Asian markets slide after Wall Street liquidation

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Stocks in Asia fell across the board on Tuesday after a large decline on Wall Street led by tech companies.

Nikkei NIK from Tokyo,
-2.19%
fell 3%, while oil prices CLX21,
+ 0.05%
bordered higher.

Sino-U.S. Tensions returned to center stage after U.S. Trade Representative Katherine Tai said she plans frank conversations with officials in Beijing over an interim trade deal to resolve a war tariff.

Tai said she did not want to “ignite trade tensions with China.” But his comments suggest a continuation of US policy towards Beijing under President Joe Biden compared to the strategy adopted by his predecessor, Donald Trump.

Speaking to the Center for Strategic and International Studies in Washington, DC, she also said that the United States “must defend our economic interests to the end” and take “whatever steps are necessary to protect us from waves of damage. inflicted over the years by unjust actions. competetion.”

Shanghai is closed until Friday for a public holiday. But stocks fell 0.3% in Hong Kong HSI,
-0.08%
at 23,989.61, while Tokyo ended the morning down 2.8% to 27,658.31. Kospi 180721 from South Korea,
-2.04%
fell 2.1% to 2,956.04 and the S & P / ASX 200 XJO,
-0.41%
in Australia fell 0.8% to 7,218.90.

Rising bond yields and energy prices are fueling investor worries about inflation.

The price of U.S. oil hit nearly $ 78 a barrel, its highest level since 2014, as OPEC and allied oil producers stuck to a plan to cautiously increase production even as global demand for crude is increasing.

The yield on the 10-year Treasury bill was held at 1.48%.

The S&P 500 SPX,
-1.30%
fell 1.3% to 4,300.46. The Dow Jones Industrial Average DJIA,
-0.94%
fell 0.9% to 34,002.92, and the technology-intensive Nasdaq COMP,
-8.99%
lost 2.1% to 14,255.48.

Small business shares also fell. The Russell 2000 RUT,
-1.08%
the index lost 1.1% to 2,217.47.

Facebook FB,
-4.89%
slipped 4.9% per day after a former employee told “60 Minutes” that the company has always chosen its own interests over the public good. The social network and its Instagram and WhatsApp platforms also suffered a global outage that began around mid-morning US time on Monday.

Apple AAPL,
-2.46%
fell 2.5% and Microsoft MSFT,
-2.07%
fell 2.1%.

Natural gas prices jumped 2.6%. Energy companies have increased along with energy prices. Devon Energy DVN,
+ 5.30%
increased 5.3% for the biggest gain of the S&P 500 SPX,
-1.30%.
Marathon Oil MRO,
+ 4.14%
climbed 4.1%.

In Tuesday’s trading in Asia, the benchmark US crude CLX21,
+ 0.05%
rose 35 cents to $ 77.97 a barrel. Brent crude, the standard for international prices, gained 47 cents to $ 81.73 a barrel.

Investors are increasingly worried about inflation as oil prices rise and companies face supply issues that drive up their costs and force them to raise prices. Wall Street is also worried about the Federal Reserve’s schedule to reduce bond purchases and a possible decision to raise its benchmark interest rate.

Wall Street will get more information on the health of the economy this week. On Tuesday, the Institute for Supply Management will release its service sector index for September. The service sector is the largest part of the economy and its health is a key factor for growth.

The Ministry of Labor will release its employment report for September on Friday. The job market is struggling to fully recover from the damage caused by COVID-19 over a year ago.

The US dollar USDJPY,
+ 0.23%
increased from 110.93 yen to 111.11 Japanese yen. The euro slipped to $ 1.1608 from $ 1.1618.


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