[ad_1]
BEIJING, Aug. 18 (AP) Asian stocks followed Wall Street lower on Thursday after the Federal Reserve said U.S. inflation was too high, signaling support for more aggressive interest rate hikes.
Shanghai, Tokyo, Hong Kong and Sydney fell. Oil prices edged higher.
Wall Street’s benchmark S&P 500 fell 0.7 percent on Wednesday, snapping a three-day winning streak after minutes of the Fed’s July 26-27 board meeting showed members believed inflation remained despite signs that U.S. growth was weakening. “Unacceptably high”. It said the board saw “little evidence” that inflationary pressures were receding.
Investors fear that sharp interest rate hikes by the Federal Reserve and European and Asian central banks to tame multi-decade high inflation could undermine global growth.
Also read | Afghanistan bombing: At least 20 dead, 40 injured in blast at mosque during night prayers in Kabul.
Mizuho’s Venkateswaran Lavagna said in a note that even if the pace of rate hikes slows, the Fed’s notes present “the prospect of further tightening,” while other investors see a possible “excessive tightening drag on” Economic Growth”.
The Shanghai Composite fell 0.5% to 3,276.62 and Tokyo’s Nikkei 225 lost 0.9% to 28,967.91. Hong Kong’s Hang Seng Index fell 0.5 percent to 19,821.28.
Seoul’s Kospi fell 0.4% to 2,507.31 and Sydney’s SP-ASX 200 lost 0.3% to 7,109.20.
New Zealand and Bangkok fell, while Singapore and Jakarta rose.
On Wall Street, the S&P 500 fell to 4,274.04. The loss erased this week’s gains, leaving the index down 0.1% since Monday.
The Dow Jones Industrial Average fell 0.5% to 33,980.32 and the Nasdaq lost 1.3% to 12,938.12.
The Commerce Department reported that retail sales were flat in July from the previous month, bucking expectations for a small increase. Retailers have warned that high inflation will discourage consumers from buying non-essential items.
Retail chain Target fell 2.7% after reporting a nearly 90% plunge in second-quarter profits. Children’s Place, a chain of children’s clothing and accessories, fell 11% after reporting an unexpected loss due to supply issues and inflationary pressures.
Technology and communications stocks also fell.
The Fed’s report on Wednesday made clear that the board plans to continue raising interest rates, but did not say when or how much.
The U.S. central bank has raised its benchmark lending rate twice this year by 0.75 percentage point, three times its usual rate. Forecasters say the Fed is likely to raise rates again by the same amount at its September meeting, although that likelihood has dwindled as data points to a weakening economy.
In energy markets, U.S. benchmark crude rose 8 cents to $88.19 a barrel in electronic trading on the New York Mercantile Exchange. It rose $1.58 to $88.11 on Wednesday. Internationally traded Brent crude oil rose 11 cents to $93.76 a barrel in London. It surged $1.31 to $93.65 in the previous session.
The dollar edged up to 135.06 yen from Wednesday’s 135.05 yen. The euro rose to $1.0183 from $1.0169. (Associated Press)
(This is an unedited and auto-generated story from the Syndicated News feed, the body of the content may not have been modified or edited by LatestLY staff)
[ad_2]
Source link