Stock market today: Asian markets sink, with Japan’s Nikkei down 3.5%, as Mideast tensions flare

HONG KONG (AP) — Asian stocks tumbled Friday, with Japan’s Nikkei slumping 3.5% on heavy selling of semiconductor-related shares and other market heavyweights.

Tensions in the Middle East were weighing on sentiment across the region, and U.S. futures were sharply lower.

Oil prices jumped about $3 as the state-run IRNA news agency reported that Iran fired air defense batteries early Friday morning after reports of explosions near the city of Isfahan.

Japan’s benchmark Nikkei 225 plunged 3.51% to 36,742.05.

Semiconductor equipment supplier Lasertec was the largest loser, it lost 9.7% in morning trading. But most other big tech-related shares also dropped. Renesas gave up 7.3%, Tokyo Electron lost 7.8% and Sony Group Corp. declined 3.3%.

Toyota Motor Corp was down 3.7%.

Japan's headline inflation rate in March slowed to 2.7%, while the core-core index, excluding fresh food and energy costs, moderated to 2.9%, marking the first time since November 2022 that the index fell below 3%.

The yen was slightly firmer against the U.S. dollar, with the latter falling to 153.80 Japanese yen from 154.64 yen.

Markets are waiting for the Japanese central bank’s next move after it raised its benchmark interest rate last month for the first time in 17 years, ending a longstanding policy of negative rates meant to boost the economy. But the rate remains near zero.

Elsewhere, Australia’s S&P/ASX 200 dipped 1.7% to 7,512.70. South Korea’s Kospi dropped 2.9% to 2,558.56. Hong Kong’s Hang Seng declined 1.4% to 16,161.24, while the Shanghai Composite edged down 0.1% to 3,071.76.

Overnight on Wall Street, the S&P 500 fell 0.2% to 5,011.12 after flipping between small gains and losses through the day. The drop was slight, but it was still enough to send the index to a fifth straight loss. That’s its longest losing streak since October, and it’s sitting 4.6% below its record set late last month.

The Dow Jones Industrial Average edged up 0.1% to 37,775.38, and the Nasdaq composite slipped 0.5% to 15,601.50.

Equifax dropped 8.5% for one of the market's bigger losses after it reported weaker revenue for the latest quarter than analysts expected. High interest rates are pressuring its mortgage credit inquiry business.

The only stock to fall more in the S&P 500 was Las Vegas Sands, which sank 8.7% even though it reported better results than expected. Analysts said investors may be worried about competition the casino and resort company is facing in Macau, a southern China enclave that is one of the world's biggest gambling havens.

Helping to offset those losses was Elevance Health, which climbed 3.2% after raising its profit forecast for the full year. Genuine Parts jumped 11.2% for the biggest gain in the S&P 500 after the distributor of automotive and industrial replacement parts reported stronger profit than analysts expected. It also raised its range for forecasted profits over the full year.

Stocks have been struggling recently as yields in the bond market charge higher. They’re cranking up the pressure because investors have largely given up on hopes that the Federal Reserve will deliver many cuts to interest rates this year.

Yields climbed a bit higher after more reports on Thursday showed the U.S. economy remains stronger than expected.

One report said fewer workers applied for unemployment benefits last week than economists expected. It’s the latest sign that the job market remains solid despite high interest rates.

Another report on Thursday said growth in manufacturing in the mid-Atlantic region accelerated sharply, when economists were expecting a contraction.

A third report said sales of previously occupied U.S. homes didn't fall by quite as much last month as economists expected.

Similar data, along with a string of reports showing inflation has remained hotter than forecast this year, have pushed top Fed officials to say recently they could hold interest rates high for a while.

That's a letdown after the Fed earlier had signaled three cuts to interest rates could be possible this year. But Fed officials have been adamant they want to be sure inflation is heading down toward their 2% target before lowering the Fed’s main interest rate from its highest level since 2001.

In oil trading, U.S. benchmark crude rose $2.77 to $85.50 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, gained $3.40 to $90.51 per barrel.

The euro dropped to $1.0623 from $1.0644.

A person walks in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm Friday, April 19, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

People walk in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm Friday, April 19, 2024, in Tokyo. Asian markets tumbled Friday, with Japan's benchmark Nikkei 225 down more than 3% on heavy selling of semiconductor-related shares.(AP Photo/Eugene Hoshiko)

A person looks at an electronic stock board showing Japan's Nikkei 225 index at a securities firm Friday, April 19, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A person looks at an electronic stock board showing Japan's Nikkei 225 index at a securities firm Friday, April 19, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A person looks at an electronic stock board showing Japan's Nikkei 225 index at a securities firm Friday, April 19, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A person stands in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm Friday, April 19, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A police officer rides a bicycle past an electronic stock board showing Japan's Nikkei 225 index at a securities firm Friday, April 19, 2024, in Tokyo. Asian markets tumbled Friday, with Japan's benchmark Nikkei 225 down more than 3% on heavy selling of semiconductor-related shares.(AP Photo/Eugene Hoshiko)

