Asian stocks snake after Big-Tech fell on Wall Street | Economic news
By ELAINE KURTENBACH, AP Business Writer
Stocks were mostly down in Asia on Tuesday after a large decline on Wall Street led by tech companies.
Tokyo’s Nikkei fell 2.2% while Hong Kong’s Hang Seng recovered from its early losses.
Sino-U.S. Tensions returned to center stage after U.S. Trade Representative Katherine Tai said she plans frank conversations with officials in Beijing over an interim trade deal to resolve a war tariff.
Tai said she did not want to “ignite trade tensions with China.”
Speaking to the Center for Strategic and International Studies in Washington, DC, she also said that the United States “must defend our economic interests to the end” and take “whatever steps are necessary to protect us from the waves of damage. inflicted over the years by competition. “
Tokyo’s Nikkei 225 lost 2.2% to 27,822.12 and Seoul’s Kospi lost 1.9% to 2,962.17. The S & P / ASX 200 in Australia lost 0.4% to 7,248.40.
Hong Kong’s Hang Seng Index gained 0.5% to 24,166.74. Shanghai is closed until Friday for a public holiday.
The yield on the 10-year Treasury bill was held at 1.49%.
In addition to regional geopolitical tensions, rising bond yields and energy prices are fueling investor worries about inflation.
The price of U.S. oil hit nearly $ 78 a barrel, its highest level since 2014, as OPEC and allied oil producers stuck to a plan to cautiously increase production even as global demand for crude is increasing.
The prices of natural gas have also increased.
Rising energy costs and supply chain issues add to concerns about inflation and, in turn, concerns about the Federal Reserve’s plans to reduce bond purchases and possibly increase its benchmark interest rate.
“Assuming energy squeeze is the new normal, it’s hard to see transient inflation as transient as central bankers around the world predict / hope it will be,” Oanda’s Jeffrey Halley said in a comment.
“The effect will be felt in all global supply chains,” he said, adding that monetary policy could not fully solve the problem.
On Monday, the S&P 500 fell 1.3% to 4,300.46. The Dow Jones Industrial Average fell 0.9% to 34,002.92, and the tech-rich Nasdaq fell 2.1% to 14,255.48.
Small business shares also fell. The Russell 2000 Index lost 1.1% to 2,217.47.
Facebook slipped 4.9% per day after a former employee told “60 Minutes” that the company has always chosen its own interests over the public good. The social network and its Instagram and WhatsApp platforms also suffered a global outage that began around mid-morning US time on Monday but ended early in Asia on Tuesday.
In Tuesday’s trading in Asia, benchmark US crude rose 10 cents to $ 77.72 a barrel. Brent crude, the standard for international prices, gained 21 cents to $ 81.47 a barrel.
Wall Street will get more information on the health of the economy this week. On Tuesday, the Institute for Supply Management will release its service sector index for September. The service sector is the largest part of the economy and its health is a key factor for growth.
The Ministry of Labor will release its employment report for September on Friday. The job market is struggling to fully recover from the damage caused by COVID-19 over a year ago.
The US dollar rose from 110.93 yen to 111.19 Japanese yen. The euro slipped to $ 1.1602 from $ 1.1618.
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