BANGKOK, Dec 23 — Asian stocks fell on Friday, Treasury yields moved up and the dollar index rose as strong US data released overnight fuelled worries the Federal Reserve would stick to its aggressive tightening path in its bid to tame inflation, reported Deutsche Presse-Agentur (dpa).
US weekly jobless claims data pointed to a still-tight labour market and third-quarter gross domestic product (GDP) data was revised higher, renewing hawkish Federal Reserve bets and raising concerns about an economic contraction in 2023.
US personal consumption expenditures data due later in the day will provide further evidence on whether inflation is continuing to moderate.
China’s Shanghai Composite index slipped 0.28 per cent, to 3,045.87, as the country battled a wave of infections that have hit the elderly hard. Similarly, Hong Kong’s Hang Seng index dropped 0.44 per cent, to 19,593.06.
New estimates by an analytics company revealed the country may already be recording more than a million new infections and at least 5,000 deaths every day.
Japanese shares fell sharply as data showed core consumer inflation in the country hit a fresh 40-year high in November. Meanwhile, minutes of the Bank of Japan’s October policy meeting showed that some policymakers called for the need to continue checking how a future exit from ultra-low interest rates could affect markets and households’ mortgage rates.
The Nikkei average fell 1.03 per cent, to 26,235.25, taking its weekly decline to 4.69 per cent. The broader Topix index closed 0.54 per cent lower, at 1,897.94, with chip-related stocks and shippers pacing the declines.
Tokyo Electron gave up 3.7 per cent and Advantest plunged 4.5 per cent after Micron Technology Inc issued a dismal outlook, and announced layoffs and cost-cutting measures. But utility Kansai Electric Power jumped 5.3 per cent after the government announced a new policy to maximise the use of nuclear energy.
Seoul stocks tumbled on expectations of further rate hikes in the United States. The Kospi average slumped 1.83 per cent, to 2,313.69, tracking steep falls on Wall Street overnight.
Hyundai Motor, Samsung Electronics, SK Hynix and LG Energy Solution dropped one per cent to three per cent.
Australian markets ended notably lower, dragged down by banks, miners and energy stocks. The benchmark S&P/ASX 200 index slid 0.63 per cent, to 7,107.70, while the broader All Ordinaries index closed 0.65 per cent lower, at 7,287.80.
Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 ended down 0.25 per cent, at 11,494.96.
US stocks fell sharply overnight and the dollar rose, as signs of a tight labour market and an upward revision to the US third-quarter growth rate heightened expectations of further Fed tightening.
The technology-heavy Nasdaq Composite tumbled 2.2 per cent, to its lowest closing level in well more than a month, while the Dow dropped 1.1 per cent and the S&P 500 shed 1.5 per cent.
— Bernama
