Asian shares fall amid interest rate, earnings worries

Asian shares declined Monday after U.S. stocks ended last week with a tumble as global markets’ expectations for higher interest rates dominated investor concerns.

Japan’s benchmark Nikkei 225 lost 1.9% to finish at 26,590.78. South Korea’s Kospi slipped 1.6% to 2,661.59. Hong Kong’s Hang Seng dropped 3.3% to 19,954.32, while the Shanghai Composite shed 3.7% to 2,972.62. Trading was closed in Australia for Anzac Day, a national holiday.

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.

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 $3.40 to $98.67 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, fell $3.50 to $103.15 a barrel.

In currency trading, the U.S. dollar edged down to 128.39 Japanese yen from 128.59 yen. The euro cost $1.0735, down from $1.0803.