Asian shares extend losses after Wall Street decline

Dec 27, 2022, 8:53 AM | Updated: Dec 28, 2022, 8:52 pm
FILE - The New York Stock Exchange is seen in New York, Tuesday, June 14, 2022. (AP Photo/Seth Weni...

FILE - The New York Stock Exchange is seen in New York, Tuesday, June 14, 2022. (AP Photo/Seth Wenig, File)

(AP Photo/Seth Wenig, File)

              FILE - The New York Stock Exchange is seen in New York, Tuesday, June 14, 2022. (AP Photo/Seth Wenig, File)
            
              FILE - An NYSE sign is displayed at the New York Stock Exchange in New York, on Nov. 28, 2022. Stocks edged higher in morning trading on Wall Street Wednesday, Dec. 28, 2022, as investors count down to the end of the worst year for the S&P 500 since 2008. (AP Photo/Seth Wenig, File)
            
              A currency trader walks 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, Thursday, Dec. 29, 2022. Shares slipped in Asia on Thursday after benchmarks fell more than 1% on Wall Street in the middle of a mostly quiet and holiday-shortened week. (AP Photo/Lee Jin-man)
            
              A currency trader walks 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, Thursday, Dec. 29, 2022. Shares slipped in Asia on Thursday after benchmarks fell more than 1% on Wall Street in the middle of a mostly quiet and holiday-shortened week. (AP Photo/Lee Jin-man)
            
              A currency trader walks 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, Thursday, Dec. 29, 2022. Shares slipped in Asia on Thursday after benchmarks fell more than 1% on Wall Street in the middle of a mostly quiet and holiday-shortened week. (AP Photo/Lee Jin-man)
            
              Currency traders stand near the screens showing the foreign exchange rates at a foreign exchange dealing room in Seoul, South Korea, Thursday, Dec. 29, 2022. Shares slipped in Asia on Thursday after benchmarks fell more than 1% on Wall Street in the middle of a mostly quiet and holiday-shortened week. (AP Photo/Lee Jin-man)
            
              FILE - An NYSE sign is displayed at the New York Stock Exchange in New York, on Nov. 28, 2022. Stocks edged higher in morning trading on Wall Street Wednesday, Dec. 28, 2022, as investors count down to the end of the worst year for the S&P 500 since 2008. (AP Photo/Seth Wenig, File)
            
              FILE - An NYSE sign is displayed at the New York Stock Exchange in New York, on Nov. 28, 2022. Stocks edged higher in morning trading on Wall Street Wednesday, Dec. 28, 2022, as investors count down to the end of the worst year for the S&P 500 since 2008. (AP Photo/Seth Wenig, File)
            
              FILE - An NYSE sign is displayed at the New York Stock Exchange in New York, on Nov. 28, 2022. Stocks edged higher in morning trading on Wall Street Wednesday, Dec. 28, 2022, as investors count down to the end of the worst year for the S&P 500 since 2008. (AP Photo/Seth Wenig, File)
            
              FILE - An NYSE sign is displayed at the New York Stock Exchange in New York, on Nov. 28, 2022. Stocks edged higher in morning trading on Wall Street Wednesday, Dec. 28, 2022, as investors count down to the end of the worst year for the S&P 500 since 2008. (AP Photo/Seth Wenig, File)
            
              FILE - An NYSE sign is displayed at the New York Stock Exchange in New York, on Nov. 28, 2022. Stocks edged higher in morning trading on Wall Street Wednesday, Dec. 28, 2022, as investors count down to the end of the worst year for the S&P 500 since 2008. (AP Photo/Seth Wenig, File)
            
              People walk past the New York Stock Exchange on Wednesday, June 29, 2022 in New York. Stocks are opening lower across the board on Wall Street, Tuesday, July 5, and crude oil prices are dropping again. Treasury yields also fell as traders continued to worry about the state of the economy (AP Photo/Julia Nikhinson)
            
              A currency trader talks on the phone 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, Dec. 28, 2022. Shares were mixed in Asia on Wednesday after a post-holiday retreat on Wall Street, as markets count down to the end of a painful year for investors.(AP Photo/Lee Jin-man)
            
              A currency trader talks on the phone near the screens showing the Korea Composite Stock Price Index (KOSPI), center, and the foreign exchange rate between U.S. dollar and South Korean won at a foreign exchange dealing room in Seoul, South Korea, Wednesday, Dec. 28, 2022. Shares were mixed in Asia on Wednesday after a post-holiday retreat on Wall Street, as markets count down to the end of a painful year for investors.(AP Photo/Lee Jin-man)
            
