BANGKOK (AP) – Stocks fell in Asian markets on Thursday as a long record rally lost further momentum after a third straight day of declines on Wall Street.
Oil prices rose almost $1, and U.S. futures were mixed.
Japan’s benchmark Nikkei stock average rose sharply early, ending 0.1% higher at 38,143.29, as the Purchasing Managers Index showed deteriorating conditions in both Japan’s manufacturing and services industries. The comprehensive PMI compiled by au Jibun Bank was the lowest in two years.
“Japan’s private sector entered contractionary territory early in the fourth quarter of this year,” Osama Bhatti, an economist at S&P Global Market Intelligence, said in a commentary. “Confidence in growth in business activity over the next 12 months weakened in October, the least pronounced since August 2020.”
Chinese markets fell, with Hong Kong’s Hang Seng Index down 1.1% to 20,531.19 and the Shanghai Composite Index down 0.8% to 3,277.35.
In Seoul, the Kospi fell 0.7% to 2,581.03, while Australia’s S&P/ASX 200 index fell 0.1% to 8,206.30.
Taiwan’s ThaiEx fell 0.6% and India’s Sensex fell 0.1%. Bangkok’s SET was down 0.3%.
“Concerns about China’s economic outlook combined with the contentious US presidential election weighed on market sentiment,” Stephen Innes of SPI Asset Management said in a commentary.
On Wednesday, the S&P 500 fell 0.9% to 5,797.42. The recent pullback follows a six-week winning streak, the longest of the year.
Stock prices have fallen due to upward pressure on US Treasury yields. Rising yields may make investors reluctant to pay higher prices for stocks, but critics say stocks that have risen faster than corporate profits already look expensive.
The Dow Jones Industrial Average fell 1% to $42,514.95, and the Nasdaq Composite Index fell 1.6% to $18,276.65. Nvidia and other Big Tech stocks were the most heavily weighted in the market.
The 10-year Treasury yield rose again to 4.23% from 4.21% late Tuesday and just 4.08% Friday.
U.S. Treasury yields are rising following numerous reports indicating that the U.S. economy continues to perform better than expected. That’s good news for Wall Street, as it raises hopes that the economy can emerge from the worst inflation in generations without sliding into the painful recession that many feared was inevitable.
McDonald’s fell 5.1% after federal health officials linked its Quarter Pounder burger to an E. coli outbreak that has affected at least 49 people in 10 states. Investigators are still trying to figure out exactly what ingredients were contaminated, and the Centers for Disease Control and Prevention said McDonald’s is investigating raw onion shreds and quarter pound beef patties in several states. announced that it had discontinued its use.
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Coca-Cola fell 2.1% despite reporting that its latest quarter’s profit and sales beat analysts’ expectations.
Boeing fell 1.8% on what could be one of the most significant days for the beleaguered aerospace manufacturer in years.
The company reported a loss of more than $6 billion in its latest quarter. Late Wednesday, Boeing factory workers voted 64% against the company’s latest contract offer, opting to continue a six-week strike that halted production of the aerospace giant’s best-selling jetliner. Boeing stock has fallen nearly 40% this year.
Big tech stocks, whose prices soared amid Wall Street’s frenzy over artificial intelligence technology, were the most heavily weighted in the market. Nvidia fell 2.8% and Apple fell 2.2%.
However, AT&T rose 4.6% after reporting its latest quarterly profit was better than analysts expected, and Texas Instruments rose 4.6% after the semiconductor company reported stronger-than-expected profits and sales. The stock rose 4% as a result.
In other trading early Thursday, benchmark U.S. crude oil rose 79 cents to $71.56 a barrel in electronic trading on the New York Mercantile Exchange.
Brent crude, the international standard crude, rose 75 cents to $75.81 a barrel.
The dollar fell to 152.16 yen after soaring above 153 yen on Wednesday. The euro fell from $1.0783 to $1.0782.
