Asian shares fall as investors await US inflation update

TOKYO (AP) — Asian shares mostly fell Tuesday after a slump on Wall Street erased recent gains. U.S. futures and oil prices also declined.

Investors are on the lookout this week for updates on inflation and corporate profits, while renewed coronavirus outbreaks are adding to jitters. Shares fell in Tokyo, Seoul, Hong Kong and Shanghai but rose in Sydney.

The euro cost $1.0011, down from $1.0042, having dipped as low as $1.0005. The U.S. dollar inched down to 137.39 Japanese yen from 137.47 yen.

Both currencies have been trading at 20-year lows as the dollar has surged along with U.S. interest rates, which promise higher returns for investors.

The European common currency is close to dropping below parity, or one-to-one with the dollar. The last time the euro was below $1 was on July 15, 2002.

In share trading, Japan’s benchmark Nikkei dropped 1.8% to 26,336.66. Australia’s S&P/ASX 200 gained nearly 0.1% to 6,606.30. South Korea’s Kospi slipped 1.0% to 2,317.76. Hong Kong’s Hang Seng sank 1.3% to 20,854.76, while the Shanghai Composite index shed 1% to 3,281.47 on growing concerns over COVID-19.

Adding to the pessimism, Hong Kong authorities announced they are considering implementing an electronic health code system to restrict movements of people infected with COVID-19, as well as overseas arrivals, a system similar to what's already in place in mainland China.

The highest inflation in four decades is pushing the Federal Reserve and other central banks to hike interest rates, which puts the clamps on the economy and hurts various types of investments.

On Wall Street, the S&P 500 dropped 1.2% to 3,854.43, giving up most gains from the previous week. The Dow Industrial Average dipped 0.5% to 31,173.84, while the Nasdaq composite fell 2.3% to 11,372.60.

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