BEIJING (AP) — Asian stock markets fell again Monday as investors wrestled with fears the Federal Reserve and European central banks could be willing to cause a recession to crush inflation.
Shanghai, Tokyo, Hong Kong and Sydney declined. Oil prices rose by almost $1 per barrel but benchmark U.S. crude stayed below $80.
Wall Street fell Friday after the Fed raised its forecast of how long rates of interest should stay elevated to chill inflation that’s near a four-decade high. The European Central Bank warned more rate hikes are coming.
That “hawkish rhetoric” indicates “mounting pipeline risks of a world recession,” said Tan Boon Heng of Mizuho Bank in a report.
The Shanghai Composite Index lost 1.3% to three,127.78 despite China’s ruling Communist Party announcing Friday that it should attempt to reverse an economic slump by stimulating domestic consumption and the true estate market.
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The Nikkei 225 in Tokyo sank 1.1% to 27,218.28 and the Hang Seng in Hong Kong shed 0.7% to 19,316.58.
The Kospi in Seoul retreated 0.4% to 2,350.27 and Sydney’s S&P-ASX 200 was 0.2% lower at 7,137.00. Singapore advanced while Recent Zealand and other Southeast Asian markets declined.
Wall Street’s benchmark S&P 500 index turned in its second weekly decline after losing 1.1% to three,852.36 on Friday for its third each day drop. It’s down about 19% up to now this 12 months.
The Dow Jones Industrial Average dropped 0.8% to 32,920.46. The Nasdaq composite lost 1% to 10,705.41.
Greater than 80% of stocks within the benchmark S&P 500 fell. Technology and health care stocks were amongst the most important weights in the marketplace. Microsoft fell 1.7% and Pfizer slid 4.1%.
U.S. inflation has eased to 7.1% over a 12 months earlier in November from June’s 9.1% high but still is painfully high.
The Ate up Wednesday raised its benchmark short-term lending rate by one-half percentage point for its seventh hike this 12 months. That dashed hopes the U.S. central bank might ease off increases as a consequence of signs inflation and economic activity are cooling.
The federal funds rate stands at a 15-year high of 4.25% to 4.5%. The Fed forecast that may reach a variety of 5% to five.25% by the top of 2023. Its forecast doesn’t call for a rate cut before 2024.
In energy markets, U.S. benchmark crude rose 94 cents to $75.23 per barrel in electronic trading on the Recent York Mercantile Exchange. The contract fell $1.82 on Friday to $74.29. Brent crude, the worth basis for international oil trading, gained $1.01 to $80.05 per barrel in London. It lost $2.17 the previous session to $79.04.
The dollar declined to 136.25 yen from Friday’s 136.56 yen. The euro gained to $1.0609 from $1.0600.
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