Asian stocks follow Wall St lower on economy fears

BEIJING (AP) — Asian stock markets followed Wall Street lower Friday on fears global economic activity will be depressed by interest rate hikes to cool inflation.

Shanghai, Tokyo and Sydney fell while Hong Kong advanced. Oil prices edged lower but stayed above $115 per barrel.

Wall Street's benchmark S&P 500 index tumbled 3.3% on Thursday after Britain's central bank followed the Federal Reserve in raising its key interest rate to cool surging prices. Central banks in Switzerland and Taiwan also raised rates.

Investors worry the moves to control inflation that is running at four-decade highs might tip the U.S. and other major economies into recession.

“Pain is being inflicted almost everywhere and sharing doesn’t make it better in any way,” said Tan Boon Heng of Mizuho Bank in a report.

Markets were not assuaged by comments by President Joe Biden to The Associated Press on Thursday that he saw reasons for optimism about the economy.

A recession is “not inevitable,” Biden said.

The Shanghai Composite Index lost 0.4% to 3,270.52 and the Nikkei 225 in Tokyo fell 2.2% to 25,858.50. The Hang Seng in Hong Kong gained 0.4% to 20,924.49.

The Kospi in Seoul retreated 1.1% to 2,425.30 and Sydney's S&P-ASX 200 tumbled 2.2% to 6,447.30.

India's Sensex opened down 0.4% at 3,086.74. New Zealand and Southeast Asian markets declined.

On Wall Street, the S&P 500 retreated to 3,666.77 for its sixth decline in the past seven trading sessions. All but 3% of stocks in the index fell.

The benchmark gave up its 1.5% gain of the previous day after the Fed announced a rate hike of 0.75 percentage points, three times is usual margin. Chair Jerome Powell said Wednesday the Fed is “not trying to induce a recession now."

The S&P...