After Wall St losses and recession fears, Asian markets rebound

BEIJING (AP) — Asian stock markets rose Friday after Wall Street losses deepened as worries grow that the U.S. economy is headed for recession.

Shanghai, Tokyo, and Hong Kong all advanced. Seoul declined. Oil prices gained.

Traders are concerned that the Federal Reserve and other central bank might try to push Western economies into recession to reduce inflation, which is at its multi-decade peak.

Lael Brainard was a Fed board member. He is also President. Christine Lagarde In separate appearances, of the European Central Bank on Thursday reiterated plans to keep interest rate levels high despite market hopes central bank might reverse plans in response to indications that economic activity might have cooled.

“That again implies more hikes to come and then a long hiatus, not the imminent reversal markets are pricing for,” Rabobank said in a report.

The Shanghai Composite Index climbed 0.6% to 3,258.90. Meanwhile, the Nikkei225 Tokyo rose 0.4% to 26,499.02. The Hang Seng Hong Kong increased 1.1% to 21,890.56

The Kospi in Seoul advanced 0.5% to 2,391.49 and Sydney’s S&P-ASX 200 added 0.3% to 7,455.20.

India’s Sensex rose 0.1% to 60,931.27. New Zealand and Southeast Asian markets saw a rise.

On Wall Street, the benchmark S&P 500 index lost 0.8% on Thursday to 3,898.85 in its third daily decline.

More than 75% of the stocks in the S&P 500 closed lower. Technology stocks, retailers, and industrial stocks were the worst affected. Chipmaker Nvidia fell 3.5%, Home Depot dropped 4% and Deere & Co. fell 4.1%.

The Dow Jones Industrial Average lost 0.8% to 33.044.56. Tech-heavy Nasdaq fell 1% to 10,852.27.

Reports showed weakness in the U.S. housing industry and manufacturing in the mid-Atlantic region, though they weren’t quite as bad as expected and the job market It appears to be healthy. They received worse readings than was expected Wednesday retail salesIt is the cornerstone of the economy.

In order to curb inflation which has reached multi-decade levels in some countries, the Fed and Central Banks of Europe and Asia raised interest rate aggressively last year.

Forecasters for the United States expect a recession this year, but it is likely to be temporary.

The Fed’s key interest rate for lending is now between 4.25% and 4.50%. This is an increase of close to zero a year ago. February 1 will see the Fed’s next rate decision. Investors are expecting an increase of 0.25 percent next month. This is smaller than previous increases of up 0.75 percentage points.

The benchmark U.S. crude oil rose 14 cents per barrel to $80.75 in electronic trading on New York Mercantile Exchange. Brent crude, which is the international benchmark oil price, rose 8 cents per barrel to $86.24 in London.

From Thursday’s 128.44yen, the dollar rose to 129.75yen. The euro dropped to $1.0827, from $1.0831.

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