Following Wall Street's decline last week in response to the Federal Reserve's promise to battle inflation by maintaining high-interest rates, Asian stocks are mixed.
Asian equities were neutral on Tuesday after Wall Street plunged following the Federal Reserve's announcement last week that it will battle inflation by maintaining high-interest rates.
While Tokyo and South Korea advanced, Shanghai and Hong Kong declined. Oil prices dropped.
The benchmark S&P 500 index on Wall Street fell 0.7% on Monday, compounding last week's losses.
Stocks fell as Fed Chair Jerome Powell said on Friday that the American central bank will continue to raise interest rates to curb inflation, which is at multi-decade highs. This seemed to allay concerns that the Fed could loosen up as a result of indications that economic growth is weakening.
According to Venkateswaran Lavanya of Mizuho Bank, "markets are still processing Jay Powell's hard-hitting message on inflation containment," while the European Central Bank is also sending out "more hawkish" signals.
The Hang Seng in Hong Kong fell 1.3% to 19,762.31, while the Shanghai Composite Index dropped 0.6% to 3,220.47.
After the official unemployment rate for July remained unchanged and the labor participation rate, or the percentage of the working-age population that is employed, remained at a record high, the Nikkei 225 index in Tokyo increased by 1% to 28,162.52.
The S&P-ASX 200 in Sydney increased by 0.5% to 6,996.60, while the Kospi in Seoul increased by 0.7% to 2,443.90.
The markets in New Zealand and Southeast Asia also developed.
The S&P 500 on Wall Street dropped to 4,030.61. The benchmark index experienced its largest one-day decline in two months on Friday, losing 3.4%.
To 32,098.99, the Dow Jones Industrial Average decreased by 0.6%. To 12,017.67, the Nasdaq composite fell 1%.
Selling was commonplace. The two sectors that fell the most were technology and healthcare. Energy and utility stock prices increased.
Investors are concerned that rate increases from the Fed and central banks in Europe and Asia could halt global economic expansion.
Fed policymakers cite the robust job market in the United States as proof that the largest economy on the planet can withstand higher borrowing prices. Some claim that even if a recession is conceivable, it might be required to stop inflation from spiraling out of control.
This year, the Fed has increased interest rates four times. Three times its average margin, the most recent two were 0.75 percentage points apart.
Some investors had thought that if inflation declined, the Fed would loosen up. Stock prices rose in early July and late July as a result of this feeling.
Investors anticipate another significant rate increase at the Fed's September meeting, but the possibility of one this size is diminished in light of July retail sales that were worse than anticipated.
While other data indicates that consumer spending slowed last month, the Fed's favorite inflation indicator slowed down. This week, Wall Street will receive several more economic updates.
In the energy sector, the New York Mercantile Exchange's electronic trading saw benchmark U.S. crude drop 39 cents to $96.62 per barrel. On Monday, the contract increased from $3.95 to $97.01. The benchmark price for international trade, Brent crude, dropped 69 cents to $102.24 per barrel in London. The prior session saw a $4.10 increase to $105.09.
From 138.83 yen on Monday, the dollar dropped to 138.55 yen today. From 99.92 cents, the euro increased to 99.99 cents.
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