Posted 12/21/2023, 7:51:00 AM
Asian Shares Decline as Wall Street Rally Ends on Earnings Woes; Toyota Recalls Lead to Broader Losses
- Asian shares fell as Wall Street ended its record-setting rally following disappointing earnings and warnings the market had risen too quickly
- Toyota led losses in Japan, falling 4% after recalling 1 million vehicles over airbag defects; its subsidiary Daihatsu suspended shipments over safety testing issues
- Losses on Wall Street were widespread with 95% of S&P 500 companies declining; FedEx fell 12% on weaker than expected results, signaling potentially weaker demand
- However, some positive signs for the U.S. economy with better than expected consumer confidence and home sales in November
- Easing inflation globally raises hopes central banks can pivot from interest rate hikes in 2024, with expectations of a 1.50 percentage point drop in Fed rates