[ad_1]
Asian shares fell on Thursday, putting the brakes on Wall Street’s big rally following disappointing corporate profit reports and warnings that the market had gone too far, too fast.
US futures rose while oil prices fell as data showed an unexpected increase in US stockpiles.
Tokyo’s Nikkei 225 index fell 1.6% to 33,140.47, with Japanese automaker Toyota shedding as much as 4% on the benchmark. The company said on Wednesday that it is 10 lakh vehicles are being recalled A defect that causes the airbags to fail to deploy, increasing the risk of injury.
This came on top of news from Toyota’s small car subsidiary Daihatsu had suspended The investigation followed and found improper safety testing in 64 models across all of its vehicle shipments in Japan and overseas, some of which were made for Toyota, Mazda and Subaru. Japanese Transport Ministry officials raided Daihatsu’s offices on Thursday.
Australia’s S&P/ASX 200 slipped 0.5% to 7,504.10. South Korea’s Kospi fell 0.6% to 2,600.02. Hong Kong’s Hang Seng was flat at 16,617.87, while the Shanghai Composite was up 0.6% at 2,918.71.
political cartoon
India’s Sensex was 0.2% higher and Bangkok’s SET rose 0.2%.
Wednesday’s losses on Wall Street were widespread, and about 95% of the companies within the S&P 500 declined.
The S&P 500 fell 1.5% to 4,698.35, its biggest loss since starting a monster-sized rally shortly before Halloween. The Dow Jones Industrial Average fell 1.3% from its record high to 37,082.00, while the Nasdaq Composite dropped 1.5% to 14,777.94.
FedEx fell 12.1% for one of the market’s biggest losses after reporting weaker revenue and profit in the latest quarter than analysts expected. It now also expects its revenues for the full financial year to fall from a year ago levels rather than remain broadly flat due to pressure on demand.
The package delivery company fuels commerce around the world, and its signal to potentially weak demand could undercut the hope fueling Wall Street’s recent rally: that the Federal Reserve will suppress high inflation by slowing its… Could make a perfect landing for the economy but not enough to cause a recession.
Winnebago Industries stock fell 5.6% after it fell short of analysts’ profit expectations for the latest quarter.
General Mills, which sells Progresso soups and Yoplait yogurt, reported stronger-than-expected profit in the latest quarter, but its revenue fell as the recovery in sales volume was slower than expected. Its stock fell 3.6%.
Still, some reports have shown that the US economy may be in a stronger position than expected. Both confidence among consumers in December and Sale of already occupied houses The improvement in November exceeded economists’ expectations.
Encouraging signs of reduction in inflation are also increasing at the global level. Inflation in the United Kingdom in November unexpectedly slow It rose to 3.9% from October’s 4.6% rate, the lowest since 2021.
The subdued price rises are raising expectations that central banks around the world may focus their campaign on sharply raising interest rates in 2024, aimed at getting inflation under control. For the Federal Reserve in particular, the general expectation is that its key interest rate will fall at least 1.50 percentage points from its current range of 5.25% to 5.50% in 2024, its highest level in more than two decades.
Treasury yields have been falling since late October on such expectations, and they fell again after the UK inflation report.
The yield on the 10-year Treasury rose to 3.86% from 3.85% late Wednesday.
In other deals, U.S. benchmark crude oil was down 8 cents at $74.14 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international benchmark, fell 7 cents to $79.63 a barrel.
The US dollar fell to 143.15 JPY from 143.56 yen. The euro rose to $1.0945 from $1.0943 late Wednesday.
Copyright 2023 The associated Press, All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
[ad_2]
Source link