Wall Street’s last week rout spilled over Monday across the world markets spewing a rash of red over Asian share markets
Asian stock markets declined Monday after Wall Street ended
last week lower and China tightened anti-virus controls.
Shanghai, Tokyo, Hong Kong and South Korea declined. Oil
prices rose more than $1 per barrel while the euro edged lower.
Wall Street's benchmark S&P 500 index ended down 1.1% on
of jobs added still was big enough that forecasters said the Federal
Reserve might see it as evidence more interest rate hikes are needed to bring
down inflation that is at a four-decade high.
Asian trading may be "muted to lower" after
Wall Street's "failed attempt" at a rebound following the jobs
report, said Yeap Jun Rong of IG in a report.
The Shanghai Composite Index lost less than 0.1% to 3,185.29
after the Chinese government tightened controls on movement in the southern
business center of Shenzhen following virus outbreaks.
Uneasy wait
The Nikkei 225 in Tokyo lost 0.1% to 27,610.75 while the
Hang Seng in Hong Kong tumbled 1.8% to 19,105.24.
The Kospi in Seoul lost 0.1% to 2,406.58 while Sydney's
S&P-ASX 200 added 0.1% to 6,837.50.
New Zealand declined while Singapore and Indonesia advanced.
Traders are uneasily watching the Fed after chair Jerome
Powell said Aug. 26 that interest rates have to stay elevated to extinguish
pressure for prices to rise. That
dashedhopes the Fed might back off due to signs U.S. economic activity is
cooling.
The Fed has raised interest rates four times this year,
twice by 0.75 percentage points, triple its usual margin.
Central banks in Europe and Asia also have raised rates,
fueling worries they might derail global economic growth.
U.S. jobs data
On Wall Street, the Dow Jones Industrial Average also fell
1.1% on Friday after the Labor Department reported the U.S. economy added
315,000 jobs in August. That was down markedly from July's 526,000, but average
hourly pay also jumped by an unusually wide margin of 5.2% compared with a year
earlier.
Forecasters warned that high wage gains might reinforce the
Fed's belief that more aggressive rate hikes are needed.
The Nasdaq composite lost 1.3%.
The U.S. market has given up much of the gains made in July
and August when traders hoped the Fed might ease up.
Traders expect another 0.75 percentage point rate hike at
this month's Fed meeting, according to CME Group.
Energy markets
Also Friday, Russian state-run energy giant Gazprom
announced a suspension of gas supply through the Nord Stream 1 pipeline to
Germany might be prolonged. The company said last Wednesday the flow of gas
would be stopped for three days due to urgent maintenance work.
In energy markets, benchmark U.S. crude gained $1.48 to
$88.35 per barrel in electronic trading on the New York Mercantile Exchange.
The contract rose 26 cents to $86.87 on Friday. Brent crude, the price basis
for international oil trading, added $1.59 to $94.61 per barrel in London. It
advanced 66 cents the previous session to $93.02.
The dollar advanced to 140.28 yen from Friday's 140.13 yen.
The euro declined to 99.18 cents from 99.64 cents.
(Joe Mcdonald is the AP Business Writer)
Text and image: AP
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