Asian markets pull back after recession fears weigh on Wall Street


Asian markets were mostly lower in early trading Wednesday, after recession worries led to losses on Wall Street.

President Donald Trump on Tuesday admitted that tariffs against Chinese goods may cause economic pain in the U.S., but said his hard line is necessary and will be worth it in the long run. “It’s about time, whether it’s good for our country or bad for our country short-term,” Trump said, adding that he didn’t think the nation was at risk of recession.

Japan’s Nikkei

NIK, -0.36%

  fell 0.3% while Hong Kong’s Hang Seng Index

HSI, +0.11%

  gave up early gains and was up 0.1%. The Shanghai Composite

SHCOMP, +0.02%

  also slid from session highs, and was last about flat, while the smaller-cap Shenzhen Composite

399106, -0.08%

  declined about 0.3%. South Korea’s Kospi

180721, +0.00%

  rose 0.2%, and benchmark indexes in Taiwan

Y9999, +0.04%

 , Singapore

STI, -0.51%

 , Malaysia

FBMKLCI, -0.19%

  and Indonesia

JAKIDX, -0.56%

  were mixed. Australia’s S&P/ASX 200

XJO, -1.09%

  slipped 1%.

Among individual stocks, SoftBank

9984, -3.08%

  and Mazda Motor

7261, -3.02%

  fell in Tokyo trading, while Fast Retailing

9983, +0.99%

  rose. In Hong Kong, CSPC Pharmaceutical

1093, +6.11%

  gained while Geely Automobile

175, -1.44%

  and Sunny Optical

2382, +0.85%

  fell. Kia Motors

000270, -1.51%

  advanced in South Korea, while Foxconn

2354, +1.12%

  gained in Taiwan. Mining giants BHP

BHP, -2.47%

  and Rio Tinto

RIO, -2.50%

  fell in Australia, and banking stocks, led by Westpac

WBC, -1.96%

 , slid.

U.S. stocks fell Tuesday after another slide in bond yields and a mixed batch of corporate earnings. Financial sector stocks led the declines.

Investors looked ahead to the Fed’s release Wednesday of notes from its policymaking meeting last month and a speech Friday by chairman Jerome Powell.

Markets have “entered a holding pattern” ahead of Powell’s speech at an annual gathering in Jackson Hole, Wyoming, said Jeffrey Halley of Oanda in a report.

Investors expect Powell to signal the Fed “is about to embark on a reinvigorated wave of easing,” said Halley. However, he said U.S. data “simply does not support the need for an aggressive easing cycle.”

On Wall Street, the benchmark Standard & Poor’s 500 index

SPX, -0.79%

  snapped a three-day winning streak and fell 0.8% to 2,900.51. The Dow Jones Industrial Average

DJIA, -0.66%

  slid 0.7% to 25,962.44. The Nasdaq composite

COMP, -0.68%

  dropped 0.7% to 7,948.56.

The U.S. market has been volatile this month as investors try to parse conflicting signals on the U.S. economy and determine whether a recession is on the horizon. A key concern is that the U.S.-Chinese tariff war will weigh on global economic growth.

Some chipmakers rose on Monday that the Trump administration delayed enforcement of export curbs on sales of U.S. technology Chinese telecom equipment maker Huawei Technologies Ltd.

Last week, many stock indexes around the world hit their lowest points of the year before rallying. Analysts say the concerns that drove that sell-off could resurface at any time.

Benchmark U.S. crude

CLV19, +0.37%

  gained 18 cents to $56.31 per barrel in electronic trading on the New York Mercantile Exchange. The contract shed 1 cent on Tuesday to close at $56.13. Brent crude

BRNV19, +0.48%

 , used to price international oils, rose 24 cents to $60.27 per barrel in London. The contract advanced 27 cents the previous session to $60.03.

The dollar

USDJPY, +0.23%

  gained to 106.46 yen from Tuesday’s 106.22.

Source : MTV