Photo/Illutration Currency traders watch monitors near the screens showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Jan. 20, 2022. (AP Photo)

BEIJING--Asian stock markets rose Thursday after China cut interest rates to shore up flagging economic growth and Japan reported a double-digit rise in exports.

Benchmarks in Shanghai, Tokyo, Hong Kong and Seoul advanced.

On Wall Street, the benchmark S&P 500 index fell 1 percent on Wednesday as investors tried to figure out how fast the Federal Reserve will roll back economic stimulus to cool inflation.

The Chinese central bank cut rates on one- and five-year loans after growth in the world’s second-largest economy sank to 4 percent over a year earlier in the latest quarter following a crackdown on surging debt among real estate developers.

“The question remains whether banks will respond by increasing lending,” said Iris Pang of ING in a report. Amid uncertainty about heavily indebted developers, Pang said, “banks will be picky about who they lend to.”

The Shanghai Composite Index rose 0.1 percent to 3,563.11 and the Hang Seng in Hong Kong advanced 1.8 percent to 24,570.06.

The Nikkei 225 in Tokyo gained 0.4 percent to 27,574.43 after December exports rose 17.5 percent over a year earlier. Growth in auto exports accelerated to 17.5 percent from November’s 4.1 percent.

The Kospi in Seoul added less than 0.1 percent to 2,844.72 while Sydney’s S&P ASX 200 lost less than 0.1 percent to 7,329.00. New Zealand and Bangkok declined while Singapore and Jakarta advanced.

On Wall Street, the S&P 500 fell to 4,532.76 after a sell-off in tech stocks. The Dow Jones Industrial Average retreated 1 percent to 35,028.65.

Apple shed 2.1 percent and chipmaker Nvidia fell 3.2 percent. The technology sector of the S&P 500 has fallen more than 8 percent this year.

The Nasdaq composite, dominated by technology stocks, lost 1.1 percent to 14,340.26. The index is 10.7 percent below its Nov. 19 all-time high.

The market “succumbed to renewed fears of inflation/Fed tightening,” Vishnu Varathan of Mizuho Bank said in a report.

Stocks have slid since Fed officials said in mid-December it plans to wind down bond purchases and other stimulus that are boosting share prices would be accelerated due to the spike in U.S. inflation to a four-decade high.

Late Tuesday, investors were pricing in a better than 86 percent probability the Fed will raise short-term rates at its March meeting, according to CME Group. That is up from 47 percent a month ago.

On Wednesday, President Joe Biden called on the Fed to do more to fight inflation.

“Given the strength of our economy, and the pace of recent price increases, it’s important to recalibrate the support that is now necessary,” Biden said at a news conference.

Investors are watching the latest round of corporate earnings for indications inflation might be cutting into profits.

Household and consumer goods company Procter & Gamble rose 3.4 percent after reporting strong financial results. The company said consumers have been willing to pay higher prices for dish detergent, diapers and other products.

In energy markets, benchmark U.S. crude lost 16 cents to $85.64 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, used to price international oils, shed 24 cents to $88.20 per barrel in London.

The dollar edged up to 114.27 yen from Wednesday’s 114.25 yen. The euro advanced to $1.1356 from $1.1351.

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