Global stocks lower, except for Tokyo, on Yellen speech

A man walks by an electronic stock board of a securities firm in Tokyo, Monday, Aug. 29, 2016. Most Asian stocks slipped Monday on remarks from the U.S. Federal Reserve late last week that the case has strengthened for raising interest rates, but the Tokyo market was an exception and gained on prospects for a strong dollar. (AP Photo/Koji Sasahara)
A woman takes a picture of an electronic stock board of a securities firm in Tokyo, Monday, Aug. 29, 2016. Most Asian stocks slipped Monday on remarks from the U.S. Federal Reserve late last week that the case has strengthened for raising interest rates, but the Tokyo market was an exception and gained on prospects for a strong dollar. (AP Photo/Koji Sasahara)

TOKYO — Most global stocks slipped Monday after the head of the U.S. Federal Reserve late last week said the case had strengthened for raising interest rates. The Tokyo market was an exception and gained on prospects for a strong dollar.

KEEPING SCORE: France's CAC 40 lost 0.9 percent to 4,401, while Germany's DAX fell 0.7 percent to 10,513. The London Stock Exchange was closed for a summer bank holiday. U.S. shares were set for a modest open, with Dow and S&P 500 futures unchanged.

FED FACTOR: Fed Chair Janet Yellen made comments Friday that were bullish on the economy but gave no timetable for future rate increases. That increased speculation that an interest rate increase is more likely this year. Low interest rates in recent years are credited for helping stock markets hit record highs, so the prospect of higher rates set off worries among some investors.

THE QUOTE: "The dollar jumped after the Federal Reserve's chairperson, Janet Yellen, signaled an impending rate hike in a speech at Jackson Hole last Friday," said Margaret Yang Yan, market analyst at CMC Markets Singapore. "While the rate hike has not yet happened, markets have already begun to move and shift with the assumption of a hike."

ASIA'S DAY: Japan's benchmark Nikkei 225 added 2.3 percent to close at 16,737.49. Japanese stocks generally gain on a weak yen because the earnings of the nation's giant exporters are boosted. South Korea's Kospi fell 0.3 percent to 2,032.35. Hong Kong's Hang Seng slipped 0.4 percent to 22,821.74, while the Shanghai Composite inched down 0.01 percent to 3,070.03.

ENERGY: Benchmark U.S. crude oil fell 64 cents to $47.00. It had risen 31 cents on Friday. Brent crude, used to price oil internationally, lost 69 cents to $49.23.

CURRENCIES: As currencies tend to rise as interest rates increase, the dollar jumped on Yellen's comments. It rose to 102.21 yen from 100.51 late last week in Asia. The euro fell to $1.1177 from $1.1289.

___

Follow Yuri Kageyama on Twitter at https://twitter.com/yurikageyama

Her work can be found at http://bigstory.ap.org/content/yuri-kageyama

People also read these

UK lawmakers urge social media companies to...

Aug 25, 2016

British lawmakers are demanding that social media giants do more to tackle sites that promote...

Asian stocks mostly rise on hopes for higher US...

Aug 30, 2016

Asian shares were mostly higher Tuesday as speculation continued about a U.S. Federal Reserve...

Global stocks rise as investors weigh future of...

Aug 30, 2016

Global stock markets mostly rose on Tuesday as investors weighed the possibility and timing of...

Global stocks mixed in listless trade ahead of US...

Aug 31, 2016

Global stocks are mixed Wednesday in listless trading ahead of jobs data later this week and...

Apple says several billion dollars set aside for...

Sep 1, 2016

Apple's chief executive says the company has put aside "several billion dollars" to pay tax...

About Us

Frontal Report is an emerging leader in all forms of media. We aim to be the leading news brand for readers around the world.

Contact us: sales[at]frontalreport.com

Subscribe Now!