Asian shares followed Wall Street and Europe lower on Friday, with markets jittery over the risk that the Federal Reserve and other central banks may end up bringing on recessions to get inflation under control. Oil prices and U.S. futures edged higher. China’s move to relax COVID restrictions has raised hopes for an end to massive disruptions from lockdowns and other strict measures to prevent infections. But signs of sharply rising case numbers have raised uncertainty, with some alarmed over the possibility that the pandemic will continue to drag on the economy. Hong Kong’s Hang Seng was flat, at 19,369.65 while the Shanghai Composite index shed 0.3% to 3,160.67. Tokyo’s Nikkei 225 lost 1.7% to 27,569.56 after a survey of manufacturers showed a further contraction in output. The Kospi in Seoul edged 0.2% lower to 2,357.97, while Australia’s S&P/ASX 200 declined 0.3% to 7,180.50. Shares in Taiwan fell 1.2% and the SET in Bangkok lost 0.2%. Mumbai dropped 1.4%. On Thursday, the S&P 500 fell 2.5% to 3,895.75, erasing its gains from early in the week. The tech-heavy Nasdaq composite lost 3.2% to 10,810.53 and the Dow gave back 2.2% to 33,202.22. Read more: Global trade growth turns negative after record year: UN The wave of selling came as central banks in Europe raised interest rates a day after the U.S. Federal Reserve hiked its key rate again, emphasizing that interest rates will need to go higher than previously expected in order to tame inflation. European stocks fell sharply, with Germany’s DAX dropping 3.3%. Like the Fed, central bank officials in Europe said inflation is not yet corralled and that more rate hikes are coming. “We are in for a long game,” European Central Bank President Christine Lagarde said at a news conference. Small company stocks also fell. The Russell 2000 index slid 2.5% to close at 1,774.61. The Fed raised its short-term interest rate by half a percentage point on Wednesday, its seventh increase this year. Central banks in Europe followed along Thursday, with the European Central Bank, Bank of England and Swiss National Bank each raising their main lending rate by a half-point Thursday. Although the Fed is slowing the pace of its rate increases, the central bank signaled it expects rates to be higher over the coming few years than it had previously anticipated. That disappointed investors who hoped recent signs that inflation is easing somewhat would persuade the Fed to take some pressure off the brakes it’s applying to the U.S. economy. The federal funds rate stands at a range of 4.25% to 4.5%, the highest level in 15 years. Fed policymakers forecast that the central bank’s rate will reach a range of 5% to 5.25% by the end of 2023. Their forecast doesn’t call for a rate cut before 2024. The yield on the two-year Treasury, which closely tracks expectations for Fed moves, rose to 4.24% from 4.21% late Wednesday. The yield on the 10-year Treasury, which influences mortgage rates, slipped to 3.45% from 3.48%. The three-month Treasury yield slipped to 4.31%, but remains above that of the 10-year Treasury. That’s known as an inversion and considered a strong warning that the economy could be headed for a recession. Read more: Remittance fell in Sep due to exchange rate volatility: Bangladesh Bank The central bank has been fighting to lower inflation at the same time that pockets of the economy, including employment and consumer spending, remain strong. That has made it more difficult to rein in high prices on everything from food to clothing. On Thursday, the government reported that the number of Americans applying for unemployment benefits fell last week, a sign that the labor market remains strong. Meanwhile, another report showed that retail sales fell in November. That pullback followed a sharp rise in spending in October. In other trading Friday, benchmark U.S. crude oil gained 38 cents to $76.49 a barrel in electronic trading on the New York Mercantile Exchange. It lost $1.17 on Thursday to $76.11 per barrel. Brent crude, the pricing basis for international trading, added 49 cents to $81.70 per barrel. The dollar fell to 137.25 Japanese yen from 137.81 yen late Thursday. The euro rose to $1.0651 from $1.0627.  

