Asian stocks mostly lower as inflation worries cloud outlook

MANILA, Philippines — Asian stocks, including the Philippines, were mostly lower yesterday as worries over inflation tempered optimism over President Joe Biden’s remark that he was considering reducing US tariffs on Chinese imports.

Benchmarks fell in Tokyo, Seoul, Shanghai and Hong Kong.

Likewise, the Philippine Stock Exchange Composite index (PSEi), the benchmark gauge, retreated by 110.40 points or 1.65 percent to close at  6,577.45,   while the broader All Shares index slipped to 3a,550.40, down 40.81 points or 1.14 percent.

Biden, who announced a new economic and trade initiative with the region while  on a visit to Japan, confirmed to reporters that he planned to discuss the issue of punitive tariffs imposed on China during former president Donald Trump’s administration with Treasury Secretary Janet Yellen once he returns to Washington.

“I’m talking with the secretary when I get home. We are considering it,” Biden said.

The comments raised optimism over the potential for an easing of tensions between the world’s two biggest economies, but not all were convinced.

“Talks of reducing tariffs on China’s exports have surfaced before and the lack of any concrete follow-through remains an element of disappointment for markets,” said Yeap Jun Rong, market strategist at IG in Singapore.

Investors are keeping an eye on the impact of the war in Ukraine on commodity prices and the possible blow to global economic growth from pandemic lockdowns in China.

“Russia’s invasion of Ukraine, a wave of COVID-19 infections and lockdowns in mainland China, relentless inflation, and tightening financial conditions have disrupted production and stifled demand, causing the global economy to stall,” said Sara Johnson, an executive director at S&P Global Market Intelligence.

Wall Street had an upbeat start to the week after seven weeks of declines that have nearly ended the bull market that began in March 2020.