Asian benchmarks mostly lower after tepid Wall St session

TOKYO (AP) — Asian shares were mostly lower Wednesday after tepid trading on Wall Street amid worries about a global recession.

Major benchmarks fell across Asia. Oil prices recouped some lost ground. Analysts said markets were focusing on a variety of risks, including inflation, oil prices, moves by the U.S. Federal Reserve and other central banks on interest rates, political developments in Britain and worries over COVID-19.

But the basic mood appeared to be wait-and-see.

Wall Street had a weak opening after markets were closed Monday for the Independence Day holiday. The price of U.S. crude oil sank $8.93, eventually settling below $100 a barrel for the first time since early May.

On Wednesday, U.S. benchmark crude oil was up 42 cents at $99.92 per barrel. Brent crude, the international standard, gained 97 cents to $103.74 per barrel.

Market volatility reflects growing worries among investors that economies are slowing under the weight of surging inflation and sharply higher interest rates, pressures that could tip them into recession.

“Although China has had another wave of COVID, nothing new or market-related seemed to justify the severity of the move,” said Stephen Innes, managing partner at SPI Asset Management about the oil prices.

Japan's benchmark Nikkei 225 lost 1.1% in afternoon trading to 26,134.71. Australia's S&P/ASX 200 slipped 0.5% to 6,594.50. South Korea's Kospi shed 1.9% to 2,297.02. Hong Kong's Hang Seng dropped 2.4% to 21,333.26 while the Shanghai Composite slid 1.9% to 3,337.88.

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