Asian shares were mostly higher on Friday following a broad rally on Wall Street, but Hong Kong’s benchmark sank more than 2%. Investors appear to have grown more convinced that the Federal Reserve may temper its aggressive interest rate hikes aimed at taming inflation after the Commerce Department reported the U.S. economy contracted at a 0.9% annual pace in the last quarter. That followed a 1.6% year-on-year drop in the first quarter. Investors were cautiously eyeing regional tensions over China’s stance on Taiwan after President Joe Biden and China’s Xi Jinping spoke for more than two hours on Thursday. China left no doubt it blames the U.S. for a deteriorating relationship, but the White House said call’s aim was to “responsibly manage our differences and work together where our interests align.” Hong Kong’s Hang Seng index dropped 2.3% to 20,148.90 and the Shanghai Composite index declined 0.7% to 3,258.86 after China’s leaders acknowledged the struggling economy won’t hit its official 5.5% growth target this year. The announcement after a planning meeting of the ruling Communist Party said Thursday that Beijing will try to prop up sagging consumer demand but will stick to strict anti-COVID-19 tactics that have disrupted manufacturing and trade. It underscores the high cost Xi’s government is willing to incur to stop the virus in a politically sensitive year when he is widely expected to try to extend his term in power. Japan’s benchmark Nikkei 225 lost 0.3% to 27,750.17, while Australia’s S&P/ASX 200 gained 0.8% to 6,947.30. South Korea’s Kospi added 0.4% to 2,446.22. Read: Japan shares rise after election, rest of region declines Japanese government data showed factory output in June jumped 8.9% from the previous month, marking the first rise in three months. The recent easing of pandemic lockdowns in China has helped boost Japanese production. “On the economic data front, easing China’s restrictions also drove a stronger-than-expected June output for Japan, with China’s reopening potentially having a positive knock-on impact across the region as well into the second half of the year,” said Yeap Jun Rong, market strategist at IG in Singapore. A surge in COVID-19 infections to record levels in many parts of Japan has raised concern. But Robert Carnell, regional head of research Asia-Pacific at ING believes that Japan’s second quarter GDP, or gross domestic product, will rebound marginally from the first quarter’s contraction. On Thursday, the S&P 500 rose 1.2% to 4,072.43, while the Dow added 1% to close at 32,529.63. The Nasdaq gained 1.1% to 12,162.59. The Russell 2000 rose 1.3% to 1,873.03. Consecutive quarters of falling GDP are an informal, though not definitive, indicator of what economists call a technical recession. The GDP report signaled weakness across the economy. Consumer spending slowed as Americans bought fewer goods. Business investment fell. Inventories tumbled as businesses slowed their restocking of shelves, shedding 2 percentage points from GDP. The Federal Reserve has made slowing the U.S. economy to tame the highest inflation in 40 years its goal by raising interest rates, most recently on Wednesday. The latest GDP report, along with other recent weak economic data, could be giving some investors confidence that the central bank will be able to ease up on the size of any further rate hikes. In a research note Thursday, Jonathan Golub, chief U.S. equity strategist at Credit Suisse Securities, said “Whether or not we are in a recession will be debated by academics in the months ahead. However, today’s report unequivocally reflects a substantial weakening in economic activity, and raises the likelihood of a dovish pivot by the Fed.” The central bank raised its key short-term interest rate by 0.75 percentage points on Wednesday, lifting it to the highest level since 2018. The move sparked a broad market rally led by technology stocks that helped give the Nasdaq its biggest gain in over two years. The major indexes are now all on pace for a weekly gain, extending Wall Street’s strong July rally. In a busy week of corporate earnings reports investors have focused on what companies are saying about inflation and the impact rising interest rates are having on their business and customers. Technology stocks and retailers, restaurant chains and other companies that rely on direct consumer spending helped lift the S&P 500 Thursday. Microsoft rose 2.9%, Target gained 3.1% and McDonald’s added 1.8% higher.

Asian shares were mixed Friday after another day of gains on Wall Street amid a deluge of news about the economy, interest rates and corporate profits. Tokyo, Shanghai and Hong Kong gained while Sydney and Seoul declined. U.S. futures edged lower while oil prices rose. A preliminary reading on factory activity for Japan showed output and new orders contracting to their worst levels in months. Companies blamed shortages of raw materials and rising costs, but demand may be weakening as the country endures yet another wave of coronavirus outbreaks, economists said. July’s purchasing manager indexes “suggest that the manufacturing sector is slowing as demand weakens, while the latest COVID-19 is starting to hit the service sector,” Marcel Thieliant of Capital Economics said in a commentary. Japan reported its inflation rose at a slower pace in June, with food prices growing 6.5% year-on-year compared to 12.3% in May and the increase in energy costs falling to 16.5% from 20.8%. Core inflation excluding volatile energy and food prices rose to 2.6% from 2.2% the month before. Read: Asia shares rise on optimism about easing COVID restrictions The Bank of Japan has indicated that unlike the Federal Reserve and other central banks, however, it does not intend to raise its minus 0.1% benchmark interest rate to counter the trend given that wages are not rising in tandem with prices, constraining consumer demand. Tokyo’s Nikkei 225 index gained 0.4% to 27,914.66, while the Hang Seng in Hong Kong added 0.3% to 20,624.18. Australia’s S&P/ASX 200 lost less than 0.1% to 6,791.50. In South Korea, the