BEIJING (`) – Asian stock markets were mixed on Thursday after major central bank governors said they needed to keep interest rates high to combat persistent inflation, despite fears the global economy could slide into recession.
Shanghai, Hong Kong and Seoul retreated while Tokyo and Sydney advanced. Oil prices fell.
At a meeting in Portugal on Wednesday, central bankers from the US, Europe and Japan said they are yet to ease upward pressure on prices amid continued strong hiring figures. “Policies haven’t been tight enough for long enough,” said Federal Reserve Chair Jerome Powell.
“The end of the rate hikes is not yet in sight,” Carl B. Weinberg of High-Frequency Economics said in a report.
The Shanghai Composite Index slipped 0.1% to 3,185.83, while Tokyo’s Nikkei 225 gained 0.4% to 33,308.65. Hong Kong’s Hang Seng fell 1.4% to 18,906.91.
The Kospi in Seoul fell 0.2% to 2,558.98, while the S&P-ASX 200 in Sydney was up less than 0.1% to 7,197.60.
New Zealand and Bangkok advanced. Markets in India and Singapore were closed for public holidays.
On Wall Street, the benchmark S&P 500 fell less than 0.1% to 4,376.86.
The Dow Jones Industrial Average fell 0.2% to 33,852.66. The Nasdaq Composite was up 0.3% to 13,591.75.
General Mills fell 5.2% after the maker of Cheerios and Haagen-Dazs reported weaker sales than analysts had expected for the most recent quarter.
Other food companies also declined, including declines of 4% at Hershey, 3.7% at JM Smucker and 3.5% at Conagra Brands.
AeroVironment, a maker of unmanned aerial vehicles, tactical missile systems and other equipment used by the US military and in Ukraine, rose 4.9% after the company reported higher-than-expected profits and sales.
Investors are expecting at least a brief recession this year after the Fed and central banks in Europe and Asia hiked rates. But hiring and consumer spending remained stronger-than-expected, leading to concerns that a recession might be avoided.
The Fed has announced that it will raise rates one or two more times this year, while the European Central Bank and others have been even more aggressive.
The story goes on
Strong reports on US consumer confidence, new home sales and other sectors of the economy on Tuesday helped the S&P 500 rise 1.1%. This month, the S&P 500 hit its highest level since April 2022.
In energy markets, benchmark U.S. crude fell 35 cents to $69.21 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.86 to $69.56 on Wednesday. Brent crude, the price basis for international oil trading, fell 42 cents to $73.82 a barrel in London. In the previous session, the price rose $1.77 to $74.03.
The dollar rose to 144.57 yen from 144.32 yen on Wednesday. The euro fell to $1.0886 from $1.0922.
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