Asian stocks mixed after Wall Street sinks for third day - Albuquerque Journal

Asian stocks mixed after Wall Street sinks for third day

BEIJING — Asian stock markets were mixed Friday as traders looked ahead to data on U.S. employment costs that might influence Federal Reserve decisions on planned interest rate hikes.

Tokyo and Seoul advanced while Shanghai and Hong Kong declined.

Wall Street fell for a third day Thursday after the U.S. government reported the economy grew by 5.7% last year, its strongest annual rate since 1984.

Investors looked ahead to U.S. data on employment costs for indications of when and by how much the Fed might raise interest rates to cool surging inflation. Investors expect at least four rate hikes this year after Fed officials said stimulus that is boosting stock prices would be wound down sooner than previously planned.

The Employment Cost Index is expected to show the price of labor rose by about 1.2% over the previous quarter in the final three months of 2021.

“Another strong wage gain could amplify market expectations” of an unusually large rate hike of 0.5 percentage points as early as March, Anderson Alves of ActivTrades said in a report.

The Shanghai Composite Index lost 0.7% to 3,372.26 and the Hang Seng in Hong Kong sank 1% to 23.564.09.

The Nikkei 225 in Tokyo surged 2.1% to 26,720.06, recovering most of its losses from the previous day’s 2.5% slide.

The Kospi in Seoul rose 1.4% to 2,650.11 while Sydney’s S&P-ASX 200 advanced 2% to 6,977.20.

New Zealand declined 1% while Southeast Asian markets rose.

On Wall Street, the benchmark S&P 500 index fell 0.5% to 4,326.51 after official data showed the U.S. economy grew 5.7% last year, its strongest rate since 1984’s 7.2% jump.

The index is within 10 points of entering a correction, meaning a drop of 10% from its Jan. 3 all-time high.

The Dow Jones Industrial Average slipped less than 0.1% to 34,160.78. The Nasdaq composite dropped 1.4% to 13,352.78.

Stocks have been on a roller coaster ride this week as investors try to figure out what the Fed will do after Powell said inflation pressures aren’t easing.

“The Fed got inflation wrong and the scramble to deliver interest rate hikes this year is sending the best performing assets during the pandemic tumbling,” said Edward Moya of Oanda in a report.

Companies that rely on consumer spending and banks sank. Royal Caribbean fell 6.3% and JPMorgan Chase slid 1.8%.

Technology stocks lost ground. Pricey tech companies and other growth stocks are less attractive when rates rise. Nvidia fell 3.6%.

In energy markets, benchmark U.S. crude rose 61 cents to $87.22 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 74 cents on Thursday to $86.61. Brent crude, the price basis for international oils, advanced 40 cents to $88.57 per barrel in London.

The dollar gained to 115.40 yen from Thursday’s 115.31 yen. The euro advanced to $1.1158 from $1.1142.

Home » News » Nation » Asian stocks mixed after Wall Street sinks for third day


Albuquerque Journal and its reporters are committed to telling the stories of our community.

• Do you have a question you want someone to try to answer for you? Do you have a bright spot you want to share?
   We want to hear from you. Please email yourstory@abqjournal.com

taboola desktop

1
Fire threatened priceless seeds saved for West's post-fire forests
ABQnews Seeker
Researchers moved fast to relocate millions ... Researchers moved fast to relocate millions of samples from Mora facility
2
Order aims to lighten teachers' administrative burden
ABQnews Seeker
Gov. Lujan Grisham calls for a ... Gov. Lujan Grisham calls for a 25% reduction in the administrative tasks
3
PNM, advocacy groups differ on bond sale
From the newspaper
Issuance timing would affect consumer rate ... Issuance timing would affect consumer rate reductions
4
Garcia Holmes, Sanchez seek to turn ABQ-based district red
2022 election
Inflation, high crime top issues for ... Inflation, high crime top issues for GOP hopefuls
5
PNM sued over deadly Ruidoso-area blaze
ABQnews Seeker
Suit: Powerlines poorly maintained Suit: Powerlines poorly maintained
6
Lujan Grisham: Feds liable for wildfire damage
ABQnews Seeker
Governor says it's 'problematic' emergency ... Governor says it's 'problematic' emergency aid isn't designed to fully cover losses
7
Viewers to experience 'natural high' of flying
ABQnews Seeker
“Over New Mexico and the Southwest,” ... “Over New Mexico and the Southwest,” will be screened at 6:30 and 7:30 p.m. Thursday at the Natural History Museum
8
County assessor candidates have experience with office
2022 election
Stephen A. Sais and Damian R. ... Stephen A. Sais and Damian R. Lara are vying to fill the seat being vacated by Tanya Giddings, who cannot run again because of ...
9
District judge candidate acknowledges 2018 tax lien
2022 election
Journal alerted by opponent's campaign manager Journal alerted by opponent's campaign manager
10
Mistrial declared in 1997 homicide case
ABQnews Seeker
jurors failed to reach a unanimous ... jurors failed to reach a unanimous verdict in the case against the man accused of killin