Kospi declined 0.6% to 2,393.14. The Shanghai Composite index edged 0.1% higher to 3,274.15. Much of the focus this week has been on Europe. The European Central Bank opted, as expected, to raise its key interest rate Thursday, ending a yearslong experiment with negative interest rates. It was its first increase in 11 years. A key pipeline carrying Russian natural gas into the region reopened, though at 40% of capacity as worries persisted that Moscow may restrict supplies to punish allies of Ukraine. In Italy, Premier Mario Draghi resigned after his ruling coalition fell apart. That adds more uncertainty as Europe contends with the war in Ukraine, high inflation and the potential for trouble in Europe’s bond markets. On Wall Street, the S&P 500 climbed 1% to 3,998.95 on Thursday, returning to its highest level in six weeks. The Dow rose 0.5% to 32,036.90 and the Nasdaq rose 1.4% to 12,059.61. The Russell 2000 gained 0.5%, at 1,836.69. Stocks briefly lost ground after President Joe Biden tested positive for COVID. The Federal Reserve is set to raise rates next week for a fourth time this year, once again trying to tamp down high inflation without pulling the economy into a recession. Some parts of the U.S. economy already have begun to soften. The number of workers who filed for unemployment benefits last week was the highest in eight months, though it remains relatively low. A separate report released Thursday showed manufacturing in the mid-Atlantic region weakened much more than economists had expected. Strong profits from big U.S. companies have driven gains on Wall Street this week. Tesla climbed 9.8% in the first trading after the electric-vehicle maker reported results for the spring that were better than analysts expected. It was the biggest gainer in the S&P 500. Stocks of energy companies also fell as the price of U.S. crude oil settled 3.5% lower. Early Friday, U.S. benchmark crude oil was up $1.40 at $97.75 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the pricing basis for international trading, advanced $1.31 to $100.79 per barrel. In currency trading, the U.S. dollar bought 137.85 Japanese yen, up from 137.41 late Thursday. The euro slipped to $1.0199 from $1.0230.

Asian shares were mostly lower on Monday, although Japan’s benchmark rallied, welcoming a landslide parliamentary election victory by the ruling Liberal Democratic Party. Concerns about global inflation and interruptions to economic activity brought on by the coronavirus pandemic are adversely affecting investor sentiment. The tide may be shifting as more and more market players focus on the economic outlook, Stephen Innes of SPI Asset Management said in a commentary. “A recession is not the market’s base outlook, but until proven otherwise, investors will debate the depth of the growth hit, not the likelihood of recession; thus, good economic data is good news for stocks,” he said. Japan’s benchmark Nikkei jumped 1.1% in morning trading to 26,803.30. Japan’s governing party and its coalition partner scored a major victory in balloting Sunday, which came two days after the assassination of former Prime Minister Shinzo Abe. Abe was shot by a man emerging from the crowd listening to his campaign speech, took out a homemade gun and fired. The attack shocked a nation that rarely sees gun violence. The Liberal Democratic Party was bound for victory even before the assassination, but some analysts said the shock of Abe’s death was likely to strengthen that trend. With its partner Komeito party, the ruling coalition raised its combined share in the 248-seat upper house to 146. Prime Minister Fumio Kishida almost certainly stands to rule without interruption until a scheduled election in 2025, ensuring that the pro-U.S. defense and diplomatic policies of the late Abe and the Liberal Democrats will continue unchanged. Read: Asia shares rise on optimism about easing COVID restrictions Australia’s S&P/ASX 200 declined 0.6% to 6,638.20. South Korea’s Kospi lost 0.3% to 2,342.82. Hong Kong’s Hang Seng slipped 2.7% to 21,144.53, while the Shanghai Composite fell 1.5% to 3,307.23. Technology shares fell after market regulators in China fined companies for not reporting past transactions as required. Wall Street had a sputtering finish last week, as global markets turned their attention to Chinese economic indicators and moves by central banks, including the U.S. Federal Reserve, to contain stubbornly growing inflation. The hotter the U.S. economy remains, the more likely the Federal Reserve is to continue raising interest rates. A strong hiring report for June assuaged fears that the U.S. economy might be on the cusp of a recession — and highlighted the resilience of the nation’s job market. Yet the figures the government released Friday also spotlighted the sharp divide between the healthy labor market and the rest of the economy: Inflation has soared to 40-year highs, consumers are increasingly gloomy, home sales and manufacturing are weakening and the economy might actually have shrunk for the past six months. The Fed has already hiked its key overnight interest rate three times this year, and the increases have become increasingly aggressive. Last month it raised rates by the sharpest degree since 1994, by three-quarters of a percentage point to a range of 1.50% to 1.75%. It was at virtually zero as recently as March. Other central banks around the world are also raising interest rates and removing emergency plans put in place early in the pandemic to prop up financial markets. On Friday, the S&P 500 dropped 0.1% to 3,899.38, snapping a four-day winning streak. The Dow fell 0.1% to 31,388.15, while the Nasdaq rose 0.1% to 11,635.31. The Russell 2000 index of small company stocks slipped less than 0.1%, to 1,769.36. In energy trading, U.S. benchmark crude lost 79 cents to $104.00 a barrel. It gained $2.06 to $104.79 a barrel on Friday. Brent crude, the international standard, fell 74 cents to $106.28 a barrel. In currency trading, the U.S. dollar gained to 137.03 Japanese yen from 136.10 yen. The euro cost $1.0148, down from $1.0182.

