AP

Asian stocks after Wall St pullback on Fed inflation stance

Aug 28, 2022, 8:04 AM | Updated: Aug 29, 2022, 9:22 pm

A currency trader watches computer monitors near the screens showing the Korea Composite Stock Pric...

A currency trader watches computer monitors near the screens showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at a foreign exchange dealing room in Seoul, South Korea, Tuesday, Aug. 30, 2022. Asian stocks were mixed Tuesday after Wall Street fell following last week's Federal Reserve pledge to fight inflation by keeping interest rates elevated. (AP Photo/Lee Jin-man)

(AP Photo/Lee Jin-man)


              A currency trader watches computer monitors near the screens showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at a foreign exchange dealing room in Seoul, South Korea, Tuesday, Aug. 30, 2022. Asian stocks were mixed Tuesday after Wall Street fell following last week's Federal Reserve pledge to fight inflation by keeping interest rates elevated. (AP Photo/Lee Jin-man)
            
              A currency traders watches computer monitors at a foreign exchange dealing room in Seoul, South Korea, Tuesday, Aug. 30, 2022. Asian stocks were mixed Tuesday after Wall Street fell following last week's Federal Reserve pledge to fight inflation by keeping interest rates elevated. (AP Photo/Lee Jin-man)
            
              A currency traders walks by the screen showing the foreign exchange rate between U.S. dollar and South Korean won at a foreign exchange dealing room in Seoul, South Korea, Tuesday, Aug. 30, 2022. Asian stocks were mixed Tuesday after Wall Street fell following last week's Federal Reserve pledge to fight inflation by keeping interest rates elevated. (AP Photo/Lee Jin-man)
            
              A currency trader stands near the screens showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at a foreign exchange dealing room in Seoul, South Korea, Tuesday, Aug. 30, 2022. Asian stocks were mixed Tuesday after Wall Street fell following last week's Federal Reserve pledge to fight inflation by keeping interest rates elevated. (AP Photo/Lee Jin-man)
            
              Currency traders walk by the screens showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at a foreign exchange dealing room in Seoul, South Korea, Tuesday, Aug. 30, 2022. Asian stocks were mixed Tuesday after Wall Street fell following last week's Federal Reserve pledge to fight inflation by keeping interest rates elevated. (AP Photo/Lee Jin-man)
            
              FILE - Traders work on the floor at the New York Stock Exchange in New York, Aug. 10, 2022. Stocks are opening lower on Wall Street, continuing to add to their losses following a drop last week as traders realized how determined the Federal Reserve is to keep interest rates high to fight inflation. (AP Photo/Seth Wenig, File)
            
              FILE - Traders work on the floor at the New York Stock Exchange in New York, Aug. 10, 2022. Stocks are opening lower on Wall Street, continuing to add to their losses following a drop last week as traders realized how determined the Federal Reserve is to keep interest rates high to fight inflation. (AP Photo/Seth Wenig, File)
            
              FILE - Traders work on the floor at the New York Stock Exchange in New York, Aug. 10, 2022. Stocks are opening lower on Wall Street, continuing to add to their losses following a drop last week as traders realized how determined the Federal Reserve is to keep interest rates high to fight inflation. (AP Photo/Seth Wenig, File)
            
              FILE - Traders work on the floor at the New York Stock Exchange in New York, Aug. 10, 2022. Stocks are opening lower on Wall Street, continuing to add to their losses following a drop last week as traders realized how determined the Federal Reserve is to keep interest rates high to fight inflation. (AP Photo/Seth Wenig, File)
            
              FILE - Traders work on the floor at the New York Stock Exchange in New York, Aug. 10, 2022. Stocks are opening lower on Wall Street, continuing to add to their losses following a drop last week as traders realized how determined the Federal Reserve is to keep interest rates high to fight inflation. (AP Photo/Seth Wenig, File)
            
              FILE - Traders work on the floor at the New York Stock Exchange in New York, Aug. 10, 2022. Stocks are opening lower on Wall Street, continuing to add to their losses following a drop last week as traders realized how determined the Federal Reserve is to keep interest rates high to fight inflation. (AP Photo/Seth Wenig, File)
            
