Asian markets follow Wall St up but headed for annual loss

Asian markets follow Wall St up but headed for annual loss

BEIJING — Asian stocks rose Friday while Europe opened lower as most major markets headed for big annual losses following a year that was roiled by Russia’s invasion of Ukraine and interest rate hikes to cool surging inflation.

Shanghai and Tokyo advanced. London and Frankfurt fell. U.S. futures fell as Wall Street closed its final trading day of 2022. Oil prices fell back.

Wall Street’s benchmark S&P 500 index gained Thursday after the number of people applying for unemployment benefits rose only slightly last week despite interest rate hikes to cool inflation by slowing economic activity.

“Considering the market news was sparse, the shift higher has the hallmarks of a dead cat bounce,” said Stephen Innes of SPI Asset Management in a report.

In early trading, the FTSE in London lost 0.4% to 7,483.42. It is poised to be the only major market to see 2022, gain about 1% over the past year. Other markets are likely to experience annual losses after Russia’s attack in Ukraine drove up oil and wheat prices. The Federal Reserve and other central banks around the world raised rates to slow down economic activity and cool off inflation, which is at multi-decade highs. China’s shutdown of Shanghai and other cities to fight COVID-19 outbreaks disrupted manufacturing and shipping.

The DAX in Frankfurt shed 0.6% to 13,996.57. It is headed for a 12% loss in 2022. The CAC-40 in Paris declined 0.5% to 6,539.21. It is down 9.5% over the past year.

On Wall Street, the S&P 500 future was off 0.4%. The Dow Jones Industrial Average saw a 0.3% decline.

On Thursday, the S&P 500 rose 1.7%. It will end the year down about 20%, which would be its biggest annual decline since 2008.

The Dow gained 1%, while the Nasdaq composite gained 2.6%. Both are heading for annual losses.

In Asia, the Shanghai Composite Index gained 0.5% to 3,089.25. The Chinese benchmark is on track to end 2022 down more than 14% after the world’s second-largest economy was depressed by anti-virus controls and a crackdown on corporate debt.

Tokyo’s Nikkei 225 finished unchanged at 26,094.50. It is headed for an annual loss of almost 10%. The Hang Seng in Hong Kong added 0.2% to 19,781.41. It is off more than 14% this year.

Sydney’s S&P-ASX 200 was 0.3% higher at 7,038.70. India’s Sensex opened up 0.3% at 61,133.88. New Zealand’s stock market declined, while Southeast Asian markets rose.

South Korean markets closed for a holiday. The country’s benchmark Kospi index is headed for a loss of more than 25% for the year.

Investors worry central banks are willing to cause a recession if necessary. The Fed’s key lending rates range from 4. 25% to 4.5% after seven increases this year. According to the U.S. central banks, this range will be between 5% and 5. 25% by the end of 2023. It doesn’t forecast a rate cut prior to 2024..

In energy markets, benchmark U.S. crude fell 50 cents to $77. 90 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 56 cents on Thursday to $78.40. Brent crude, used as the price basis for international oil trading, gave up 36 cents to $83. 10 per barrel in London. It lost $1 the previous session to $82. 26 a barrel.

The dollar declined to 132. 02 yen from Thursday’s 132. 90 yen. The euro fell to $1. 0668 from $1.0677.

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