Asian stocks fell on Friday after a decline on Wall Street left the Nasdaq Composite Index down 2.5%.
Tokyo prices fell about 2% but regained some of their gains later in the session. Hong Kong, Shanghai and Seoul were also lower.
China announced that the global trade surplus rose by about 30% in 2021 to $676.4 billion. Customs data on Friday showed that the trade surplus in December ballooned 20.8% from a year earlier to a record monthly level of $94.4 billion.
Exports soared to $3.3 trillion in 2021 despite shortages in processor chips for smartphones and other products as global demand recovers from the pandemic. Producers have also been hampered by energy rationing imposed in some areas.
South Korea’s central bank raised its key interest rate to 1.25% from 1%, in order to counter inflation. But as it rolls back monetary stimulus, having raised the record rate twice so far, the government on Friday announced 14 trillion won ($11 billion) in additional spending, mainly to help small businesses recover from the impact of the coronavirus outbreak.
“Inflation rose to 3.7% in December, and the latest rate hike gives a strong signal that the bank is prioritizing tightening the screws on inflation and fiscal imbalances,” Alex Holmes of Capital Economics said in a report. imminent.”
South Korea’s Kospi Index fell 1.4% to 2,920.75.
The Shanghai Composite lost 0.6% to 3534.17 and Hong Kong’s Hang Seng lost 1% to 24179.16. The Nikkei 225 index in Tokyo lost 1.5 percent to 28,078.98.
In Sydney, the S&P/ASX 200 fell 0.9% to 7,405.70.
India’s Sensex fell 0.4%.
Technology companies led the sell-off on Wall Street on Thursday, which sent major indexes lower for the week.
The S&P 500 fell 1.4% to 4,659.03. The Nasdaq tech index fell 2.5% to 14806.81. The Dow Jones Industrial Average fell 0.5% to 36113.62.
Smaller company stocks also fell. The Russell 2000 Index fell 16.62 points, or 0.8%, to 2,159.44.
The sale came as investors weighed the company’s earnings reports and new data pointing to higher prices at the wholesale level. Inflation has been a major focus for investors as they try to gauge the impact of higher prices on businesses, consumers and the Federal Reserve’s policy on interest rates in 2022.
“Investors remain concerned that the worst we have yet to see in terms of inflation,” said Sam Stovall, chief investment analyst at CFRA.
The yield on the 10-year Treasury fell to 1.72% from 1.73% late Wednesday.
The Labor Department reported Thursday that the Producer Price Index, which measures prices at the wholesale level, rose by a record 9.7% in all of 2021. United States economy. The report comes after consumer price data for December was released on Wednesday, which showed inflation jumped at its fastest pace in nearly 40 years last month.
He said that many large tech companies with strong revenues and profits, such as Apple and Microsoft, will suffer less than their peers with little revenue, but the outlook is rosy.
However, those big tech names fell out on Thursday. Apple shares fell 1.9 percent and Microsoft 4.2 percent.
Health care stocks, telecom services companies and a mix of companies that rely on direct consumer spending were among the losers. Pfizer is down 2%, Facebook’s Meta Platforms are down 2%, and Amazon shares are down 2.4%.
Industrial companies were among the few gainers. Delta Air Lines stock rose 2.1% after announcing surprisingly good financial results for the fourth quarter. Other airlines also got a boost. American Airlines shares rose 4.5 percent and United Airlines rose 3.5 percent.
The price of benchmark US crude oil fell 33 cents to $81.79 a barrel in electronic trading on the New York Mercantile Exchange.
Brent crude, the basis for international oil pricing, lost 15 cents to $84.32 a barrel.
The dollar fell to 113.66 yen from 114.18 yen. The euro rose to $1.1476 from $1.1457.