Stock market today: Asian stocks rise after Wall St retreats on concern economy weakening

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A pedestrian passes by the electronic screen of the Hong Kong Stock Exchange in Hong Kong, Tuesday, June 6, 2023. Asian stock markets rose Tuesday after Wall Street fell on concern the U.S. economy may be weakening following a report that showed growth in service industries slowing.(AP Photo/Louise Delmotte)

Asian stock markets rose Tuesday after Wall Street fell on concern the U.S. economy may be weakening following a report that showed growth in service industries slowing.

Shanghai, Tokyo and Hong Kong rose. Sydney retreated. Oil prices declined.

Wall Street's benchmark S&P 500 index lost 0.2% on Monday after an industry group's index of activity in construction, hospitality and other services fell to a three-year low in May. That conflicted with hopes raised by data last week that showed unexpectedly strong hiring in May, suggesting a potential U.S. recession brought on by interest rate hikes might be farther away.

“Weakness is emerging and that should be more noticeable in the coming months,” said Edward Moya of Oanda in a report.

The Shanghai Composite Index rose 0.2% to 3,237.89 and the Hang Seng in Hong Kong advanced 1.1% to 19,310.53.

The Nikkei 225 in Tokyo gained 0.4% to 32,350.58 after government data showed Japanese wages rose 1% over a year earlier in April but growth decelerated from the previous month's 1.3%.

The S&P ASX 200 in Sydney shed 0.5% to 7,181.90. South Korean markets were closed for a holiday.

New Zealand declined while Southeast Asian markets advanced.

On Wall Street, the S&P 500 declined to 4,273.79 after the Institute for Supply Management reported its service industry index declined to 50.3 from April's 51.9 on a 100-point scale on which numbers above 50 show activity increasing.

The Dow Jones Industrial Average fell 0.6% to 33,562.86. The Nasdaq composite slipped 11.34, or 0.1%, to 13,229.43.

The majority of stocks sank after a weekslong rally carried Wall Street to an 10-month high.

Apple fell 0.8% after unveiling a long-rumored headset that will place its users between the virtual and real world. It will cost $3,500 when it is released early next year.

Traders are worried rate hikes by the Federal Reserve and central banks in Europe and Asia to cool inflation that was at multidecade highs will push the global economy into a recession. They hope signs of slowing U.S. activity will prompt the Fed to postpone or scale back a possible additional rate increase at its meeting this month.

The U.S. government is due to release an update on inflation next week ahead of the Fed meeting.

Even if the Fed puts off a rate hike this month, Wall Street is betting on another increase in July after officials examine more data.

High interest rates led to three high-profile U.S. bank failures and one in Switzerland that rattled financial markets. Manufacturing also has been weakening.

Last week's data showed that U.S. employers unexpectedly accelerated hiring in May, while increases in workers' wages slowed.

That helped propel Wall Street to the brink of a “bull market,” or an increase of 20% in the S&P 500 over its mid-October low.

In energy markets, benchmark U.S. crude lost 39 cents to $71.86 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 41 cents to $72.15 on Monday. Brent crude, the price basis for international oil trading, sank 24 cents to $76.47 per barrel in London. It advanced 58 cents the previous session to $76.71.

The dollar fell to 139.49 yen from Monday's 139.63 yen. The euro was little-changed at $1.0716.