Stock market today: Asian markets fall after data fades hopes of an imminent US interest rate cut | Stock market

BEIJING (`) — Asian markets fell Friday, with Hong Kong's benchmark index falling 2%, after mixed data on the U.S. economy dashed hopes of early interest rate cuts.

Oil prices and US futures fell.

The Nikkei 225 in Tokyo fell 0.1% to 38,751.54, while the Kospi in South Korea fell 1.4% to 2,680.70.

Hong Kong's Hang Seng fell 2% to 16,622.02 after reports that house prices have continued to fall since February.

The Shanghai Composite Index lost 0.2% to 3,032.84, while the S&P/ASX 200 lost 0.9% to 7,646.70.

U.S. stocks fell on Thursday, with the S&P 500 falling 0.3% to 5,150.48, although it is still near its all-time high hit on Tuesday. The Dow Jones Industrial Average fell 0.4% to 38,905.66 and the Nasdaq Composite lost 0.3% to 16,128.53.

More crucial were moves in the bond market, where Treasury yields rose after a report showed inflation last month at the wholesale level was slightly higher than economists expected. This is the latest in a string of worse-than-forecast inflation data, dashing earlier hopes that the Federal Reserve could begin cutting interest rates at its meeting next week.

But other reports released Thursday also showed some slowing in the economy, maintaining hopes that the long-term inflation trend remains declining.

The question hanging over Wall Street is how much recent signals of potentially stubborn inflation will ultimately delay rate cuts. This, in turn, could dent the huge rise in US stocks since the end of October, which have risen in 16 of the last 19 weeks.

Fed officials will provide their latest forecasts for where interest rates will head this year on Wednesday, following their final policy meeting.

Among the data they will mull is a report on Thursday that said shoppers spent less at U.S. retailers last month than economists had expected. Such data weighs on the overall economy, but could also reduce upward pressure on inflation.

The government also said retail sales in January were weaker than initially estimated. High spending by US households was one of the cornerstones of keeping the economy out of recession despite high interest rates.

A separate report said fewer U.S. workers filed for unemployment benefits than expected last week. This is good news for workers in general. But too much strength in the labor market, which remains remarkably resilient, could add upward pressure on inflation.

The mix of data pushed the yield on the 10-year Treasury note up to 4.28% from 4.19% late Wednesday. The two-year yield, which is more in line with Fed expectations, rose to 4.69% from 4.63%.

On Wall Street, Dollar General fluctuated wildly despite reporting higher-than-expected profits and revenue for its latest quarter. The stock fell 5.1% after rising more than 6% earlier.

Dollar General executives said inflation is forcing customers to compromise in the aisles and stay away from nonessential items and big-name brands. A day earlier, rival Dollar Tree slumped after reporting weaker-than-expected results and saying it would close hundreds of its Family Dollar stores.

Dick's Sporting Goods rose 15.5% after the company reported higher-than-expected profit for its latest quarter and raised its dividend.

Robinhood Markets rose 5.2% as near-record stock and crypto prices fueled strong growth in its customers' trading activity last month.

US Steel fell 6.4% after President Joe Biden opposed the company's planned sale to Japan's Nippon Steel.

Nippon Steel said in December it would buy the Pittsburgh-based steelmaker for $14.1 billion in cash, raising concerns about the deal's impact on union workers, supply chains and U.S. national security.

U.S.-traded shares of Anheuser-Busch InBev fell 5.5% after Altria said it would sell part of its stake in the maker of Budweiser.

Homebuilder Lennar fell 7.6% despite reporting stronger-than-expected profit growth as its revenue fell short of analysts' forecasts.

In other trading early Friday, U.S. benchmark crude oil lost 12 cents to $81.14 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, lost 15 cents to $85.27 a barrel.

The US dollar rose to 148.39 Japanese yen from 148.32 yen. The euro fell from $1.0884 to $1.0878.

` business reporter Stan Choe contributed.

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