Shares were higher in Asia on Friday, despite data suggesting economies are slowing. The advance tracked gains on Wall Street, where the market is headed for its first weekly gain after three weeks of punishing losses. Tokyo’s Nikkei 225 index added 1.2% to 26,491.97 and the Kospi in Seoul jumped 2.4% to 2,369.16. Hong Kong’s Hang Seng advanced 2% to 21,707.92 and the Shanghai Composite index added 1% to 3,354.63. In Australia, the S&P/ASX 200 gained 0.8% to 6,577.40. Shares also rose in India and Taiwan. U.S. and European futures also were higher. Market players are looking ahead to U.S. inflation data due next week. They appeared to shrug off preliminary data showing a slowing of factory activity in several countries including Japan. The manufacturing manager surveys of “several developed economies came in lower-than-expected in both the manufacturing and services sector, which points to a broad-based moderation in economic activities,” Jun Rong Yeap of IG said in a commentary. A report Friday showed inflation in Japan remained at 2.1% in May, pushed higher by energy costs and a weaker currency. However, underlying core inflation, which excludes volatile costs for energy and fresh foods, remained at 0.8% and the central bank is unlikely to follow the example of the U.S. Federal Reserve and other central banks in raising interest rates, analysts said. Also Read: Asian stock markets higher after Wall St sinks further The Bank of Japan “isn’t convinced that this will be sustainable because wage growth remains soft and higher energy costs are weighing on corporate profits and consumer sentiment,” Marcel Thieliant of Capital Economics said in a report. On Wall Street, trading was wobbly as investors focused on another round of testimony before Congress by Federal Reserve Chair Jerome Powell. He told a House committee the Fed hopes to rein in the worst inflation in four decades without knocking the economy into a recession, but acknowledged “that path has gotten more and more challenging.” The S&P 500 ended 1% higher at 3,795.73 after having been down as much as 0.4%. The Dow Jones Industrial Average rose 0.6% to 30,677.36 and the Nasdaq gained 1.6% to 11,232.19. Smaller company stocks also gained ground. The Russell 2000 rose 1.3% to 1,711.67. Trading has been turbulent in recent weeks as investors try to determine whether a recession is looming. The benchmark S&P 500 is currently in a bear market. That means it has dropped more than 20% from its most recent high, which was in January. The index has fallen for 10 of the last 11 weeks. On Thursday, Powell stressed: “I don’t think that a recession is inevitable.” He has said it’s ”certainly a possibility” and that the central bank is facing a more challenging task amid the war in Ukraine essentially pushing oil and other commodity prices even higher and making inflation even more pervasive. Powell spoke to Congress a week after the Fed raised its benchmark interest rate by three quarters of a percentage point, its biggest hike in nearly three decades. Fed policymakers also forecast a more accelerated pace of rate hikes this year and next than they had predicted three months ago, with its key rate to reach 3.8% by the end of 2023. That would be its highest level in 15 years. The Labor Department reported Thursday that fewer Americans applied for jobless benefits last week, though it was slightly more than economists expected. The solid job market is a relatively bright point in an otherwise weakening economy, with consumer sentiment and retail sales showing increasing damage from inflation. As higher prices stretch pocketbooks, consumers are shifting spending from big ticket items like electronics to necessities. The pressure has been worsened by record-high gasoline prices that show no sign of abating. Big technology and health care companies did much of the heavy lifting. Microsoft rose 2.3% and Johnson & Johnson rose 2.2%. Energy stocks fell as the price of U.S. crude oil dropped 1.8%. Valero fell 7.6%. Early Friday, U.S. benchmark crude oil was up 36 cents at $104.63 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the basis for pricing for international trading, shed 9 cents to $106.55 per barrel. Bond yields fell significantly. The yield on the 10-year Treasury note, which helps set mortgage rates, fell to 3.09% from 3.15% late Wednesday. The U.S. dollar fell to 134.73 Japanese yen from 134.94 yen. The euro rose to $1.0539 from $1.0524.

