Asian markets rise after Wall St losses amid recession fears

Jan 18, 2023, 9:49 AM | Updated: Jan 19, 2023, 8:00 pm
Currency traders watch monitors at the foreign exchange dealing room of the KEB Hana Bank headquart...

Currency traders watch monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Friday, Jan. 20, 2023. Asian stock markets rose Friday after Wall Street losses deepened as worries grow that the U.S. economy is headed for recession. (AP Photo/Ahn Young-joon)

(AP Photo/Ahn Young-joon)

BEIJING (AP) — Asian stock markets rose Friday after Wall Street losses deepened as worries grow that the U.S. economy is headed for recession.

Shanghai, Tokyo and Hong Kong advanced. Seoul declined. Oil prices gained.

Traders worry the Federal Reserve and other central banks might be willing to tip Western economies into recession as they try to extinguish inflation that is at multi-decade highs.

A Fed board member, Lael Brainard, and President Christine Lagarde of the European Central Bank in separate appearances Thursday affirmed plans to keep interest rates elevated despite market hopes central banks might scale back plans due to indications economic activity might be cooling.

“That again implies more hikes to come and then a long hiatus, not the imminent reversal markets are pricing for,” Rabobank said in a report.

The Shanghai Composite Index rose 0.6% to 3,260.04 and the Nikkei 225 in Tokyo gained less than 0.1% to 26,411.94. The Hang Seng in Hong Kong gained 0.9% to 21,844.98.

The Kospi in Seoul advanced 0.2% to 2,384.47 and Sydney’s S&P-ASX 200 was less than 0.1% higher at 7,439.50. New Zealand and Southeast Asian markets rose.

On Wall Street, the benchmark S&P 500 index lost 0.8% to 3,898.85 in its third daily decline.

More than 75% of the stocks in the S&P 500 closed lower. Technology companies, retailers and industrial stocks were among the biggest drags. Chipmaker Nvidia fell 3.5%, Home Depot dropped 4% and Deere & Co. fell 4.1%.

The Dow Jones Industrial Average retreated 0.8% to 33,044.56. The tech-heavy Nasdaq tumbled 1% to 10,852.27.

Reports showed weakness in the U.S. housing industry and manufacturing in the mid-Atlantic region, though they weren’t quite as bad as expected and the job market appears healthy. They followed worse readings than expected Wednesday on retail sales, a cornerstone of the economy, and industrial production.

The Fed and central banks in Europe and Asia raised interest rates aggressively last year to cool inflation that is multi-decade highs in some economies.

Forecasters expect a U.S. recession this year but say it likely will be brief.

The Fed’s key lending rate is 4.25% to 4.50%, up from close to zero one year ago.

Its next rate decision will be announced Feb. 1. Investors expect an increase of 0.25 percentage points next month, smaller than previous hikes of up to 0.75 percentage points.

In energy markets, benchmark U.S. crude advanced 40 cents to $81.01 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the price benchmark for international oil trading, gained 32 cents to $86.48 per barrel in London.

The dollar gained to 128.76 yen from Thursday’s 128.44 yen. The euro edged up to $1.0836 from $1.0831.

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

AP

Associated Press

Fire in Houston airport locker room delays morning flights

HOUSTON (AP) — A fire at Houston’s largest airport delayed flights on Sunday and forced passengers and employees to temporarily evacuate a terminal, officials said. No injuries were reported. Houston firefighters were called to Bush Intercontinental Airport after a fire was reported in an employee locker room in Terminal C around 5:30 a.m., according to […]
1 day ago
In this photo provided by Chad Fish, the remnants of a large balloon drift above the Atlantic Ocean...
Associated Press

Balloon bickering over Biden’s actions, China’s intentions

WASHINGTON (AP) — Republican lawmakers on Sunday accused China of deliberating surveilling sensitive U.S. military sites with a suspected spy balloon and said the Biden administration had given Beijing an intelligence opening by not downing the balloon during its high-altitude drift through American airspace. The balloon’s presence in the sky above the United States before […]
1 day ago
Director M. Night Shyamalan attends the "Knock at the Cabin" world premiere at Jazz at Lincoln Cent...
Associated Press

‘Knock at the Cabin’ knocks off ‘Avatar’ at the box office

NEW YORK (AP) — For the first time in almost two months, the box office doesn’t belong to blue people. After seven weeks as the top film in theaters, “Avatar: The Way of Water” was finally knocked out of the No. 1 spot by the M. Night Shyamalan thriller “Knock at the Cabin” and the […]
1 day ago
Pope Francis meets the journalists during an airborne press conference aboard the airplane directed...
Associated Press

Pope hits back at critics who used Pope Benedict XVI

ABOARD THE PAPAL PLANE (AP) — Pope Francis accused some of his critics Sunday of taking advantage of Pope Benedict XVI’s death to score ideological points in the latest salvo in the partisan divide of the Catholic Church. During an airborne news conference returning from South Sudan, Francis was asked about the criticism that accelerated […]
1 day ago
NASCAR Cup Series drivers Bubba Wallace (23) and Alex Bowman (48) participate in a practice session...
Associated Press

Ally Financial expands NASCAR spend with 2 new partnerships

LOS ANGELES (AP) — Ally Financial has expanded its growing portfolio as a top NASCAR sponsor with a deal to become the official bank of the stock car series and NASCAR-owned race tracks. The multiyear deal was announced Sunday ahead of NASCAR’s exhibition extravaganza at the Los Angeles Memorial Coliseum and led to the creation […]
1 day ago
Pope Francis meets the journalists during an airborne press conference aboard the airplane directed...
Associated Press

Pope planning India, Mongolia trips after Lisbon, Marseille

ABOARD THE PAPAL PLANE (AP) — Pope Francis said Sunday he is planning to visit India next year and is studying a possible trip to Mongolia later in 2023 in what would be a first for a pope. Francis outlined his upcoming travel schedule during his flight back to Rome from South Sudan. He confirmed […]
1 day ago

Sponsored Articles

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.
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.
Asian markets rise after Wall St losses amid recession fears