Shanghai Composite Index lost 1.3% to 3,127.78, Nikkei 225 sank 1.1% to 27,218.28, Hang Seng shed 0.7% to 19,316.58, Kospi retreated 0.4% to 2,350.27 and S&P-ASX 200 was 0.2% lower at 7,137.00
Asian stock markets fell again Monday as investors wrestled with fears the Federal Reserve and European central banks might be willing to cause a recession to crush inflation.
Shanghai, Tokyo, Hong Kong and Sydney declined. Oil prices rose by almost $1 per barrel but benchmark U.S. crude stayed below $80.
Wall Street fell Friday after the Fed raised its forecast of how long interest rates have to stay elevated to cool inflation that is near a four-decade high. The European Central Bank warned more rate hikes are coming.
That ‘hawkish rhetoric’ indicates ‘mounting pipeline risks of a global recession,’ said Tan Boon Heng of Mizuho Bank in a report.
The Shanghai Composite Index lost 1.3% to 3,127.78 despite China’s ruling Communist Party announcing Friday that it will try to reverse an economic slump by stimulating domestic consumption and the real estate market.
The Nikkei 225 in Tokyo sank 1.1% to 27,218.28 and the Hang Seng in Hong Kong shed 0.7% to 19,316.58.
The Kospi in Seoul retreated 0.4% to 2,350.27 and Sydney’s S&P-ASX 200 was 0.2% lower at 7,137.00. Singapore advanced while New Zealand and other Southeast Asian markets declined.
Wall Street’s benchmark S&P 500 index turned in its second weekly decline after losing 1.1% to 3,852.36 on Friday for its third daily drop. It is down about 19% so far this year.
The Dow Jones Industrial Average dropped 0.8% to 32,920.46. The Nasdaq composite lost 1% to 10,705.41.
More than 80% of stocks in the benchmark S&P 500 fell. Technology and health care stocks were among the biggest weights on the market. Microsoft fell 1.7% and Pfizer slid 4.1%.