By The Financial District
Asian Shares Dip Ahead Of Fed Decision On Rate Hike
Asian shares mostly declined Wednesday, Sept. 21, 2022, as investors looked ahead to a widely expected interest rate hike by the U.S. Federal Reserve as it works to squash the highest inflation in decades, Yuri Kageyama reported for the Associated Press (AP).
Photo Insert: South Korea’s Kospi lost 0.9% to 2,346.62.
Japan’s benchmark Nikkei 225 dipped 1.4% in morning trading to 27,308.66. Australia’s S&P/ASX 200 dropped 1.4% to 6,712.40. South Korea’s Kospi lost 0.9% to 2,346.62. Hong Kong’s Hang Seng shed 1.4% to 18,524.48, while the Shanghai Composite slipped 0.2% to 3,115.08.
“Asian equities traded in a defensive mode on Wednesday. There were some geopolitical tensions concerning Russia and Ukraine, where the separatists are to hold a referendum in some regions, and traders were expecting an update from Putin,” said Anderson Alves at ActivTrades.
On Wall Street, the S&P 500 index fell 1.1% to 3,855.93, as more than 90% of stocks and every sector in the benchmark index lost ground. The Dow Jones Industrial Average lost 1% to 30,706.23.
The Nasdaq composite also fell 1%, to 11,425.05. The selling came as traders waited to see how high the Fed will raise interest rates at its meeting that ends Wednesday.
“The market is certainly bracing for the worst and you’re seeing a little bit of selling pressure coming in,” said Paul Kim, CEO of Simplify ETFs. Retailers, technology stocks, health care companies, and banks were among the biggest weights on the market. Best Buy fell 4.1%, Microsoft slid 0.8%, Abbott Laboratories dropped 1.7% and JPMorgan Chase closed 2% lower.
Exxon Mobil fell 0.8%. Smaller company stocks fell more than the broader market. The Russell 2000 index gave up 1.4% to 1,787.50. Bond yields mostly edged higher. The yield on the 10-year Treasury, which influences mortgage rates, rose to 3.56% from 3.52% from late Monday and is trading at its highest levels since 2011.
Global tensions are adding to uncertainties. Russian-controlled regions of eastern and southern Ukraine have announced plans to start voting this week to become integral parts of Russia. The Kremlin-backed efforts to swallow up four regions could set the stage for Moscow to escalate the war against Ukraine.
Russian President Vladimir Putin recently blasted what he described as US efforts to preserve its global domination and ordered officials to boost weapons production, Damian J. Troise and Alex Veiga also reported for AP.
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