              FILE - Traders work on the floor at the New York Stock Exchange in New York, Aug. 10, 2022. Stocks are opening lower on Wall Street, continuing to add to their losses following a drop last week as traders realized how determined the Federal Reserve is to keep interest rates high to fight inflation. (AP Photo/Seth Wenig, File)
            
              FILE - A screen displays market data at the New York Stock Exchange in New York, Wednesday, Aug. 10, 2022. Stocks are holding steady in the early going on Wall Street, Friday, Aug. 26,  ahead of a widely anticipated speech by the head of the Federal Reserve that's expected to yield more clues on the central bank's outlook on the economy, inflation and interest rates.(AP Photo/Seth Wenig)
            
              FILE - A screen displays market data at the New York Stock Exchange in New York, Wednesday, Aug. 10, 2022. Stocks are holding steady in the early going on Wall Street, Friday, Aug. 26,  ahead of a widely anticipated speech by the head of the Federal Reserve that's expected to yield more clues on the central bank's outlook on the economy, inflation and interest rates.(AP Photo/Seth Wenig)
            
              FILE - A screen displays market data at the New York Stock Exchange in New York, Wednesday, Aug. 10, 2022. Stocks are holding steady in the early going on Wall Street, Friday, Aug. 26,  ahead of a widely anticipated speech by the head of the Federal Reserve that's expected to yield more clues on the central bank's outlook on the economy, inflation and interest rates.(AP Photo/Seth Wenig)
            
              A person stands in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm Monday, Aug. 29, 2022, in Tokyo. Asian shares declined Monday after the head of the U.S. Federal Reserve indicated high interest rates will continue for some time to curb inflation. (AP Photo/Eugene Hoshiko)
            
              A person wearing a protective mask walks in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm Monday, Aug. 29, 2022, in Tokyo. Asian shares declined Monday after the head of the U.S. Federal Reserve indicated high interest rates will continue for some time to curb inflation. (AP Photo/Eugene Hoshiko)
            
              A person wearing a protective mask walks in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm Monday, Aug. 29, 2022, in Tokyo. Asian shares declined Monday after the head of the U.S. Federal Reserve indicated high interest rates will continue for some time to curb inflation. (AP Photo/Eugene Hoshiko)
            
              A driver drives a truck in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm Monday, Aug. 29, 2022, in Tokyo. Asian shares declined Monday after the head of the U.S. Federal Reserve indicated high interest rates will continue for some time to curb inflation. (AP Photo/Eugene Hoshiko)
            
              People stand in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm Monday, Aug. 29, 2022, in Tokyo. Asian shares declined Monday after the head of the U.S. Federal Reserve indicated high interest rates will continue for some time to curb inflation. (AP Photo/Eugene Hoshiko)
            
              People wearing protective masks stand in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm Monday, Aug. 29, 2022, in Tokyo. Asian shares declined Monday after the head of the U.S. Federal Reserve indicated high interest rates will continue for some time to curb inflation. (AP Photo/Eugene Hoshiko)

BEIJING (AP) — Asian stocks were mixed Tuesday after Wall Street fell following last week’s Federal Reserve pledge to fight inflation by keeping interest rates elevated.

Shanghai and Hong Kong fell while Tokyo and South Korea advanced. Oil prices retreated.

Wall Street’s benchmark S&P 500 index lost 0.7% on Monday, adding to last week’s losses.

Stocks tumbled after Fed chair Jerome Powell indicated Friday the U.S. central bank will stick to a strategy of rate hikes to cool inflation that is running at multi-decade highs. That appeared to quiet speculation the Fed might ease off due to signs economic activity is cooling.

“Markets are still digesting Jay Powell’s hard-hitting message on inflation containment,” said Venkateswaran Lavanya of Mizuho Bank in a report, while the European Central Bank also is giving “more hawkish” signals.

The Shanghai Composite Index lost 0.6% to 3,220.47 and the Hang Seng in Hong Kong tumbled 1.3% to 19,762.31.

