Asian Shares Lower After Wall Street Pullback on Strong Economic Data
Asian shares were mostly lower on Friday after Wall Street retreated following strong economic reports that raised concerns about high interest rates. U.S. futures edged higher, and oil prices also rose.
In Japan, the Nikkei 225 index lost 1.2 percent to 38,623.78, while the Hang Seng in Hong Kong fell 0.4 percent to 18,798.89. South Korea’s Kospi declined 1.2 percent to 2,689.42, and in Australia, the S&P/ASX 200 shed 0.9 percent to 7,740.60. Taiwan’s Taiex slipped 0.2 percent after hitting a record high on Thursday.
On Thursday, most U.S. stocks slumped, as strong economic reports led to worries about high interest rates. The S&P 500 fell 0.7 percent to 5,267.84, the Dow Jones Industrial Average dropped 1.5 percent to 39,065.26, and the Nasdaq composite slipped 0.4 percent to 16,736.03.
Treasury yields rose following the stronger-than-expected reports on the U.S. economy, causing traders to rethink bets on when the Federal Reserve might lower interest rates. Reports showed growth in U.S. business activity running at its fastest rate in more than two years and a solid job market despite high interest rates.
Investors are concerned that the Federal Reserve may delay cutting interest rates due to the hotter-than-expected economy. The yield on the 10-year Treasury rose to 4.47 percent.
Meanwhile, U.S. benchmark crude oil added 11 cents to $76.98 per barrel, and Brent crude rose 16 cents to $81.52 per barrel. The U.S. dollar rose to 157.05 Japanese yen and the euro fell to $1.813.
