Asian shares mostly fall as rate hikes, China slowdown loom

TOKYO (AP) — Shares fell in most Asian markets on Monday as interest rate hikes and a slowing Chinese economy weighed on investor sentiment.

Oil prices were higher and U.S. futures fell following sharp declines on Wall Street last week.

Benchmarks declined across the region. Jakarta’s benchmark fell 4%.

Market players were awaiting Chinese trade data for April for an indication on how severely restrictions to curb the spread of COVID-19 infections have hurt the economy.

“The global investment community is slowly waking up to the idea we have touted for a long time: That there is a post-COVID-recovery-euphoria ‘hangover,’ coupled with associated inflation and now a European war and fresh inflation impetus as well as the world’s biggest port being closed,” said Clifford Bennett, Chief Economist at ACY Securities.

Japan’s benchmark Nikkei 225 lost 2.2% in morning trading to 26,410.30. South Korea’s Kospi dipped 0.9% to 2,621.24. Australia’s S&P/ASX 200 dropped 1.3% to 7,110.50. The Shanghai Composite was little changed, falling less than 0.1% to 3,001.62. Markets were closed in Hong Kong for a national holiday.

Investors are watching for the outcome of the presidential election in the Philippines, although it remains unclear how economic policies might change. The son of long-ago overthrown Philippine dictator Ferdinand Marcos is the top contender in Monday’s vote, based on most voter-preference surveys.

Apart from concerns about inflation and coronavirus restrictions, the war in Ukraine is still a major cause for uncertainty. More than 60 people were feared dead after a Russian bomb flattened a school being used as a shelter, Ukrainian officials said. Moscow’s forces pressed their attack on defenders inside Mariupol’s steel plant in an apparent race to capture the...