Asian stock markets fall on inflation, oil price worries | Associated Press

TOKYO (AP) Asian stocks fell on Wednesday after inflation concerns raised expectations that the US Federal Reserve could raise interest rates.

Japan’s Nikkei 225 fell 1.1% to 29,436.73 in early trading after a national holiday Tuesday. The South Korean Kospi fell 0.3% to 2,988.40. The Australian S&P/ASX 200 fell nearly 0.1% to 7,403.30. Hong Kong’s Hang Seng lost 0.3% to 24,588.48, while the Shanghai Composite lost 0.4% to 3,575.93.

Markets continue to shift expectations towards tighter monetary policy from the Fed,” said Yeap Jun Rong, a market strategist at IG, adding that investors will be on the lookout for US data to be released later in the day.

The Fed will release minutes of its October policy meeting later today, potentially giving investors more details about central banks’ plan to begin curbing bond purchases that have helped keep interest rates low. .

Investors have looked to see if the pressures of rising inflation will prompt the Fed to accelerate its plans to cut bond purchases and raise benchmark rates.

Wall Street ended a shaky trading day as gains at banks and energy companies dampened losses elsewhere in the market. The S&P 500 managed to gain 0.2% to 4,690.70 after much of the day toggling between small gains and losses.

The Dow Jones Industrial Average rose 0.5% to 35,813.80, while the Nasdaq composite closed 0.5% lower at 15,775.14. Shares of small companies also lost ground. The Russell 2000 index fell 0.1% to 2,327.86.

More than 60% of shares in the S&P 500 rose. Gains in banks, energy stocks and household goods companies were dampened by losses in technology and communications stocks and a mix of companies that rely on consumer spending.

Retailers were mixed ahead of the official start of the Christmas shopping season. Discount retailer Dollar Tree rose 9.2% for biggest gain in the S&P 500. Starbucks rose 1.9%. Best Buy fell 12.3%, the biggest drop in the S&P 500, as concerns about tighter margins outweighed solid gains.

Technology and communications companies also weighed in on the broader market. Adobe fell 1.3% and Intel fell 1.5%.

Zoom Video fell 14.7% a day after the video conferencing company reported revenue growth slowed in the third quarter.

Yields on 10-year US Treasuries rose to 1.68% from 1.63% at the end of Monday, but fell to 1.65% on Wednesday afternoon in Asia.

US crude prices rose 2.3% on Tuesday and wholesale gasoline 3.4% President Joe Biden ordered the release of 50 million barrels of oil of the nation’s strategic reserve to help reduce energy costs. The move was made in consultation with other major oil-consuming countries, including Japan.

While Japan’s overall data hasn’t shown an inflation problem on the scale of other countries, critics say it’s just not as blatantly apparent, in sectors hit by rising energy prices, from companies dependent on fuel to plastic bags containing a petroleum product. to be.

Releasing the oil reserves may not necessarily push oil prices down, but analysts say it could send a message to OPEC.

In energy trading, the US benchmark rose 5 cents to $78.55 a barrel. Brent oil, the international standard, lost 21 cents to $81.12 a barrel.

Stocks are likely to see more mixed trading this week, with US markets closing for Thanksgiving on Thursday and then closing early on Friday.

Wall Street is set to receive some economic data on Wednesday that could give investors a better idea of ​​the pace and extent of the economic recovery. The Department of Labor will publish its weekly report on unemployment benefits. The Department of Commerce releases third-quarter gross domestic product data and its new home sales report for October.

In currency trading, the US dollar fell from 115.15 yen to 115.09 Japanese yen. The euro cost $1.1236, down from $1.1249.

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

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