Asian shares gained Friday as investors cheered a strong set of earnings from retailers that has sent U.S. shares higher. Benchmarks were rising in early trading across the region, including Japan, China, Australia and South Korea. “Improved risk sentiments in Wall Street, along with earnings outperformance from Alibaba and Baidu, may aid to fuel some upside for the Asia region into today’s session,” said Yeap Jun Rong, market strategist at IG in Singapore. Shares of Alibaba and Baidu have surged after they reported better than expected results, easing some concerns about the negative impact from restrictions to curb COVID-19 infections. Both shares continued to rise in early trading. Also Read: Asian stock markets higher after Wall St sinks further Gauging Japan’s economic path will be on investors’ minds as data on manufacturing, housing and employment for April are set to be released next week. Some analysts expect the numbers to be dim because of a slowdown in exports to China during that period. But some optimism is also in the air, with Tokyo’s restrictions on tourists easing and the daily cap raising from 10,000 incoming people to 20,000 starting June 1. The Japanese government, led by Prime Minister Fumio Kishida, is also set to push ahead in parliamentary discussions with a supplementary budget, another possible plus for investors. Japan’s benchmark Nikkei 225 added 0.8% in early trading to 26,811.06. Australia’s S&P/ASX 200 gained 0.9% to 7,167.70. South Korea’s Kospi jumped 1.0% to 2,638.92. Hong Kong’s Hang Seng surged 2.8% to 20,687.39, while the Shanghai Composite edged up 0.6% to 3,141.15. Wall Street ended broadly higher after seven straight weeks of declines, the longest such stretch since 2001. Bond yields rose. The yield on the 10-year Treasury, which helps set interest rates on mortgages, rose to 2.75% from 2.74% late Wednesday. Roughly 90% of the stocks in the S&P 500 rose, with technology companies, banks and retailers driving much of the rally. While trading has remained choppy this week, the market has mostly pushed higher, unlike the past five weeks, when the S&P 500 had a pullback of 2% or more at least one day each week. “It’s nice to see a couple days in the green, and this might actually end up being the first week when we don’t have a humongous down day,” said Liz Young, head of investment strategy at SoFi. “But I wouldn’t declare premature victory and assume we’re in the clear.” The S&P 500 rose 79.11 points, or 2%, to 4,057.84. The Dow added 516.91 points, or 1.6%, to 32,637.19, and the Nasdaq rose 305.91 points, or 2.7%, to 11,740.65. The Russell 2000 index of smaller companies climbed 39.07 points, or 2.2%, to 1,838.24. Retailers led the broader market higher Thursday. Macy’s surged 19.3% after it raised its profit forecast for the year following a strong first-quarter financial report. Dollar General vaulted 13.7% and Dollar Tree jumped 21.9% for the biggest gain in the S&P 500 after the discount retailers reported solid earnings and gave investors encouraging forecasts. The retail sector is being closely watched by investors looking for more details on just how much pain inflation is inflicting on companies and consumers. Weak reports from the several big companies last week, including Target and Walmart, spooked an already volatile market. “We’re not convinced that we’re completely out of the woods here,” said Philip Orlando, chief equity market strategist at Federated Hermes. “There were a lot of negative reports last week and what those companies have talked about is what is going on through the economy.” Inflation is at a four-decade high and businesses have been raising prices on everything from food to clothing to offset higher costs. The impact from Russia’s invasion of Ukraine worsened inflation pressures by fueling higher energy and key food commodity costs. Supply chain problems worsened in the wake of China’s lockdown for several major cities as it tried to contain COVID-19 cases. Consumers have been resilient about spending, but the pressure from inflation remains persistent and could be prompting a pullback or shift in spending from more expensive things to necessities. The broad gains on Thursday followed a late push for markets on Wednesday prompted by details from the Federal Reserve’s latest meeting, which confirmed expectations of more interest rate hikes. Technology stocks also rose. TurboTax maker Intuit rose 4.6%. Companies in the sector, with their lofty stock values, tend to push the market harder up or down. Airline stocks rallied on encouraging summer travel forecasts. Southwest Airlines rose 6% and JetBlue rose 3.4%. In energy trading, U.S. benchmark crude added 36 cents to $114.45 a barrel. U.S. crude oil prices rose 3.4% Thursday, and are up more than 55% for the year. Brent crude, the international standard, rose 45 cents to $117.85 a barrel. In currency trading, the U.S. dollar inched down to 126.79 Japanese yen from 127.10 yen. The euro cost $1.0763, up from $1.0733.

