economic signs out of the U.S. and China as drivers of growth. (AP Photo/Eugene Hoshiko)
            
              A person wearing a protective mask stands in the rain in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm as a car goes by Wednesday, Aug. 17, 2022, in Tokyo. Asian shares were mostly higher Wednesday as regional markets looked to strong economic signs out of the U.S. and China as drivers of growth. (AP Photo/Eugene Hoshiko)
            
              A person adjusts a shower cap when a sudden rain started as she walks past an electronic stock board showing Japan's Nikkei 225 index at a securities firm Wednesday, Aug. 17, 2022, in Tokyo. Asian shares were mostly higher Wednesday as regional markets looked to strong economic signs out of the U.S. and China as drivers of growth. (AP Photo/Eugene Hoshiko)
            
              People walk past an electronic stock board showing Japan's Nikkei 225 index and U.S. dollar/Japanese Yen exchange rate at a securities firm Wednesday, Aug. 17, 2022, in Tokyo. Asian shares were mostly higher Wednesday as regional markets looked to strong economic signs out of the U.S. and China as drivers of growth. (AP Photo/Eugene Hoshiko)
            
              A person wearing a protective mask walks past an electronic stock board showing Japan's Nikkei 225 index at a securities firm Wednesday, Aug. 17, 2022, in Tokyo. Asian shares were mostly higher Wednesday as regional markets looked to strong economic signs out of the U.S. and China as drivers of growth. (AP Photo/Eugene Hoshiko)
            
              People wearing protective masks walk in the rain past an electronic stock board showing Japan's Nikkei 225 index at a securities firm Wednesday, Aug. 17, 2022, in Tokyo. Asian shares were mostly higher Wednesday as regional markets looked to strong economic signs out of the U.S. and China as drivers of growth. (AP Photo/Eugene Hoshiko)

BEIJING (AP) — Asian stock markets followed Wall Street lower Thursday after the Federal Reserve said U.S. inflation is too high, suggesting support for more aggressive interest rate hikes.

Shanghai, Tokyo, Hong Kong and Sydney declined. Oil prices edged higher.

Wall Street’s benchmark S&P 500 index lost 0.7% on Wednesday, ending a three-day series of rises, after notes from the Fed’s July 26-27 board meeting showed members thought inflation still is “unacceptably high” despite signs U.S. economic growth is weakening. It said the board saw “little evidence” inflation pressures are subsiding.

Investors worry aggressive rate hikes by the Fed and central banks in Europe and Asia to tame inflation that is running at multi-decade highs might derail global economic growth.

The Fed notes raised “the prospects of further tightening” even if the pace of hikes slows, while other investors see possible “excessive tightening dragging growth,” said Venkateswaran Lavanya of Mizuho Bank in a report.

The Shanghai Composite Index lost 0.5% to 3,276.62 and the Nikkei 225 in Tokyo sank 0.9% to 28,967.91. The Hang Seng in Hong Kong shed 0.5% to 19,821.28.

The Kospi in Seoul gave up 0.4% to 2,507.31 and Sydney’s S&P-ASX 200 retreated 0.3% to 7,109.20.

New Zealand and Bangkok declined while Singapore and Jakarta advanced.

On Wall Street, the S&P 500 fell to 4,274.04. The loss wiped out the week’s gains and left the index down 0.1% since Monday.

The Dow Jones Industrial Average sank 0.5% to 33,980.32 and the Nasdaq slid 1.3%. to 12,938.12.

The Commerce Department reported July retail sales were flat compared with the previous month, defying predictions of a slight increase. Retailers have warned high inflation will discourage consumers from spending on non-essentials.

Retail chain Target fell 2.7% after reporting a nearly 90% plunge in second quarter profits. Children’s clothing and accessories chain Children’s Place fell 11% after reporting a surprise loss due to supply problems and pressure from inflation.

Technology and communications stocks also fell.

The Fed notes Wednesday made clear the board plans to keep raising interest rates but gave no indication when or by how much.

The U.S. central bank has hiked its benchmark lending rate twice this year by 0.75 percentage points, triple its usual margin. Forecasters say another hike of the same size is possible at the Fed’s September meeting, though the likelihood has declined as data show the economy weakening.

In energy markets, benchmark U.S. crude rose 8 cents to $88.19 per barrel in electronic trading on the New York Mercantile Exchange. It jumped $1.58 to $88.11 on Wednesday. Brent crude, the price basis for international trading, gained 11 cents to $93.76 per barrel in London. It surged $1.31 the previous session to $93.65.

The dollar edged up to 135.06 yen from Wednesday’s 135.05 yen. The euro rose to $1.0183 from $1.0169.

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

AP

Image: Republican presidential candidate former President Donald Trump speaks at a Get Out The Vote...

Associated Press

Supreme Court agrees to decide if Trump can be prosecuted for election interference

The Supreme Court has agreed to decide whether the former president can be prosecuted on charges he interfered with the 2020 election.

1 day ago

mcconnell...

Michael Tackett, The Associated Press

McConnell will step down as the Senate Republican leader in November

McConnell said he plans to serve out his Senate term, which ends in January 2027, “albeit from a different seat in the chamber.”

1 day ago

Image: This combo image shows President Joe Biden, left, on Jan. 5, 2024, and Republican presidenti...

Associated Press

Trump, Biden won Michigan: but ‘uncommitted’ votes stick out

Early results from Michigan highlighted some of the two candidates' biggest political vulnerabilities ahead of the November general election.

2 days ago

An entrance to a Macy's store in the mall. (File photo: Ted Shaffrey, AP)...

Associated Press

Macy’s to close 150 stores as sales slip, pivot to luxury with Bloomingdale’s locations

Macy’s will close 150 unproductive namesake stores over the next three years including 50 by year-end, the department store operator said Tuesday.

2 days ago

Image: Former President Donald Trump, with lawyers Christopher Kise and Alina Habba, attends the cl...

Associated Press

Donald Trump appeals $454M judgment in New York civil fraud case

The former president is challenging that he lied about his wealth as he grew the real estate empire that launched him to stardom.

3 days ago

lily gladstone...

Jake Coyle, The Associated Press

‘Oppenheimer,’ Lily Gladstone win at 30th Screen Actors Guild Awards

Gladstone won Saturday and the crowd erupted. Stone, too, stood and vigorously applauded. Her win would be a first for Native Americans.

5 days ago

Asian stocks follow Wall St down after Fed inflation report