              A currency trader walks by the screen showing the Korea Composite Stock Price Index (KOSPI) at a foreign exchange dealing room in Seoul, South Korea, Wednesday, Dec. 28, 2022. Shares were mixed in Asia on Wednesday after a post-holiday retreat on Wall Street, as markets count down to the end of a painful year for investors.(AP Photo/Lee Jin-man)
            
              A currency trader watches computer monitors near the screens showing the foreign exchange rate between U.S. dollar and South Korean won at a foreign exchange dealing room in Seoul, South Korea, Wednesday, Dec. 28, 2022. Shares were mixed in Asia on Wednesday after a post-holiday retreat on Wall Street, as markets count down to the end of a painful year for investors.(AP Photo/Lee Jin-man)

BANGKOK (AP) — Shares slipped in Asia on Thursday after benchmarks fell more than 1% on Wall Street in the middle of a mostly quiet and holiday-shortened week.

U.S. futures were mixed and oil prices declined.

Tokyo’s Nikkei 225 index lost 1.3% to 25,990.68.

The Hang Seng in Hong Kong shed 1.1% to 19,681.70, while the Shanghai Composite index was down 0.3% at 3,077.80.

Investors are watching to see how China’s relaxation of its stringent COVID-19 policies, and the outbreaks of infections that have followed, will affect business activity and travel.

One concern is that the massive outbreaks could generate new, potentially vaccine resistant variants of the virus, “leading to knock-on virus surges across the globe, China’s reopening could still mark a positive step over the long run in light of past global attempts in bringing virus cases under control,” Yean Jun Rong of IG said in a commentary.

Australia’s S&P/ASX 200 gave up 1.2% to 7,004.40. Bangkok’s SET index edged 0.1% higher.

The Kospi in Seoul sank 1.8% to 2,240.81 on news that South Korea’s industrial production fell minus 3.7% from a year earlier in November, worse than forecast and a bigger drop than the minus 1.2% the month before. Retail sales were down 1.8% from the month before.

The worst year since 2008 for the S&P 500 has been winding down with little in the way of data to drive trading. But later Thursday, the U.S. government was due to release jobless claims, a measure of employment that could provide insight into how the economy is faring as the Federal Reserve raises interest rates to quash inflation.

The Fed has already raised its key interest rate seven times this year and is expected to continue raising rates in 2023. The key lending rate, the federal funds rate, stands at a range of 4.25% to 4.5%, and Fed policymakers forecast that the rate will reach a range of 5% to 5.25% by the end of 2023. Their forecast doesn’t call for a rate cut before 2024.

On Wednesday, the S&P 500 fell 1.2%, with technology, energy and industrial stocks among the biggest weights on the benchmark index. It finished at 3,783.22.

The Dow Jones Industrial Average dropped 1.1% to 32,875.71. The Nasdaq slid 1.4% to 10,213.29. The Russell 2000 gave up 1.6%, ending at 1,722.02.

Bond yields were mixed. The yield on the 10-year Treasury, which influences mortgage rates, rose to 3.88% from 3.85% Tuesday. The yield on the two-year Treasury fell to 4.34% from 4.38% late Tuesday.

With two more days of trading left in 2022, the S&P 500 is headed for a roughly 20% drop for the year, even as profits and margins for companies in the index have hit record heights this year. The Dow is on pace for a 9.5% drop, while the Nasdaq is doing much worse, on pace to plunge 34.7%.

Southwest Airlines slid 5.2% as the carrier grappled with the fallout after cancelling thousands of flight cancellations. The airline’s CEO said it could be next week before the flight schedule returns to normal. Shares in other airlines also fell. Delta Air Lines dropped 2.8% and United Airlines fell 2.4%.

Tesla rose 3.3% as it stabilized from steep losses it suffered after reports Tuesday that it temporarily suspended production at a factory in Shanghai.

U.S. crude oil prices settled 0.7% lower and natural gas prices plunged 10.8%. That hurt energy stocks. Exxon Mobil fell 1.6%.

Early Thursday, U.S. benchmark crude was down 41 cents at $78.55 per barrel in electronic trading on the New York Mercantile Exchange.

Brent crude, the pricing basis for international trading, gave up 43 cents to $83.56 per barrel in London.

The U.S. dollar fell to 133.85 Japanese yen from 134.39 yen late Wednesday. The euro rose to $1.0624 from $1.0613.

___

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

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

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Asian shares extend losses after Wall Street decline