Asian shares declined Monday after U.S. stocks ended last week on a tumble as global markets’ expectations for higher interest rates continued to set the tone. Japan’s benchmark Nikkei 225 lost 1.9% in morning trading to 26,583.70. South Korea’s Kospi slipped 1.6% to 2,661.94. Hong Kong’s Hang Seng dropped 2.8% to 20,064.32, while the Shanghai Composite shed 2.4% to 3,012.93. Trading was closed in Australia for Anzac Day, a national holiday. The news that Emmanuel Macron won the run-off French presidential election over the weekend, clinching a second term as was widely expected, reassured markets that France won’t abruptly shift course in the midst of the war in Ukraine. Read: Asian stocks mixed, oil falls as Russian attacks intensify But a significant show from contender Marine Le Pen, a populist and nationalist, served as a reminder of how fragile that situation might be, analysts said. Le Pen pledged to dilute French ties with the EU, NATO and Germany, and spoke out against EU sanctions on Russian energy supplies. Rising COVID-19 cases in China are setting off worries about more pandemic lockdowns that would crimp economic recoveries in the region. Other nations are also dealing with economic woes related to COVID-19, such as the absence of tourism revenue in Japan, where cases are still going up and down while it gradually opens its borders, but only to business travelers. Investors are also watching profit reports from companies, including Japanese big names that are coming in weeks ahead. Several reports from U.S. companies, which have already been released, have been disappointing, contributing to the fall that ended last week on Wall Street. What the U.S. Federal Reserve might do is high on investors’ minds. The chair of the Federal Reserve has indicated the central bank may hike short-term interest rates by double the usual amount at upcoming meetings, starting in two weeks. The Fed has already raised its key overnight rate once, the first such increase since 2018. The S&P 500 fell 2.8% Friday to 4,271.78, marking its third losing week in a row. The Dow dropped 2.8% to 33,811.40, its biggest drop in 18 months. The Nasdaq lost 2.6%, closing at 12,839.29. The Dow and Nasdaq also posted losses for the week. Read: Upto 50% of hotels, motels booked already for Eid holidays Smaller company stocks also fell sharply. The Russell 2000 slid 2.6% to 1,940.66. “Coming after the heavy sell-off in Wall Street to end last week, overall risk appetite in the region may come under pressure as well,” said Yeap Jun Rong, market strategist at IG in Singapore. Markets around the world are feeling similar pressure on rates and inflation, particularly in Europe as the war in Ukraine pushes up oil, gas and food costs. In energy trading, benchmark U.S. crude lost $2.91 to $99.16 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, fell $2.93 to $103.72 a barrel. In currency trading, the U.S. dollar edged down to 128.51 Japanese yen from 128.59 yen. The euro cost $1.0789, down from $1.0803.

Asian shares were mostly lower and oil prices fell Tuesday after another day of losses on Wall Street as anxiety over the war in Ukraine and an upcoming Federal Reserve meeting on interest rates keep global financial markets on edge. Markets remain jumbled as investors try to gauge various economic impacts from the war in Ukraine, upcoming rate hikes by central banks and new virus lockdowns in China. Tokyo rose while markets in China, Australia and South Korea fell. Stocks have fallen sharply in Hong Kong recently, sinking to near six-year lows after the neighboring city of Shenzhen was ordered into a shutdown to combat China’s worst COVID-19 outbreak in two years. The Hang Seng index lost 2.4% early Tuesday to 19,068.49, while the Shanghai Composite gave up 2.1% to 3,157.14. Also read: Asian shares extend losses as oil prices push higher Tokyo's Nikkei 225 rose 0.3% to 25,385.11, while the Kospi in Seoul gave up 0.6% to 2,630.34. Australia's S&P/ASX 200 slid 0.6% to 7,108.80 and shares also fell in Taiwan and Bangkok. Oil prices have tumbled, taking some pressure off the inflation sweeping the globe, with a barrel of U.S. crude falling below $100 per barrel after touching $130 last week. U.S. crude shed $4.14 to $98.87 per barrel in electronic trading on the New York Mercantile Exchange. It tumbled $6.32 to $103.01 on Monday. Brent crude, the standard for pricing international oils, gave up $3.90 to $103.00 per barrel. Uncertainty about whether the world economy may be heading for a toxic combination of stagnating growth and persistently high inflation has cast recoveries from the pandemic in question as Russia’s invasion of Ukraine caused prices for oil, wheat and other commodities produced in the region to soar. That has brought sharp day-to-day and hour-to-hour reversals across markets, as expectations for worsening inflation rise and fall. “Markets appear to have been trafficking in an odd mix of hope, fear and uncertainty," Mizuho Bank said in a commentary. Also read: Oil prices jump, shares sink as Ukraine conflict deepens On Monday, negotiators from Russia and Ukraine met over video conference for a new round of talks, after the two sides expressed some optimism in the past few days. The talks ended without a breakthrough after several hours. The negotiators took “a technical pause,” Ukrainian presidential aide Mykhailo Podolyak said, and planned to meet again Tuesday. Investors were already uneasy before the war began because central banks around the world are preparing to shut off the stimulus they pumped into the global economy after the pandemic struck. The wide expectation is that the Federal Reserve will raise its key short-term interest rate by a quarter of a percentage point on Wednesday. It would be the first increase since 2018, and it would pull the federal funds rate off its record low of nearly zero. On Monday, the S&P 500 gave up an early gain and closed 0.7% lower, at 4,173.11, while the Dow Jones Industrial Average was essentially unchanged at 32,945.24. The Nasdaq fell 2% to 12,581.22. Small company stocks also fell. The Russell 2000 index slid 1.9% to 1,941.72. The pullback came as the yield on