Asian stocks follow Wall St lower on inflation fears

BEIJING (AP) — Asian stock markets retreated Wednesday as investors looked ahead to U.S. data they worry will show inflation is picking up.

Shanghai, Tokyo, Hong Kong and Southeast Asian markets declined.

Overnight, Wall Street's benchmark S&P 500 index lost 0.9% amid concern inflation might accelerate, hampering an economic recovery and dragging on share prices.

More U.S. inflation were due out Wednesday. Investor concern is increasing following a price rise for industrial materials including copper and crude oil.

“Asian equities traded sideways following a lackluster session on Wall Street, where risk sentiment prevailed amid inflationary concerns,” Anderson Alves of ActivTrades said in a report. This week's data are "essential for investors worldwide as U.S. markets are the primary benchmark for risk assets globally.”

The Shanghai Composite Index lost 0.4% to 3,441.42 and the Nikkei 225 in Tokyo tumbled 2.5% to 27,889.82. The Hang Seng in Hong Kong opened higher but lost 0.4% by midday at 27,910.60.

The Kospi in Seoul fell 1.6% to 3,158.50 and the S&P-ASX 200 in Sydney sank 1.2% to 7,012.30.

India's Sensex opened down 0.9% at 48,722.32. New Zealand and Southeast Asian markets also declined.

On Wall Street, banks and energy companies led a broad pullback Tuesday.

The S&P 500 fell to 4,152.19. The Dow Jones Industrial Average sank 1.4% in its worst day since February. The Nasdaq composite lost 0.1% to 13,389.43.

Commodity prices have been rising, particularly for industrial metals such as copper and platinum, as well as for energy commodities like gasoline and crude oil.

Big technology companies were among the biggest decliners for a second day. Tech stocks get most of their valuation from future profits that might be less valuable if they are eroded by...