Asian stocks follow Wall St down before US inflation update

Nov 8, 2022, 9:10 AM | Updated: Nov 9, 2022, 8:10 pm
Currency traders work at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seo...

Currency traders work at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, Nov. 10, 2022. Asian stock markets followed Wall Street lower on Thursday ahead of a U.S. inflation update that will likely influence Federal Reserve plans for more interest rate hikes after elections left control of Congress uncertain.(AP Photo/Ahn Young-joon)

(AP Photo/Ahn Young-joon)

              Currency traders work at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, Nov. 10, 2022. Asian stock markets followed Wall Street lower on Thursday ahead of a U.S. inflation update that will likely influence Federal Reserve plans for more interest rate hikes after elections left control of Congress uncertain.(AP Photo/Ahn Young-joon)
            
              A currency trader stretches at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, Nov. 10, 2022. Asian stock markets followed Wall Street lower on Thursday ahead of a U.S. inflation update that will likely influence Federal Reserve plans for more interest rate hikes after elections left control of Congress uncertain.(AP Photo/Ahn Young-joon)
            
              Currency traders watch monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, Nov. 10, 2022. Asian stock markets followed Wall Street lower on Thursday ahead of a U.S. inflation update that will likely influence Federal Reserve plans for more interest rate hikes after elections left control of Congress uncertain.(AP Photo/Ahn Young-joon)
            
              A currency trader walks by screens showing the Korea Composite Stock Price Index (KOSPI), left, and the exchange rate of South Korean won against the U.S. dollar, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, Nov. 10, 2022. Asian stock markets followed Wall Street lower on Thursday ahead of a U.S. inflation update that will likely influence Federal Reserve plans for more interest rate hikes after elections left control of Congress uncertain.(AP Photo/Ahn Young-joon)
            
              FILE - The New York Stock Exchange on Wednesday, June 29, 2022 in New York. (AP Photo/Julia Nikhinson, File)
            
              FILE - The New York Stock Exchange on Wednesday, June 29, 2022 in New York. (AP Photo/Julia Nikhinson, File)
            
              FILE - The New York Stock Exchange on Wednesday, June 29, 2022 in New York. (AP Photo/Julia Nikhinson, File)
            
              FILE - The New York Stock Exchange on Wednesday, June 29, 2022 in New York. (AP Photo/Julia Nikhinson, File)
            
              FILE - The New York Stock Exchange on Wednesday, June 29, 2022 in New York. (AP Photo/Julia Nikhinson, File)
            
              FILE - The New York Stock Exchange on Wednesday, June 29, 2022 in New York. (AP Photo/Julia Nikhinson, File)
            
              FILE - The New York Stock Exchange on Wednesday, June 29, 2022 in New York. (AP Photo/Julia Nikhinson, File)
            
              FILE - The New York Stock Exchange on Wednesday, June 29, 2022 in New York. (AP Photo/Julia Nikhinson, File)
            
              FILE - The New York Stock Exchange on Wednesday, June 29, 2022 in New York. (AP Photo/Julia Nikhinson, File)
            
              Currency traders watch 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, Wednesday, Nov. 9, 2022. Asian shares were mixed on Wednesday as investors awaited the outcome of the U.S. midterm elections and a major inflation update due later in the week. (AP Photo/Lee Jin-man)
            
              A currency trader walks near the screens at a foreign exchange dealing room in Seoul, South Korea, Wednesday, Nov. 9, 2022. Asian shares were mixed on Wednesday as investors awaited the outcome of the U.S. midterm elections and a major inflation update due later in the week. (AP Photo/Lee Jin-man)
            
              A currency trader walks near the screens showing foreign exchange rates at a foreign exchange dealing room in Seoul, South Korea, Wednesday, Nov. 9, 2022. Asian shares were mixed on Wednesday as investors awaited the outcome of the U.S. midterm elections and a major inflation update due later in the week. (AP Photo/Lee Jin-man)
            
              A currency trader walks near 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, Wednesday, Nov. 9, 2022. Asian shares were mixed on Wednesday as investors awaited the outcome of the U.S. midterm elections and a major inflation update due later in the week. (AP Photo/Lee Jin-man)

BEIJING (AP) — Asian stock markets followed Wall Street lower on Thursday ahead of a U.S. inflation update that will likely influence Federal Reserve plans for more interest rate hikes after elections left control of Congress uncertain.

Hong Kong’s market benchmark fell by more than 2%. Shanghai, Tokyo and Sydney also declined. Oil prices edged lower.

Wall Street’s benchmark S&P 500 index lost 2.1% as investors watched vote-counting from Tuesday’s congressional elections to see whether Republicans take control, possibly leading to changes that can unsettle markets. Investors were rattled by the crypto industry’s latest crisis of confidence and weaker profit reports from The Walt Disney Co. and some other companies.

Forecasters expect U.S. government data Thursday to show surging inflation eased in September but stayed near a four-decade high. That might reinforce arguments by some Fed officials that rates have to stay high for an extended period to slow economic activity and extinguish inflation.

“There are upside risks” of higher inflation than expected, said Michael Every of Rabobank in a report. “If so, expect more market pain.”

Investors worry rate hikes this year by the Fed and central banks in Europe and Asia to cool inflation might tip the global economy into recession.

The Hang Seng index in Hong Kong tumbled 2.3% to 15,980.61 and the Nikkei 225 in Tokyo shed 1.2% to 27,391.00. The Shanghai Composite Index gave up 0.5% to 3,034.21.

