TOKYO (AP) – Asian stocks fell on Thursday, continuing a weak start to 2024 on Wall Street as Japan’s markets reopen.
In Tokyo, at least 77 people died and dozens of others went missing in a major earthquake, and markets held a moment of silence instead of ringing New Year’s Eve bells, creating a mood of sadness as the year began. Ta.
Instead of the customary women in colorful kimonos, officials in dark suits bowed on stage. Japan’s benchmark Nikkei 225 fell 1.2% to 33,048.58.
Hong Kong’s Hang Seng Index fell 0.6% to 16,542.19, and the Shanghai Composite Index fell 1% to 2,938.35.
Australia’s S&P/ASX 200 fell 0.4% to 7,493.00. South Korea’s Kospi fell 0.8% to 2,585.77.
Stocks on Wall Street fell as a weak start to the year continued into its second day.
The S&P 500 fell 0.8% to 4,704.81, but remained within 2% of its all-time high set just two years ago. The Dow Jones Industrial Average fell 0.8% from its all-time high to $37,430.19. The Nasdaq Composite Index led the market decline, dropping 1.2% to 14,592.21.
Some of last year’s biggest winners once again returned some of their profits, weighing on the market. Tesla, for example, fell 4% after more than doubling last year. The company and the six other “Magnificent 7” Big Tech stocks that accounted for the bulk of Wall Street’s profits last year have retreated some after a stunning rally.
Several reports released Wednesday morning suggest the overall economy may be slowing from strong growth last summer, and the Federal Reserve is hopeful it can rein in inflation. . There is a risk that it may slow down too much.
According to one report, US Employer had about 8.8 million job listings as of the end of November, a slight decrease from the previous month and the lowest number since the beginning of 2021. The report also showed a slight decrease in the number of workers who left their jobs during November.
The Fed is exploring just such a cooldown, hoping it can curb upward inflation pressures without requiring large-scale layoffs.
“These data will be welcome news to policymakers,” said Rubela Farooqi, chief U.S. economist at High Frequency Economics.
The Institute for Supply Management’s second report showed that U.S. manufacturing is slightly better than economists expected, but still shrinking. While manufacturing has been one of the hardest-hit sectors of the economy recently, the job market and U.S. household spending remain resilient.
U.S. Treasury yields fell immediately after the news, but then rose throughout the day. The 10-year Treasury yield finally fell to 3.91% from 3.94% late Tuesday. It has generally fallen since it exceeded 5% in October, which put strong downward pressure on the stock market.
Traders largely expect the first rate cut could occur in March, raising the possibility that the Fed will cut its key policy rate by at least 1.50 percentage points in 2024, according to CME Group data. is considered to be high. The federal funds rate currently ranges from 5.25% to 5.50%.
Even if the Fed hits a perfect landing to escape high inflation without causing an economic downturn, some critics also argue that the stock market has simply gone too far and too fast in recent months, at least for a time. It says it needs to be stopped. Run.
In energy trading, benchmark U.S. crude oil rose 25 cents to $72.95 per barrel in electronic trading on the New York Mercantile Exchange. Prices soared by $2.32 a barrel on Wednesday as concerns grew over the risk of war between Israel and Hamas spreading to other parts of the Middle East.
Brent crude, the international standard, added 14 cents to $78.39 a barrel.
In currency trading, the dollar fell from 143.29 yen to 143.28 yen. The euro rose to $1.0928 from $1.0922.
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AP Business Writer Stan Cho contributed.
Yuri Kageyama appears in X https://twitter.com/yurikageyama
Yuri Kageyama, Associated Press
