Asian stocks rise after Wall Street retreats on growth concerns

BEIJING – Asian stock markets were mostly higher on Thursday after the Federal Reserve Chair said the Federal Reserve wants to avoid triggering a recession but one is possible as it hikes interest rates to cool rising inflation.

Shanghai, Tokyo and Hong Kong have made progress. Seoul refused. Oil prices fell by $2 a barrel to almost $100.

The Fed “doesn’t want to provoke a recession,” but one is possible by raising interest rates to cool inflation, which is at a four-decade high, Fed Chair Jerome Powell told members of Congress on Wednesday.

“It’s not our intended outcome, but it’s certainly a possibility,” Powell said.

Wall Street’s benchmark S&P 500 index fell 0.1% after swinging between gains of 1% and losses of 1.3% throughout the day.

“The market is now accepting that recession is a risk after completely denying it,” Rabobank’s Michael Every said in a report.

The Shanghai Composite Index rose 0.6% to 3,285.99, while Tokyo’s Nikkei 225 rose 0.2% to 26,191.97. Hong Kong’s Hang Seng rose 1% to 21,209.09.


Seoul’s Kospi declined 0.6% to 2,327.73, while Sydney’s S&P ASX 200 rose 0.4% to 6,534.10.

India’s Sensex opened up 1.1% to 10,799.50. New Zealand, Singapore and Bangkok advanced while Jakarta fell.

Last week, the Fed raised interest rates by three-quarters of a percentage point, three times their usual range and the largest hike in nearly three decades.

Investors worry that rate hikes in the US and Europe could hurt global growth, but Powell said it was “absolutely important” that the Fed restore stable prices.

“We now expect the most aggressive and synchronized tightening cycle” by global central banks since the 1980s, Capital Economics’ Jennifer McKeown said in a report. “The key question now is not whether central banks will hit the brakes, but what could stop them?”

The S&P 500 fell to 3,759.89. Stocks in the index were evenly split between winners and losers.

The Dow Jones Industrial Average fell 0.2% to 30,483.13. The Nasdaq Composite slipped 0.2% to 11,053.08.


The S&P 500 is in a bear market, or has fallen more than 20% since its Jan. 3 peak. He’s fallen in 10 of the last 11 weeks.

Fed policymakers say they expect more rate hikes this year and next, and at a faster pace than previously forecast. They say the Federal Reserve’s interest rate should reach 3.8% by the end of 2023, its highest level in 15 years.

Soaring prices have weighed on consumer sentiment in the United States, the world’s largest market. Retail spending plummets.

Inflation fears were compounded by a rise in oil, wheat and other commodity prices due to the Russian attack on Ukraine.

Oil prices fell sharply for a second day, suggesting traders are expecting weaker demand as economic activity cools.

Benchmark US crude fell $2.26 to $103.93 a barrel in electronic trading on the New York Mercantile Exchange. The contract was down $3.33 on Wednesday at $106.19. Brent crude, the price basis for international trade, fell $1.96 to $106.69 a barrel in London. In the previous session, it was down $3.12 to $108.65.


The dollar fell to 135.39 yen from 136.28 yen on Wednesday. The euro rose to $1.0570 from $1.0566.

Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, transcribed or redistributed without permission.

https://www.local10.com/business/2022/06/23/asian-stocks-higher-after-wall-st-declines-on-growth-worries/ Asian stocks rise after Wall Street retreats on growth concerns

Sarah Y. Kim

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