Asian shares fall in thin trading after rout on Wall Street

Asian shares fall in thin trading after rout on Wall Street thumbnail

Global shares have fallen and oil prices have also declined as European energy ministers were set to meet to discuss Russian supply issues and sanctions

May 2, 2022, 9: 31 AM

4 min read

TOKYO — Global shares fell Monday and oil prices lost about $3 a barrel as European energy ministers were set to meet to discuss Russian supply issues and sanctions.

U.S. After Friday’s Wall Street rout, futures rose.

Trading was shut down for holidays in China, many Asian markets, and Britain.

The CAC 40 in Paris dropped 1.7% in early trading to 6,420.87. Germany’s DAX was down nearly 1.0% at 13,963.11. The future for the Dow industrials rose 0.3% while that for the S&P 500 was 0.2% higher. A report showing that pandemic lockdowns in China have impacted factory activity, which is a key regional driver of growth, has been a source of concern.

The monthly purchasing managers’ index, released over the weekend by China’s National Bureau of Statistics, fell to 47.4 in April, down from 49.5 in March on a 100-point scale. Numbers below 50 show activity contracting.

The COVID-19 outbreaks have impacted China’s factory activities and market demand, said the bureau’s statistician Zhao Qinghe. Some enterprises have cut or stopped production due to disruptions in logistics and supply of raw materials and components.

Residents of Shanghai, China’s most populous city, spent most of April under lockdown. Beijing, the capital, is currently mass-testing millions.

Japan’s benchmark Nikkei 225 declined 0.1% to finish at 26,818.53. Tokyo trading will be closed Tuesday through Thursday due to national holidays. It will reopen on Friday.

Australia’s S&P/ASX 200 dropped 1.2% to 7,347.00. South Korea’s Kospi shed 0.3% to 2,687.45.

A first group of civilians, who had been held for several weeks in a Mariupol steel plant under Russian siege, was expected to reach a Ukrainian city later Monday. The EU energy ministers met to discuss Russia’s decision not to cut gas supplies from Poland and Bulgaria, and to debate a sixth round sanctions regarding Russia’s war against Ukraine.

The energy ministers also planned to discuss what steps to take in the event that Russia increases its pressure by cutting gas supplies from other countries. The benchmark U.S. crude oil lost $2 before the meeting. 98 to $101. 71 a barrel in electronic trading on the New York Mercantile Exchange. It shed 67 cents to $104. 69 per barrel on Friday.

Brent crude oil, the international standard, dropped $2. 78 to $104. 36 a barrel.

On Friday, steep losses for technology stocks pushed the S&P 500 down 3.6% while the tech-heavy Nasdaq Composite fell 4%, finishing April down 13.3% in its biggest monthly loss since 2008.

The Dow Jones Industrial Average dropped 2.8% and the Russell 2000 slid 2.8%.

” The reality is that equity risk sentiment is terrible: and Bull/Bear Reading shows bulls have never had worse fortunes,” Stephen Innes, of SPI Asset Management, stated in a comment.

“As such, we are in an extremely fragile market that is delivering large moves on low liquidity levels – especially in Tech where growth is slowing down,” Innes stated.

Investors have been reviewing financial results from big tech companies, industrial firms and retailers and some disappointing results or outlooks from Apple, Google’s parent company and Amazon helped fuel the selling last week. They are also keeping an eye on the U.S. Federal Reserve’s next steps to combat inflation. This week, the Fed is expected to announce a second round of rate increases. This means higher borrowing costs, at a time when inflation worries are high in the minds of consumers and investors alike.

In currency trading, the U.S. dollar edged up to 130. 08 Japanese yen from 129. 83 yen. The euro cost $1. 0533, inching down from $1.0546.

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Yuri Kageyama is on Twitter https://twitter.com/yurikageyama


ABC News


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