Asia Stocks End Lower, Track Wall Street Retreat
Asian stock markets followed Wall Street lower on Thursday after the Federal Reserve delivered another big interest rate hike to cool galloping inflation and raised its outlook for more.
Photo Insert: Philippine President Bongbong Marcos was recently a guest of the New York Stock Exchange.
Shanghai, Tokyo, Hong Kong and Sydney declined. Oil prices gained, Joe McDonald reported for the Associated Press (AP).
Wall Street’s benchmark S&P 500 index fell 1.7% on Wednesday to its lowest level in two months after the Fed raised its benchmark lending rate by 0.75 percentage points, three times its usual margin.
The Fed said it expects that rate to be a full percentage point higher by the end of the year than it did three months ago. In energy markets, benchmark U.S. crude gained 19 cents to $83.13 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell $1 to $82.94 on Wednesday.
Brent crude, the price basis for international oil trading, advanced 26 cents to $90.09 in London. It lost 79 cents the previous session to $89.83. The dollar gained to 144.50 yen from Wednesday’s 143.46 yen. The euro fell to 98.15 cents from 99.09 cents.
The Shanghai Composite Index lost less than 0.1% to 3,115.94 and the Nikkei 225 in Tokyo slid 0.9% to 27,060.89. Hong Kong’s Hang Seng tumbled 1.9% to 18,094.62. The Kospi in Seoul sank 1.4% to 2,315.24. New Zealand edged up 0.1% while Southeast Asian markets declined.
The S&P 500 fell to 3,789.93. The Dow fell 1.7% to 30,183.78, and the Nasdaq composite lost 1.8% to 11,220.19. The major Wall Street indices are on pace for their fifth weekly loss in six weeks.
The yield on the 2-year Treasury, or the difference between the market price and the payout if held to maturity, rose to 4.02% from 3.97% late Tuesday. It was trading at its highest level since 2007.
The yield on the 10-year Treasury, which influences mortgage rates, fell to 3.52% from 3.56% late Tuesday.