Asian shares decline following Wall Street’s dip

TOKYO (AP) — Asian shares fell across the board Tuesday, taking their cue from a broad decline on Wall Street that reversed some of the big gains notched last week on hopes for interest rate cuts from the Federal Reserve.

Japan’s benchmark Nikkei 225 dove 1.1% in morning trading to 42,342.28. Australia’s S&P/ASX 200 declined 0.3% to 8,949.40.

South Korea’s Kospi lost 0.8% to 3,184.70 after data showed improved consumer sentiment, strengthening expectations that the central bank won’t move on interest rates. Hong Kong’s Hang Seng shed 0.2% to 25,766.68, while the Shanghai Composite slipped 0.1% to 3,878.24.

On Wall Street, the S&P 500 fell 0.4% Monday, but remains near its all-time high. The Dow Jones Industrial Average closed 0.8% lower after setting a record high on Friday. The Nasdaq composite closed 0.2% lower.

Selling was widespread, with health care stocks among the biggest drags on the market. Pfizer fell 2.9% and Eli Lilly and Co. slid 2.3%.

Gains for several big technology stocks helped temper the market’s losses. Alphabet, Google’s parent company, rose 1.2%. Technology heavyweight Nvidia rose 1%.

Treasury yields rose in the bond market following their big drop on Friday amid expectations that the Fed will cut its benchmark interest rate in September.

The yield on the 10-year Treasury rose to 4.28% from 4.25% late Friday. The two-year Treasury yield rose to 3.73% from 3.70% late Friday.

Wall Street is still overwhelmingly betting that the Fed will cut interest rates at its next meeting in September. Traders see an 84% chance that the central bank will trim its benchmark rate by a quarter of a percentage point, according to data from CME Group.

In the latest news related to the Federal Reserve, President Donald Trump said he’s firing Lisa Cook,a member of the Federal Reserve’s board of governors, amid mortgage fraud allegations, opening a new front in the fight over America’s central bank.

The S&P 500 fell 27.59 points to 6,439.32. The Dow lost 349.27 points to close at 45,282.47. The Nasdaq slid 47.24 points to 21,449.29.

In energy trading, benchmark U.S. crude lost 32 cents to $64.48 a barrel. Brent crude, the international standard, declined 28 cents to $68.52 a barrel.

In currency trading, the U.S. dollar dipped to 147.31 Japanese yen from 147.71 yen. The euro cost $1.1644, up from $1.1623.

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AP Business Writers Damian J. Troise and Alex Veiga contributed. Yuri Kageyama is on Threads https://www.threads.com/@yurikageyama