HONG KONG (AP) – European markets opened lower on Friday, Asian stocks fell and Japan’s Nikkei average fell 2.7%, with selling concentrated in semiconductor stocks and other market heavyweights.
Tensions in the Middle East weighed on market sentiment, with the S&P 500 index down 0.6% and the Dow Jones Industrial Average down 0.5%.
Oil prices rose early Friday after the state-run IRNA news agency reported that Iran launched an air defense battery and there were reports of explosions near the city of Isfahan. But by early morning European time, they had given up most of their gains.
Germany’s DAX fell 1.1% to 17,647.83, while Paris’ CAC40 index fell 0.8% to 7,957.40. In London, the FTSE 100 index fell 0.6% to 7,833.74.
Japan’s benchmark Nikkei Stock Average fell 2.7% to 37,068.35 yen, smoothing losses from a 3.5% drop in early trading.
Semiconductor equipment supplier Lasertec posted the largest loss, down 8.4%. But most other major tech stocks also fell. Renesas fell 6%, Tokyo Electron fell 8.7% and Sony Group fell 1.8%.
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Toyota Motor Corporation fell 2.2%.
Japan’s headline inflation rate slowed to 2.7% in March, but the core-core index, which excludes fresh food and energy costs, slowed to 2.9%, falling below 3% for the first time since November 2022, according to a government report. Ta.
The yen rose slightly against the US dollar, falling from 154.64 yen to 154.47 yen.
After Japan’s central bank last month raised its benchmark interest rate for the first time in 17 years, ending years of negative interest rate policy aimed at stimulating the economy, markets are watching to see what the bank will do next. However, that percentage is still close to zero.
Elsewhere, Australia’s S&P/ASX 200 index fell 1% to 7,567.30. South Korea’s Kospi fell 1.6% to 2,591.86. Hong Kong’s Hang Seng Index fell 0.9% to 16,231.40, and the Shanghai Composite Index fell 0.3% to 3,065.26. Taiwan’s Tyex fell 3.8%, and Taiwan Semiconductor Manufacturing shares also fell 6.7%.
Overnight on Wall Street, the S&P 500 index fell 0.2% to 5,011.12, after a series of small gains and losses throughout the day. Although the decline was small, it was still enough to snap the index to its fifth consecutive loss. This is the longest losing streak since October and is 4.6% below the record set late last month.
The Dow Jones Industrial Average rose 0.1% to $37,775.38, and the Nasdaq Composite Index fell 0.5% to $15,601.50.
Stocks have struggled recently as bond market yields have risen. The pressure has increased as investors have largely given up hope that the U.S. Federal Reserve will cut interest rates significantly this year.
Yields rose slightly on Thursday after a flurry of reports suggested the U.S. economy remained stronger than expected.
Fewer workers applied for unemployment benefits last week than economists expected, according to a report, the latest sign that the job market is strong despite high interest rates.
A separate report Thursday said manufacturing growth in the mid-Atlantic region accelerated sharply, even though economists had expected a contraction.
Fed officials recently said they may keep interest rates high for some time after similar data and a series of reports showing that inflation this year remains higher than expected. ing.
This was a disappointment after the Fed had earlier indicated it could cut interest rates three times this year. But Fed officials insist they want to see inflation falling toward their 2% target before lowering the central bank’s key interest rate from its highest level since 2001.
In oil trading, benchmark U.S. crude oil rose 11 cents to $82.22 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard crude, rose 7 cents to $87.18 per barrel.
The euro rose to $1.0654 from $1.0644.
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