The New York Stock Exchange is seen, through a window guard, on Tuesday, April 16, 2024 in New York. Wall Street drifted toward gains as more corporate earnings come in, giving investors a break from fretting about if and when the Federal Reserve might cut interest rates. (AP Photo/Peter Morgan)

People pass the New York Stock Exchange, right, on Wednesday, April 17, 2024 in New York. Global shares are trading mixed after most U.S. stocks slipped on firmer expectations that the Fed is committed to its current rate practices.(AP Photo/Peter Morgan)

FILE - A person looks at an electronic stock board showing Japan's Nikkei 225 index at a securities firm Tuesday, April 16, 2024, in Tokyo. Asian shares advanced on Thursday even after sinking technology stocks sent Wall Street lower in the S&P 500's worse losing streak since the start of the year. (AP Photo/Eugene Hoshiko, File)

HONG KONG (AP) — Asian stocks fell Wednesday with most of the markets in the region closed for a holiday. Meanwhile, U.S. stocks closed out their worst month since September.

Oil prices were lower and U.S. futures were mixed.

Tokyo’s Nikkei 225 index lost 0.4%, down to 38,271.77 after the country’s factory activity experienced a milder shrink in April, as the manufacturing purchasing managers’ index from au Jibun Bank rose to 49.6 in April from 48.2 in March. A PMI reading under 50 represents a contraction, and a reading of 50 indicates no change.

The yen continues to struggle. On Wednesday, the U.S. dollar rose to 157.88 Japanese yen from 157.74 yen.

Australia’s S&P/ASX 200 dipped 1.1% to 7,581.90. Other markets in the region were closed due to the Labor Day holiday.

On Tuesday, the S&P 500 tumbled 1.6% to cement its first losing month in the last six, and ended at 5,035.69. Its momentum slammed into reverse in April — falling as much as 5.5% at one point — after setting a record at the end of March.

The Dow Jones Industrial Average dropped 1.5% to 37,815.92, and the Nasdaq composite lost 2% to 15,657.82.

Stocks began sinking as soon as trading began, after a report showed U.S. workers won bigger gains in wages and benefits than expected during the first three months of the year. While that’s good news for workers and the latest signal of a solid job market, it feeds into worries that upward pressure remains on inflation.

It followed a string of reports this year that have shown inflation remains stubbornly high. That’s caused traders to largely give up on hopes that the Federal Reserve will deliver multiple cuts to interest rates this year. And that in turn has sent Treasury yields jumping in the bond market, which has cranked up the pressure on stocks.

Tuesday’s losses for stocks accelerated at the end of the day as traders made their final moves before closing the books on April, and ahead of an announcement by the Federal Reserve on interest rates scheduled for Wednesday afternoon.

No one expects the Federal Reserve to change its main interest rate at this meeting. But traders are anxious about what Fed Chair Jerome Powell may say about the rest of the year.

GE Healthcare Technologies tumbled 14.3% after it reported weaker results and revenue for the latest quarter than analysts expected. F5 dropped 9.2% despite reporting a better profit than expected.

McDonald’s slipped 0.2% after its profit for the latest quarter came up just shy of analysts’ expectations. It was hurt by weakening sales trends at its franchised stores overseas, in part by boycotts from Muslim-majority markets over the company’s perceived support of Israel.

Helping to keep the market’s losses in check was 3M, which rose 4.7% after reporting stronger results and revenue than forecast. Eli Lilly climbed 6% after turning in a better profit than expected on strong sales of its Mounjaro and Zepbound drugs for diabetes and obesity. It also raised its forecasts for revenue and profit for the full year.

Stocks of cannabis companies also soared after The Associated Press reported the U.S. Drug Enforcement Administration will move to reclassify marijuana as a less-dangerous drug in a historic shift. Cannabis producer Tilray Brands jumped 39.5%.

The earnings reporting season has largely been better than expected so far. Not only have the tech companies that dominate Wall Street done well, so have companies across a range of industries.

In the bond market, the yield on the 10-year Treasury rose to 4.69% Wednesday from 4.61%.

Benchmark U.S. crude fell 75 cents to $81.18 a barrel. Brent crude, the international standard, lost 65 cents to $85.68 a barrel.

In currency trading, the euro cost $1.0655, down from $1.0663.

FILE - A person walks in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm in Tokyo, on April 22, 2024. Asian stocks fell Wednesday, May 1, 2024 with most of the markets in the region closed for a holiday. Meanwhile, U.S. stocks closed out their worst month since September. (AP Photo/Eugene Hoshiko, File)

FILE- A person looks at an electronic stock board showing Japan's stock prices at a securities firm in Tokyo, on April 30, 2024. Asian stocks fell Wednesday, May 1, 2024 with most of the markets in the region closed for a holiday. Meanwhile, U.S. stocks closed out their worst month since September. (AP Photo/Eugene Hoshiko, File)