Asian shares decline on Wall Street losses, rate worries

Sep 5, 2022, 1:54 PM | Updated: Sep 6, 2022, 9:04 pm
A person wearing a protective mask walks past an electronic stock board showing Japan's Nikkei 225 ...

A person wearing a protective mask walks past an electronic stock board showing Japan's Nikkei 225 index at a securities firm Wednesday, Sept. 7, 2022, in Tokyo. Asian shares were mostly lower Wednesday, as pessimism prevailed about higher interest rates ahead and Wall Street shares fell for the fourth straight week. Oil prices fell, while the Japanese yen continued to decline against the U.S. dollar to nearly 144 yen. (AP Photo/Eugene Hoshiko)

(AP Photo/Eugene Hoshiko)

TOKYO (AP) — Asian shares were mostly lower Wednesday, as pessimism prevailed about higher interest rates ahead and Wall Street shares fell for the fourth straight week.

Shares fell in early trading in Tokyo, Sydney, South Korea and Hong Kong, but were little changed in Shanghai. Oil prices fell, while the Japanese yen continued to decline against the U.S. dollar to nearly 144 yen.

“The mood in markets is defensive ahead of key central bank decisions,” said Anderson Alves at ActivTrades.

Rising energy prices are adding to the worries about recessions in some parts of the world, he said.

In Japan, the government is giving 50,000 yen ($350) to needy families, to help cope with daily needs and energy prices in a move also designed to boost the lagging economy.

“The real solution to this inflation crisis obviously lies on the supply side, in terms of energy and other key goods. Yet that really takes us a step away from inflation-targeting and back towards an echo of how macro-stability was previously achieved,” according to RaboResearch.

Japan’s benchmark Nikkei 225 shed nearly 1.0% in morning trading to 27,362.83. Australia’s S&P/ASX 200 dropped 1.3% to 6,735.80. South Korea’s Kospi slid 1.5% to 2,373.14. Hong Kong’s Hang Seng dipped 1.7% to 18,884.75, while the Shanghai Composite was little changed at 3,243.55.

Shares fell on Wall Street coming into a holiday-shortened week. The S&P 500 fell 0.4% after bouncing between a gain of 0.5% and a loss of 1%. The Dow Jones Industrial Average fell 0.6% and the Nasdaq lost 0.7%.

The major indexes are coming off their third losing week in a row, part of a late-summer slump that erased much of the benchmark S&P 500’s gains from July and early August.

Stocks have been losing ground as the Federal Reserve has indicated it will not let up anytime soon on raising interest rates to bring down the highest inflation in decades.

In addition, Wall Street is grappling with worries about a brewing energy crisis in Europe and the implications it could have for the global economy and corporate profits, given that companies in the S&P 500 get half their revenue from abroad, said Michael Antonelli, market strategist at Baird.

“Each day that goes by that we have to talk about an energy crisis or a gas shortage or out of control electrical bills in Europe, the less the market can make constructive headway,” he said.

The S&P 500 fell 16.07 points to 3,908.19. The Dow slid 173.14 points to 31,145.30, while the Nasdaq fell 85.96 points to 11,544.91. Smaller company stocks fell more than the broader market. The Russell 2000 index fell 17.42 points, or 1%, to 1,792.32.

Technology and communications stocks were among the biggest losers.

Bed Bath & Beyond fell 18.4% following the death of its chief financial officer. The company has been suffering from a prolonged sales slump and executive turnover.

The company that wants to take Trump Media public, Digital World Acquisition, plunged 11.4% following reports it didn’t receive enough shareholder support for an extension to close the deal.

Markets have been slipping in recent weeks as inflation remains hot and the Federal Reserve stays on track to continue raising interest rates to try and tame stubbornly persistent high prices.

“There’s a fairly consensus view now that the Fed is going to be higher for longer and err on the side of inflation reduction over employment and growth,” said Mark Hackett, chief of investment research at Nationwide.

Bond yields rose. The yield on the 10-year Treasury, which influences interest rates on mortgages and other loans, rose to 3.34% from 3.19% late Thursday. The two-year Treasury yield, which tends to track expectations for Fed action, rose to 3.51% from 3.39%.

In energy trading, benchmark U.S. crude fell $1.52 to $85.36 a barrel. Brent crude, the international standard, fell $1.34 to $91.49 a barrel.

In currency trading, the U.S. dollar rose to 143.98 Japanese yen from 142.76 yen. The euro was little changed at 99 cents.


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

Yuri Kageyama is on Twitter

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


Associated Press

Much of drought-plagued West Coast faces salmon fishing ban

The surreal and desperate scramble boosted the survival rate of the hatchery-raised fish, but still it was not enough to reverse the declining stocks in the face of added challenges.
15 hours ago
UCLA's Jaime Jaquez Jr. (24) shoots while defended by Gonzaga's Rasir Bolton (45) in the first half...
Associated Press

Gonzaga beats UCLA 79-76 in Sweet 16 on Strawther’s shot

Julian Strawther hit a 3-pointer with 6 seconds left to answer a 3-pointer by UCLA's Amari Bailey, lifting Gonzaga to a wild 79-76 NCAA Tournament win over UCLA Thursday night in the Sweet 16.
15 hours ago
Associated Press

Officials: Safety device, human error derailed Wash. train

A safety device failed, knocking a train off the tracks last week, spilling diesel after leaving an oil refinery in Anacortes.
15 hours ago
File - Credit cards as seen July 1, 2021, in Orlando, Fla. A low credit score can hurt your ability...
Associated Press

What the Fed rate increase means for your credit card bill

The Federal Reserve raised its key rate by another quarter point Wednesday, bringing it to the highest level in 15 years as part of an ongoing effort to ease inflation by making borrowing more expensive.
2 days ago
police lights distracted drivers shooting...
Associated Press

Authorities: Missing mom, daughter in Washington found dead

A missing Washington state woman and her daughter were found dead Wednesday, according to police.
2 days ago
Associated Press

Google’s artificially intelligent ‘Bard’ set for next stage

Google announced Tuesday it's allowing more people to interact with “ Bard,” the artificially intelligent chatbot the company is building to counter Microsoft's early lead in a pivotal battleground of technology.
3 days ago

Sponsored Articles

Emergency Preparedness...

Prepare for the next disaster at the Emergency Preparedness Conference

Being prepared before the next emergency arrives is key to preserving businesses and organizations of many kinds.
SHIBA volunteer...

Volunteer to help people understand their Medicare options!

If you’re retired or getting ready to retire and looking for new ways to stay active, becoming a SHIBA volunteer could be for you!
safety from crime...

As crime increases, our safety measures must too

It's easy to be accused of fearmongering regarding crime, but Seattle residents might have good reason to be concerned for their safety.
Comcast Ready for Business Fund...
Ilona Lohrey | President and CEO, GSBA

GSBA is closing the disparity gap with Ready for Business Fund

GSBA, Comcast, and other partners are working to address disparities in access to financial resources with the Ready for Business fund.

Medicare open enrollment is here and SHIBA can help!

The SHIBA program – part of the Office of the Insurance Commissioner – is ready to help with your Medicare open enrollment decisions.
Lake Washington Windows...

Choosing Best Windows for Your Home

Lake Washington Windows and Doors is a local window dealer offering the exclusive Leak Armor installation.
Asian shares decline on Wall Street losses, rate worries