The Kospi in Seoul declined 0.5% to 2,412.93 and Sydney’s S&P-ASX 200 sank 0.4% to 6,971.90. New Zealand and Jakarta gained while Singapore and Malaysia declined.

On Wall Street, the S&P 500 declined to 3,748.57, erasing most of its gains from a three-day rally leading up to Election Day.

Disney sank 13.2% for the largest loss in the S&P 500 after reporting quarterly results that fell short of analysts’ expectations.

Facebook parent Meta Platforms rose 5.2% after saying it will cut costs by laying off 11,000 employees, or about 13% of its workforce. It is down nearly 70% for the year.

The Dow Jones Industrial Average fell 2% to 32,513.94. The Nasdaq composite tumbled 2.5% to 10,353.17.

Republicans were within nine seats of the 218 needed to control the House of Representatives as votes still were being counted in some states. Control of the Senate depended on races in Nevada and Arizona that hadn’t been decided.

The outcome will determine how the next two years of President Joe Biden’s term play out. Republicans are likely to launch a spate of investigations into Biden, his family and his administration if they take power. A GOP takeover of the Senate would hobble the president’s ability to appoint judges.

Also Wednesday, cryptocurrencies fell amid worries about the industry’s financial strength after a big player, Binance, called off a deal to buy troubled rival FTX. That at least temporarily ended hopes for a bailout after FTX users scrambled to pull out their money.

Bitcoin fell 14% from a day earlier to $15,900. That is down 77% from last year’s high of $69,000.

Traders hope indicators that show U.S. housing sales and other activity weakening might prompt the Fed to back off plans for more rate hikes. Fed officials have said rates likely will be kept elevated for an extended period until inflation is extinguished.

Forecasters expect Thursday’s data to show inflation decelerated to 7.9% in September from the previous month’s 8.3%. However, prices were expected to rise 0.6% compared with August, accelerating from July’s 0.1% increase.

Core inflation, which strips out volatile food and energy prices to show a clearer trend, is expected to accelerate to 6.5% from August’s 6.3%. That suggests costs of rent, medical services, autos and other goods and services still are rising in response to strong demand.

Traders expect the Fed to raise rates again next month but by a smaller margin of one-half percentage point after a series of 0.75 percentage-point increases. The Fed’s key lending rate is a range of 3.75% to 4%, up from close to zero in March. A growing number of investors expect it to exceed 5% next year.

The yield on the 10-year Treasury, which helps dictate rates for mortgages and other loans, fell to 4.08% from 4.13% late Tuesday. The two-year yield, which tends to more closely track expectations for Fed action, dropped to 4.60% from 4.66%.

In energy markets, benchmark U.S. crude shed 8 cents to $85.75 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the price basis for international oil trading, lost 3 cents to $92.62 per barrel in London.

The dollar gained to 146.16 yen from Wednesday’s 145.56 yen. The euro declined to $1.0024 from $1.0073.

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

AP

FILE - In this Oct. 10, 2018, file photo Amazon Prime boxes are loaded on a cart for delivery in Ne...
Haleluya Hadero, Associated Press

Amazon says it had its biggest Thanksgiving shopping weekend

Amazon said Wednesday it had its biggest ever Thanksgiving holiday shopping weekend, aided by a record number of consumers looking for deals online amid high inflation.
14 hours ago
A sign at Twitter headquarters is shown in San Francisco, Friday, Nov. 18, 2022. (AP Photo/Jeff Chi...
David Klepper, Associated Press

Twitter ends enforcement of COVID misinformation policy

Twitter will no longer enforce its policy against COVID-19 misinformation, raising concerns among public health experts and social media researchers that the change could have serious consequences if it discourages vaccination and other efforts to combat the still-spreading virus. Eagle-eyed users spotted the change Monday night, noting that a one-sentence update had been made to […]
14 hours ago
Associated Press

Defense rests, closings next at Harvey Weinstein rape trial

LOS ANGELES (AP) — Harvey Weinstein’s defense team has rested its case and closing arguments will begin later Wednesday at the Los Angeles rape trial of the former movie magnate. Weinstein’s lawyers called six witness as they sought to cast doubt on the accounts of the women who have accused Weinstein of raping or sexually […]
2 days ago
Associated Press

Biogen, Wayfair rise; CrowdStrike, NetApp fall

NEW YORK (AP) — Stocks that traded heavily or had substantial price changes Wednesday: Intuit Inc., up $27.88 to $407.59. The maker of TurboTax, QuickBooks and other accounting software beat analysts’ fiscal first-quarter revenue and earnings. Biogen Inc., up $13.76 to $305.17. Investors received an encouraging update on a potential Alzheimer’s drug being developed by […]
2 days ago
Associated Press

How major US stock indexes fared Wednesday 11/30/2022

Stocks rallied on Wall Street after the head of the Federal Reserve said the central bank could soon ease up on its aggressive pace of interest rate hikes aimed at taming inflation. While citing some signs that inflation is cooling, Fed Chair Jerome Powell stressed Wednesday that the Fed will push rates higher than previously […]
2 days ago
Associated Press

Ohio court rejects city cable fees for streaming services

COLUMBUS, Ohio (AP) — The streaming services Netflix and Hulu are not video service providers that would have to pay local governments in Ohio the same fees levied on cable operators, the state Supreme Court ruled Wednesday in a case similar to lawsuits filed by hundreds of other municipalities nationally. At issue in Ohio is […]
2 days ago

Sponsored Articles

SHIBA WA...

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.
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.
Asian stocks follow Wall St down before US inflation update