Today’s stock market: Asian shares follow Wall Street’s decline

Stocks in Asia retreated on Thursday following a drop in U.S. stocks due to higher bond yields. The Dow Jones Industrial Average lost over 400 points, leading to a negative trend in the Asian markets.

In Tokyo, the Nikkei 225 benchmark fell by 1.5%, while the Hang Seng in Hong Kong declined by 0.6%. The Shanghai Composite index saw a slight increase of less than 0.1%. Similarly, Australia’s S&P/ASX 200 slipped by 0.4% and the Kospi in Seoul sank by 0.9%.

According to Mizuho Bank, global inflation exceeding expectations is impacting asset markets, leading to concerns about adverse demand effects from higher rates. This has caused a shift in market sentiment, with investors closely monitoring the situation.

In the U.S., the S&P 500 and the Dow industrials experienced losses, with American Airlines Group and ConocoPhillips being among the companies affected. American Airlines Group cut its profit forecast, leading to a 13.5% drop in its shares, while ConocoPhillips announced an all-stock deal to acquire Marathon Oil, causing a 3.1% decline in its stock price.

The rise in longer-term Treasury yields also contributed to the negative sentiment in the stock market. The 10-year yield increased to 4.61%, impacting various investments. Traders are adjusting their expectations for potential rate cuts by the Federal Reserve, as inflation remains a concern.

Despite these challenges, some companies like Dick’s Sporting Goods and Chewy reported better-than-expected profits, resulting in stock price increases. The market remains volatile as investors navigate through the uncertainties surrounding inflation and interest rates.