BEIJING (AP) — Asian stocks followed Wall Street lower Tuesday as fears increased that U.S. rate hikes to fight inflation might stall economic growth.
Market benchmarks in Tokyo, Hong Kong, Seoul and Sydney fell. Shanghai advanced. Oil prices fell more than $1 but stayed above $100 per barrel.
Wall Street’s benchmark S&P 500 index tumbled 3.2% on Monday, hitting its lowest point in more than a year.
The Federal Reserve is trying to cool inflation that is running at a four-decade high, but investors worry that might trigger a U.S. downturn. That adds to pressure from Russia’s war on Ukraine and a Chinese slowdown.
The U.S. central bank has raised its key rate from close to zero, where it sat for much of the coronavirus pandemic. Last week, it indicated it will double the size of future increases from its usual margin.
China on Monday reported export growth fell in April due to weak global demand while imports grew less than 1% over a year earlier.
In energy markets, benchmark U.S. crude sank $2.02 to $101.07 per barrel in electronic trading on the New York Mercantile Exchange. The contract plunged $6.68 to $103.09 on Monday. Brent crude, the price basis for international oil trading, lost $2.14 to $103.80 per barrel in London. It fell $6.45 the previous session to $105.94.
The dollar declined to 130.22 yen from Monday’s 130.32 yen. The euro rose to $1.0577 from $1.0566.