Asian stocks mixed after Wall St falls on rate hike worries

BEIJING (AP) — Asian stocks were mixed Friday after a Federal Reserve official suggested U.S. interest rates might have to be raised higher than expected to cool inflation.

Shanghai and Hong Kong gained while Tokyo declined. Oil prices gained.

Wall Street's benchmark S&P 500 index lost 0.3% on Thursday after a Fed official indicated the U.S. central bank might need to raise its key lending rate as high as almost double its already elevated level to rein in price increases. Officials warned previously that rates might have to be kept high for an extended period, but traders hoped signs of slowing economic activity might cause the Fed to back off those plans.

Traders worry unusually large rate hikes this year by the Fed and central banks in Europe and Asia to stop inflation that is at multi-decade highs might tip the global economy into recession.

“Fed hawks continued to circle the wagons, repeatedly emphasizing their fight against inflation is far from done,” said Stephen Innes of SPI Asset Management.

The Shanghai Composite Index gained 0.2% to 3,121.42 while the Nikkei 225 in Tokyo lost 0.1% to 27,893.24. The Hang Seng in Hong Kong added 0.7% to 18,179.14.

The Kospi in Seoul was 0.1% higher at 2,445.76 and Sydney's S&P-ASX 200 added 0.2% to 7,151.80.

India's Sensex opened down 0.4% at 61,503.62. New Zealand, Jakarta and Bangkok gained while Singapore declined.

On Wall Street, the S&P 500 declined to 3,946.56. The Dow Jones Industrial Average slipped less than 0.1% to 33,546.32. The Nasdaq composite closed 0.3% lower at 11,144.96.

The major indexes are all headed for weekly losses.

Traders expect the Fed to raise its benchmark lending rate again at its December meeting but by half a percentage point after four straight 0.75 percentage point increases,...