Asia, Wall Street Stocks Down On Rate Hike Fears

Asian stock markets tumbled Monday after stronger US inflation revived worries the Federal Reserve might hike interest rates again.

Photo Insert: The Hang Seng in Hong Kong sank to 18,616.11.

Hong Kong’s main market index plunged 2.4%. Shanghai, Tokyo, and Sydney also fell. Oil prices sank.

Wall Street’s benchmark S&P 500 index slipped 0.1% on Friday after government data showed producer price inflation accelerated in July. Earlier data showed consumer prices also rose faster in July, Joe McDonald reported for the Associated Press (AP).

On Wall Street, the S&P 500 fell to 4,464.05 on Friday after the Labor Department’s producer price index rose 0.8% over a year earlier, accelerating from June’s 0.2% rate. The index fell 0.3% for the week, its second consecutive weekly decline.

The Shanghai Composite Index fell 1% to 3,156.89 and the Nikkei 225 in Tokyo shed 1.3% to 32,064.14. The Hang Seng in Hong Kong sank to 18,616.11.

The Kospi in South Korea retreated 1% to 2,565.43 and Sydney’s S&P-ASX 200 was 1% lower at 7,270.60. India’s Sensex opened down 0.5% at 64,998.39. New Zealand and Southeast Asian markets also declined.

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