Asian stocks mixed after the stocks retreated to Wall Street

Stocks in Asia were mixed on Wednesday after a shaky day on Wall Street ended a month sparked by unrest over a possible recession, inflation and rising interest rates.

The Tokyo Nikkei 225 rose 0.7% to 27,457.89. Late Tuesday night, Japan’s parliament passed an additional budget of $ 21 billion to fight rising fuel and food prices following Russia’s invasion of Ukraine.

The supplementary budget for the current fiscal year, which began on April 1, will fund part of an emergency economic package of $ 48 billion, which the government adopted in April. It includes subsidies to oil wholesalers to minimize the impact on consumers.

In Sydney, the S&P / ASX rose 0.1% to 7,219.30 after the government reported that the economy in the first quarter of the year grew by 3.2% year on year, or 0.8% in the quarter.

It was slower than growth by 3.6% in the last quarter of 2021, but still relatively strong, analysts say.

“Superior GDP growth in the first quarter confirms our view that the economy will perform better in the face of rising interest rates and falling real incomes than most expect,” said Marcel Thieliant of Capital Economics.

Hong Kong’s Hang Seng fell 0.7% to 21,255.95, while the Shanghai Composite Index fell 0.3% to 3,175.68. Both indexes rose sharply on Tuesday as Shanghai eased its strict anti-virus restrictions on business and other activities.

South Korean markets were closed for the holiday. India’s rate has risen, while Taiwan and Thailand have fallen.

Oil prices remained virtually unchanged after falling from nearly $ 120 a barrel on Tuesday, when prices rose after the European Union agreed to block most oil imports from Russia due to its invasion of Ukraine.

In electronic trading on the New York Mercantile Exchange, U.S. benchmark oil lost 2 cents to $ 114.65 a barrel.

Brent crude, which is the price base for international oil trade, fell 14 cents to $ 115.46 a barrel.

The jump of more than 50% this year’s oil prices is a big part of the high inflation spanning the world. Tuesday’s report shows that inflation in the 19 countries using the euro reached 8.1% in May, the highest level since the record began in 1997.

The S&P 500 index fell 0.6% to 4,132.15, recouping about half of its loss at the start of the day. The Dow Jones industrial average fell 0.7% to 32,990.12 and the Nasdaq fell 0.4% to 12,081.39. Both also reduced some post-fall losses by at least 1.4%.

Shares of small companies feel more than the broad market. Russell 2000 fell 1.3% to 1,864.04.

The S&P 500 ended May with growth of less than 0.1%, after falling 8.8% in April. Now it is 13.9% lower than the record set earlier this year.

By mid-May, the S&P 500 had fallen to seven consecutive weeks, the longest such lane since the dot-com bubble came down two decades ago. The slowdown in U.S. economic data has heightened concerns that high inflation will force the Federal Reserve to raise interest rates so aggressively that it will cause a recession.

President Joe Biden met with Federal Reserve Chairman Jerome Powell on Tuesday, the first since Biden reappointed Powell as head of the central bank, and a few weeks after the Senate confirmed a second term.

“My plan to fight inflation starts with a simple proposal: respect the Fed, respect the independence of the Fed,” Biden said.

Shares have managed to avoid a full-blown bear market, at least not yet, and the S&P 500 has yet to close more than 20% below its record. There has been speculation that the Fed may consider suspending the rate hike at its September meeting.

U.S. Treasury profitability has risen after reports show that American consumer confidence is higher than economists expected, and house prices have risen more than expected.

Yields on 10-year Treasury bonds rose to 2.86% from 2.75% on Friday at the end.

Starting Wednesday, the Fed will begin allowing some of its trillion-dollar treasury bonds and other bonds it has accumulated as a result of the pandemic to cut off its balance sheet. Such a move should put upward pressure on the long-term profitability of treasuries, and this is one way the Fed is trying to curb inflation by slowing the economy.

In other trades, the dollar rose to 129.23 Japanese yen from 128.70 yen on Tuesday. The euro fell to $ 1.0712 from $ 1.0735.

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