the 10-year Treasury touched its highest level since the summer of 2019. The yield on the 10-year Treasury climbed to 2.16% from 2.00% late Friday after earlier touching its highest level since July 2019. The two-year yield, which moves more on expectations for Fed policy changes, rose to 1.86% from 1.75%. The Fed faces the challenge of raising rates just quickly and high enough to bat down inflation without overdoing it and causing a recession. The war in Ukraine makes the balancing act even more difficult. It’s pushing inflation higher by raising prices for everything from nickel to natural gas. And it’s threatening to pull down on economic growth. In currency dealings, the dollar rose to 118.34 Japanese yen, its highest level in about six years, from 118.18 yen late Monday. The dollar tends to serve as a safe haven in times of crisis, and the prospect of higher interest rates enhances its allure to investors. The weaker yen is a boon to Japanese export manufacturers as it makes their products relatively cheaper and more competitive in overseas markets. Toyota Motor Corp.'s shares gained 2.5% early Tuesday, The euro rose to $1.0979 from $1.0941.

Shares fell in Asia on Tuesday after Wall Street logged its biggest drop in more than a year as markets were jolted by another surge in oil prices. Benchmarks declined in Tokyo, Sydney, Hong Kong, Seoul and Shanghai following a 3% tumble for the S&P 500. The surge in the price of oil past $130 per barrel on Monday was triggered by the possibility the U.S. might bar crude imports from Russia. Oil prices steadied later in the day and were moderately higher early Tuesday. Read:Oil prices jump, shares sink as Ukraine conflict deepens A third round of peace talks between Ukraine and Russia failed to produce major results. A top Ukrainian official said there was minor, unspecified progress toward establishing safe corridors to allow civilians to escape the fighting. But Russian forces continued their shelling as food, water, heat and medicine grew increasingly scarce in Ukraine. Surging prices for oil and other vital commodities are rattling global markets and the situation remains uncertain as investors search for safe havens from expanding sanctions against Russia. Analysts expect the war in Ukraine to top the agenda for some time to come and say the full impact of the conflict is yet to be fully taken into account. “Disruptions to energy markets and the possibility of a geopolitical paradigm shift make for a highly unpredictable environment," Stephen Innes of SPI Asset Management said in a commentary. However, he added, “we should reach a point at which equities start to price in a light at the end of the tunnel." Japan's benchmark Nikkei 225 shed 0.9% to 24,994.98. Australia's S&P/ASX 200 sank 0.2% to 7,023.20. South Korea's Kospi slipped 0.5% to 2,637.61. Hong Kong's Hang Seng lost 0.3% to 20,990.05, while the Shanghai Composite fell 2% to 3,305.83. On Monday on Wall Street, the S&P 500 fell 122.78 points to 4,201.09. The Dow Jones Industrial Average fell 2.4% to 32,817.38. The tech-heavy Nasdaq composite slid 3.6% to 12,830.96 and is now 20.1% below its record set in November. That means the index is in what Wall Street calls a bear market. The S&P 500 is down 12.4% from the peak it set in early January. Gold — a measure of nervousness on Wall Street — also rose, though not by quite as much as when oil prices hit their peak. The price of gold briefly touched $2,007.50 per ounce. Early Tuesday it was at $1,990.00, down 0.3%. Benchmark U.S. crude advanced $1.76 to $121.16 a barrel in electronic trading on the New York Mercantile Exchange. It settled at $119.40 per barrel on Monday, up 3.2%, after earlier touching $130.50. Brent crude, the international pricing standard, added $2.68 to $125.89 a barrel. It had settled at $123.21 per barrel, up 4.3%, after earlier topping $139. Worries are growing that Russia’s invasion of Ukraine will upend already tight supplies of oil. Russia is one of the world’s largest energy producers, and oil prices already were high before the attack because the global economy is demanding more fuel following its coronavirus-caused shutdown. A U.S. ban on imports of Russian oil and other energy products, if taken, would be a major step for the U.S. government, though the White House has said it hopes to limit disruptions to oil markets and limit price jumps at the gasoline pump. Reports also said U.S. officials may be considering easing sanctions against Venezuela. That potentially could free up more crude oil and ease concerns about reduced supplies from Russia. A gallon of regular already costs an average of $4.065 across the country after breaching the $4 barrier on Sunday for the first time since 2008. A month ago, a gallon averaged $3.441, according to AAA. Read:Brent crude up $10, shares sink as Ukraine conflict deepens The war puts extra pressure on central banks around the world, with the U.S. Federal Reserve on course to raise interest rates later this month for the first time since 2018. Higher rates slow the economy, which hopefully will help rein in high inflation. But if the Fed raises rates too quickly, it risks forcing the economy into a recession. “Their reaction to geopolitics can't really be measured, so there's uncertainty around that,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute. Beyond sanctions brought on Russia by governments because of its invasion of Ukraine, companies are also levying their own punishments. The list of companies exiting Russia has grown to include Mastercard, Visa and American Express, as well as Netflix. On Wall Street, shares of Bed Bath & Beyond soared 34.2% to $21.71 after the investment firm of billionaire Ryan Cohen took a nearly 10% stake in the company and recommended big changes. Cohen is the co-founder of Chewy, and he's amassed somewhat of a cult following after he took a stake in GameStop, the struggling video game chain that eventually named him board chairman. Treasury yields climbed, with the 10-year rising to 1.78% from 1.72% late Friday. In currency trading, the U.S. dollar rose to 115.43 Japanese yen from 115.32 yen. The euro cost $1.0868, up from $1.0853.

