Stock market today: Asia follows Wall Street lower after US data revive fears about rate hike
Asian stock markets have tumbled after mixed U.S. economic data revived worries the Federal Reserve might hike interest rates again
BEIJING — Asian stock markets tumbled Monday after mixed U.S. economic data revived worries the Federal Reserve might hike interest rates again.
Hong Kong's main market index plunged 2.3% and Shanghai, Tokyo and Sydney also fell. Oil prices retreated.
Wall Street's benchmark S&P 500 index slipped 0.1% on Friday after government data showed producer price inflation accelerated in July. Earlier data showed consumer prices also rose faster in July.
“Setbacks to optimistic expectations are hard to ignore,” said Tan Boon Heng of Mizuho Bank in a report. “The data need to provide reasons” for the Federal Reserve «not to hike.
The Shanghai Composite Index fell 1.1% to 3,154.16 and the Nikkei 225 in Tokyo shed 1% to 32,160.30. The Hang Seng in Hong Kong sank to 18,629.82.
The Kospi in South Korea retreated 1% to 2,565.37 and Sydney's S&P-ASX 200 was 0.8% lower at 7,283.60.
New Zealand and Southeast Asian markets also declined.
On Wall Street, the S&P 500 fell to 4,464.05 on Friday after the Labor Department's producer price index rose 0.8% over a year earlier, accelerating from June's 0.2% rate. The index fell 0.3% for the week, its second consecutive weekly decline.
The Nasdaq composite fell 0.7% to 13,644.85. The Dow Jones Industrial Average gained 0.3% to 35,281.40.
The price data clashed with investor hopes the Fed will decide inflation is under control following a year of rapid rate hikes to cool economic activity and no more increases are needed.
The majority of Wall Street traders still bet the central bank will make no change to the fed funds rate at its September meeting, according to data
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