Stocks Down In Asia Following Wall Street Retreat

Stocks slipped in Asia on Monday, Oct. 10, 2022, after a surprise drop in US unemployment quashed any thought of a pivot on policy tightening ahead of a reading on inflation which is expected to see core prices move higher again, Wayne Cole reported for Reuters.

Photo Insert: A US consumer prices report on Thursday will be one of the biggest factors for markets this week.

Geopolitical tensions added to the uncertainty as markets waited to see how the Kremlin might respond to the blast that hit Russia's only bridge to Crimea. Holidays in Japan and South Korea made for thin trading in Asia, while the Treasury market is also shut on Monday.

S&P 500 futures led the early action with a drop of 0.5%, while Nasdaq futures fell 0.6% as U.S. earnings season kicks off later this week.

A US consumer prices report on Thursday will be one of the biggest factors for markets this week. Investors also are awaiting the latest updates on how companies are dealing with higher prices and interest rate hikes, Elaine Kurtenbach also reported for the Associated Press.

The Hang Seng in Hong Kong fell 2.5% to 17,298.32 while the Shanghai Composite index shed 0.4% to 3,012.58. Bangkok’s SET lost 0.6% and India’s Sensex gave up 1.2%. Nikkei futures traded at 26,615 compared to Friday's cash close of 27,116.

"We are in the midst of the largest and most synchronized tightening of global monetary policy in more than three decades," said Bruce Kasman head of economic research at JPMorgan, who expects hikes of 75 basis points from all three of the central banks.

"The September CPI report should show a moderation in goods prices that is a likely harbinger of a broader slowing in core inflation," he said. "But the Fed will not be responsive to a whisper of inflation moderation as long as labor markets shout tightness."

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