Asian shares were mixed on Thursday as U.S. stocks fell on concerns about rising inflation, leading to a troubling trend. Oil prices edged higher, and U.S. futures remained flat, adding to the uncertainty in the market.
In South Korea, the ruling conservative party suffered a significant defeat in a parliamentary election, causing the Kospi to edge slightly higher. This political blow to President Yoon Suk Yeol resulted in the resignation of Prime Minister Han Duck-soo and several senior presidential advisers.
Meanwhile, Tokyo’s Nikkei 225 and Hong Kong’s Hang Seng both experienced losses, while the Shanghai Composite index and Australia’s S&P/ASX 200 saw gains. Bangkok’s SET and Taiwan’s Taiex also faced declines.
The drop in U.S. stocks was attributed to a report showing higher-than-expected inflation, raising concerns about the Federal Reserve’s interest rate cuts. Treasury yields surged, putting pressure on the stock market and causing prices for bonds and gold to fall.
Investors are now cautious about the possibility of a recession due to high interest rates. Real-estate investment trusts and utility companies were among the biggest losers on Wall Street, with real-estate stocks in the S&P 500 experiencing significant declines.
As companies begin reporting their first-quarter profits, Delta Air Lines delivered better-than-expected results, citing strong demand for flights. However, the airline refrained from raising its profit forecast for the full year, leading to fluctuations in its stock price.
In early trading on Thursday, U.S. benchmark crude oil and Brent crude both saw slight gains. The U.S. dollar weakened against the Japanese yen, which has been impacted by interest rate differentials between Japan and the U.S.
Overall, the market remains uncertain as investors navigate the impact of rising inflation and its implications for interest rates and economic growth.
