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BANGKOK, Dec. 7 (AP) Asian stocks fell on Wednesday after Wall Street slumped on concerns that the Federal Reserve will need to keep the brakes on the economy to keep inflation in check, putting it at risk of a deep recession. Oil prices were mixed.
Tokyo’s Nikkei 225 fell 0.6 percent to 27,727.53 and Seoul’s Kospi dropped 0.2 percent to 2,388.95. The Shanghai Composite fell 0.4 percent to 3,199.69, while Australia’s S&P/ASX 200 fell 0.6 percent to 7,245.20.
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Hong Kong’s Hang Seng rose 0.2% to 19,469.46. Shares in Mumbai fell 0.2%, but Bangkok edged up 0.1%.
China reported that its imports and exports fell in November as weaker global demand and anti-virus controls weighed on the second-largest economy.
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Customs data showed exports fell 9% from a year earlier, worse than a 0.9% drop in October. Imports fell 10.9%, slower than the previous month’s 0.7% decline.
Global demand cooled after the Federal Reserve and European and Asian central banks raised interest rates to curb soaring inflation, and China trade had been expected to weaken.
On Tuesday, the S&P 500 fell 1.4%, its fourth straight drop, to 3,941.26, while the tech-heavy Nasdaq fell 2% to 11,014.89.
The Dow Jones Industrial Average fell 1 percent to 33,596.34, while the Russell 2000 lost 1.5 percent to 1,812.58.
Technology stocks, telecommunications companies and retailers suffered the most. Apple fell 2.5 percent, Disney fell 3.8 percent and AutoZone fell 2.8 percent.
Shares of smaller companies also fell, pulling the Russell 2000 down 1.5 percent. The major indexes were on track for weekly losses after two straight weeks of gains.
Bond yields fell. The yield on the 10-year U.S. Treasury note slipped to 3.52% from 3.58% late on Monday.
Several companies made big moves following financial updates and acquisition announcements.
Shares of utility NRG Energy fell 15.1 percent after announcing it would spend $2.8 billion in cash and assume $2.4 billion in debt to acquire Vivint Smart Home.
Jewelry company Signet surged 20.2 percent after it raised its profit and revenue forecast for the year.
The broader market fell a day after stocks retreated as stronger-than-expected economic data raised concerns about the Fed’s ability to rein in inflation. The Fed is doing this by deliberately slowing the economy with higher interest rates.
Investors are closely watching economic data and company announcements to better understand how the economy is coping with stubborn inflation.
They are also trying to determine whether inflation is slowing at a rate that would allow the Fed to ease off rate hikes. Fed policy could put too much brakes on the economy and push it into recession.
The Federal Reserve meets next week and is expected to raise interest rates by 0.5 basis points.
It has raised its benchmark interest rate six times since March, bringing it to a range of 3.75% to 4%, the highest level in 15 years. Wall Street expects the benchmark rate to peak in a range of 5% to 5.25% in mid-2023.
Wall Street will get its weekly update on jobless claims on Thursday. The job market has been one of the strongest areas of the economy.
On Friday, the government is to release its producer price report for November. This will give investors greater insight into how inflation affects businesses.
The University of Michigan will release its consumer sentiment survey for December on Friday.
In other trading on Wednesday, U.S. benchmark crude rose 1 cent to $74.26 a barrel in electronic trading on the New York Mercantile Exchange.
Brent crude, the internationally priced benchmark, rose 15 cents to $79.50 a barrel.
The dollar rose to 137.23 yen from 136.94 yen. The euro fell to $1.0465 from $1.0468. (Associated Press)
(This is an unedited and auto-generated story from a Syndicated News feed, the content body may not have been modified or edited by LatestLY staff)
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