Tokyo
Global shares were mostly lower as investors watched for fresh signs of inflation, including soaring crude oil prices.
European shares declined in early trading. France’s CAC 40 slipped 0.7% in early trading to 6,404.59, while Germany’s DAX dropped 0.9% to 14,309.79. Britain’s FTSE 100 fell 0.7% to 7,543.28.
The future for the Dow industrials edged nearly 0.1% lower to 32,862.00. The S&P 500 future fell nearly 0.1% to 4,111.50.
Benchmarks declined across Asia, except in Tokyo, where a weakening yen sent issues of some Japanese exporters higher. Nintendo Co. issues surged 1.6%, while Honda Motor Co. stocks gained more than 0.6%.
The Japanese yen has recently slid to fresh 20-year lows against the U.S. dollar, a trend the International Monetary Fund and other analysts expect to continue for a while because of higher interest rates in the U.S. and Europe, compared to Japan, where long-term interest rates remain at near-zero.
Nonetheless, the economic recovery remains fragile and subject to down side risks from geo-political risks, eroding real incomes, supply chain constraints and limited fiscal support, said Venkateswaran Lavanya of the Asia & Oceania Treasury Department at Mizuho Bank in Singapore.
The impact of inflation has worsened since Russia’s invasion of Ukraine, which has put more pressure on energy and food prices.
China’s trade has been slowed by weak export demand and curbs imposed to fight outbreaks in Shanghai and other cities. Consumer demand for imports was crushed by rules that confined millions of families to their homes, sometimes for weeks. But most factories, shops and other businesses in Shanghai, Beijing and other cities have been allowed to reopen.
The Federal Reserve is widely expected to raise its key short-term interest rate by half a percentage point at its meeting next week. That would be the second straight increase of double the usual amount by the U.S. central bank, and investors expect a third in July.