Asian shares slipped Monday after Western nations moved to tighten sanctions against Russia and President Vladimir Putin escalated tensions by ordering Russian nuclear forces be put on high alert. U.S. futures fell, with the contract for the S&P 500 down 2.5% and that for the Dow industrials 1.6% lower. Tokyo, Hong Kong and Shanghai declined while Sydney was higher. Read:Putin puts nuclear forces on high alert, escalating tensions Russian’s invasion of Ukraine has caused markets to swing wildly, given the potential impact on inflation, energy supplies and other repercussions. The end of the month usually brings a raft of economic data, but for now the conflict is eclipsing other issues. “It’s all about the Russia-Ukraine situation and evolutions in that situation will drive market sentiment and direction," Jeffrey Halley of Oanda said in a commentary. “President Putin will now have to accept that the ‘Western' powers are prepared to accept quite a bit of economic pain now to punish Russia," he said. The Russian ruble has weakened sharply in the past week but was steady early Monday at 83.86 to the dollar. Putin ordered Russian nuclear weapons prepared for increased readiness to launch on Sunday ratcheting up tensions with Europe and the United States in a move that unearthed dormant fears from the Cold War era. Japan joined moves by the U.S. and other western nations to impose sanctions against Russia, including blocking some Russian banks from the SWIFT global payment system. The central bank restrictions target access to the more than $600 billion in reserves that the Kremlin has at its disposal, and are meant to block Russia’s ability to support the ruble as it plunges in value. Sanctions announced earlier have taken its currency to its lowest level against the dollar in history and gave its stock market its worst week on record. Japan's Nikkei 225 index lost 0.4% to 26,366.60 and the Hang Seng in Hong Kong lost 1.4% to 22,445.66. The Shanghai Composite index was 0.1% lower at 3,446.44. The Kospi in Seoul was nearly unchanged at 2,678.17, while in Sydney the S&P/ASX 200 gained 0.4% to 7,023.70. Although Asia is unlikely to suffer direct damage from the war in Ukraine, higher energy prices are an unwelcome burden for oil-importing nations like Japan, especially while they are still struggling to recover from the pandemic. Underscoring the deepening rifts due to the conflict, BP said Sunday it was exiting its 19.75% share in Rosneft, a state-controlled Russian oil and gas company, which it has held since 2013. That stake is currently valued at $14 billion. Read:Ukraine, Russia diplomats to meet on Belarus border Oil prices surged Monday, with U.S. benchmark crude up $4.95, or 5.4%, at $96.54 per barrel. Brent crude gained $4.68 to $98.80 per barrel, up 4.9% and approaching the $100 per barrel level it breached last week. On Friday, the S&P 500 climbed 2.2%, notching its first weekly gain in three weeks to close at 4,384.65. The Dow Jones Industrial Average rose 2.5% to 34,058.75. The Nasdaq composite gained 1.6% to 13,694.62 after swinging between modest gains and losses. The Russell 2000 index rose 2.3%, to 2,040.923. The Ukraine conflict has heaped uncertainty atop other worries over interest rates and inflation. The U.S. Federal Reserve has suggested it will raise short-term interest rates next month by double its usual increase, the first rate increase since 2018. Higher U.S. rates tend to put downward pressure on all kinds of investments, and can have global repercussions. In currency trading, the U.S. dollar inched down to 115.46 Japanese yen from 115.77 yen. The euro was barely changed, at $1.1155, down from $1.1157.