The Nikkei 225 in Tokyo gained 1% to 28,162.52 after the official unemployment rate for July held steady and the labor participation rate, or the share of the working-age population that is in jobs, stayed at a record high.

The Kospi in Seoul added 0.7% to 2,443.90 and Sydney’s S&P-ASX 200 gained 0.5% to 6,996.60.

New Zealand and Southeast Asian markets also advanced.

On Wall Street, the S&P 500 fell to 4,030.61. On Friday, the benchmark index lost 3.4% in its biggest one-day drop in two months.

The Dow Jones Industrial Average dropped 0.6% to 32,098.99. The Nasdaq composite tumbled 1% to 12,017.67.

Selling was widespread. Tech and health care stocks were the biggest decliners. Energy and utilities stocks rose.

Investors worry rate hikes by the Fed and by central banks in Europe and Asia might derail global economic growth.

Fed officials point to a strong U.S. job market as evidence the biggest global economy can tolerate higher borrowing costs. Some acknowledge a recession is possible but say that might be necessary to extinguish surging inflation.

The Fed has raised interest rates four times this year. The latest two were by 0.75 percentage points, three times its usual margin.

Some investors had hoped that the Fed would ease up if inflation subsides. That sentiment led to a rally for stocks in July and early August.

Investors expect another large hike at the Fed’s September meeting, though the likelihood of such a big increase is smaller following weaker-than-forecast July retail sales.

The Fed’s preferred gauge of inflation decelerated last month, while other data shows consumer spending slowed. Wall Street will get several more updates on the economy this week.

In energy markets, benchmark U.S. crude lost 39 cents to $96.62 per barrel in electronic trading on the New York Mercantile Exchange. The contract soared $3.95 on Monday to $97.01. Brent crude, the price basis for international trading, shed 69 cents to $102.24 per barrel in London. It jumped $4.10 the previous session to $105.09.

The dollar declined to 138.55 yen from Monday’s 138.83 yen. The euro rose to 99.99 cents from 99.92 cents.

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

AP

Image: A cargo ship is stuck under the part of the structure of the Francis Scott Key Bridge after ...

Associated Press

Authorities identify 2 bodies recovered at site of Baltimore bridge collapse

A major bridge in Baltimore snapped and collapsed after a container ship rammed into it early Tuesday, and several vehicles fell into the river below.

1 day ago

Photo: Mountaineer Jim Whittaker has died at 95....

Gene Johnson, The Associated Press

Lou Whittaker, among the most famous American mountaineers, has died at age 95

Lou Whittaker, a legendary American mountaineer who helped lead ascents of Mount Everest, K2 and Denali, has died at age 95.

1 day ago

File photo: Former Sen. Joe Lieberman speaks in Washington on Jan. 18, 2024....

Associated Press

Former Sen. Joe Lieberman, Democrats’ VP pick in 2000, dead at 82

Former U.S. Sen. Joe Lieberman of Connecticut, who nearly won the vice presidency on the Democratic ticket with Al Gore in 2000, has died.

1 day ago

islamic state attack...

Vanessa Gera, The Associated Press

What we know after the Islamic State group claims responsibility for Moscow massacre

The Islamic State group has claimed responsibility for an attack on a suburban Moscow concert hall that killed at least 133 people.

5 days ago

Moscow shooting...

The Associated Press

Russia: 60 dead, 145 injured in concert hall raid; Islamic State group claims responsibility

Assailants burst into a concert hall in Moscow on Friday and sprayed the crowd with gunfire, killing over 60 people, injuring more than 100.

7 days ago

Photo: Britain's Kate, Duchess of Cambridge visits 282 (East Ham) Squadron, RAF Air Cadets, Cornwel...

Associated Press

Kate Middleton announces she has cancer, is undergoing chemotherapy

Kate Middleton, Princess of Wales, says she is undergoing chemotherapy to treat cancer. She has been out of view since Christmas.

7 days ago

Asian stocks after Wall St pullback on Fed inflation stance