Asia Stocks Down As Wall Street Falls
Asian stocks fell in early trade on Tuesday, June 28, 2022, as investors followed a tumultuous Wall Street session overnight, while oil prices rose following last week's slump, Julie Zhu reported for Reuters.
Photo Insert: Hong Kong Exchange Square stock market building
Oil prices continued to rise as investors weighed concerns about an economic slowdown against concerns about lost Russian supplies due to sanctions related to the Ukraine conflict.
"A seam of tight supply news bolstered the (oil) market,” Commonwealth Bank of Australia analysts wrote in a research note. "Political unrest might curtail supply from a couple of second-tier producers, Ecuador and Libya. And then there's the G7's proposed price cap on Russian oil."
MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.7 percent early in the Asian trading day. This month, the index is down 3.8 percent. The S&P 500 e-minis in the United States were up 0.27 percent.
Australian equities gained 0.25 percent, while Japan's Nikkei stock index gained 0.5 percent. In early trade, China's blue-chip CSI300 index was down 0.4 percent. The Hang Seng index in Hong Kong opened 0.36 percent lower.
On Monday, US equities concluded a turbulent trading session marginally lower, with few triggers to shift investor sentiment as the equity markets approach the halfway point of a year marred by rising inflation fears and tighter Fed policies.
After bouncing earlier in the morning, the major US stock indexes lost ground, with weakening in interest rate-sensitive mega caps such as Amazon.com Inc., Microsoft Corp., and Alphabet Inc. causing the most pressure.
The Dow Jones Industrial Average (.DJI) was down 0.2 percent, the S&P 500 (.SPX) was down 0.30 percent, and the Nasdaq Composite (.IXIC) was down 0.72 percent.