Stock market today: Asian shares mostly fall on worries about Trump's tariffs

TOKYO (AP) — Asian shares mostly declined on Tuesday as worries spread over President-elect Donald Trump's comment that he plans to impose sweeping new tariffs on Mexico, Canada and China as soon as he takes office.

Japan's benchmark Nikkei 225 dropped 0.9% to 38,442.00. Australia's S&P/ASX 200 lost 0.7% to 8,359.40. South Korea's Kospi dipped 0.6% to 2,520.36. Hong Kong's Hang Seng was little changed, inching up less than 0.1% to 19,158.76, while the Shanghai Composite gained 0.1% to 3,261.12.

On Monday, stocks rose on Wall Street, with companies likely to benefit the most from lower interest rates and a stronger economy leading the way. The S&P 500 climbed 0.3% to 5,987.37, pulling closer to its all-time high set two weeks ago. The Dow Jones Industrial Average added 1% to its own record set on Friday, closing at 44,736.57, while the Nasdaq composite rose 0.3% to 19,054.84.

Treasury yields eased in what some analysts called a “Bessent bounce” after Trump said he wants Scott Bessent, a hedge fund manager, to be his Treasury Secretary.

Bessent has argued for reducing the U.S. government’s deficit, which is how much more it spends than it takes in through taxes and other revenue. Such an approach could soothe worries on Wall Street that Trump’s policies may lead to a much bigger deficit, which in turn would put upward pressure on Treasury yields and drive prices lower.

After climbing above 4.44% immediately after Trump’s election, the yield on the 10-year Treasury fell back to 4.26% Monday, down from 4.41% late Friday. That’s a notable move, and lower yields make it cheaper for all kinds of companies and households to borrow money. They also give a boost to prices for stocks and other investments.

The Russell 2000 index of smaller stocks jumped 1.5%. It finished just shy of its all-time high, which was set three years ago. Smaller companies can feel bigger boosts from lower borrowing costs because of the need for many to borrow to grow.

The two-year Treasury yield, which more closely tracks the market’s expectations for what the Federal Reserve will do with overnight interest rates, also eased sharply.

The Fed began cutting its main interest rate just a couple months ago from a two-decade high, hoping to keep the job market humming after bringing inflation nearly all the way down to its 2% target. But immediately after Trump’s victory, traders had reduced bets for how many cuts the Fed may deliver next year. They were worried Trump’s preference for lower tax rates and higher spending on the border would balloon the national debt.

A report coming on Wednesday could influence how much the Fed may cut rates. Economists expect it to show that an underlying inflation trend the Fed prefers to use accelerated to 2.8% last month from 2.7% in September. Higher inflation would make the Fed more reluctant to cut rates as deeply or as quickly as it would otherwise.

In the stock market, Bath & Body Works jumped 16.5% after delivering stronger profit for the latest quarter than analysts expected. The seller of personal care products and home fragrances also raised its financial forecasts for the full year.

Much focus has been on how resilient U.S. shoppers can remain, given high prices across the economy and still-high interest rates.

Another big retailer, Macy’s, said Monday its sales for the latest quarter were in line with its expectations, but it will delay the release of its full financial results. It found a single employee had intentionally hid up to $154 million in delivery expenses, and it needs more time to complete its investigation. Macy’s stock fell 2.2%.

In other dealings early Tuesday, benchmark U.S. crude added 25 cents to $69.19 a barrel. Brent crude, the international standard, added 25 cents to $73.26 a barrel.

In currency trading, the U.S. dollar slipped to 153.87 Japanese yen from 154.20 yen. The euro cost $1.0478, down from $1.0495.

FILE - People work on the New York Stock Exchange trading floor in New York on November 21, 2024. (AP Photo/Ted Shaffrey, File)

People walk in front of an electronic stock board showing Japan's Nikkei index at a securities firm Tuesday, Nov. 26, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

People walk in front of an electronic stock board showing Japan's Nikkei index at a securities firm Tuesday, Nov. 26, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A person walks in front of the Tokyo Stock Exchange building at a securities firm Tuesday, Nov. 26, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Tuesday, Nov. 26, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Tuesday, Nov. 26, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A person walks in front of an electronic stock board showing part of Japan's Nikkei index at a securities firm Tuesday, Nov. 26, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

INGLEWOOD, Calif. (AP) — Although three years of injury problems ruined J.K. Dobbins' once-promising tenure with the Ravens, he was off to a strong start Monday night in his reunion game against Baltimore.

And then another injury ended yet another night early for the Los Angeles Chargers' star-crossed new running back.

Dobbins hurt his knee late in the first half and didn't return to the Chargers' 30-23 loss to the Ravens. Los Angeles coach Jim Harbaugh didn't know the severity of the injury after the game, but the ball-carrier who began the night third in the AFC in yards rushing must fight back from yet another setback to his promising career.

“I thought we did a good job running the ball in the first half,” Chargers quarterback Justin Herbert said. “Obviously I’m hoping J.K. is OK.”

Dobbins had 40 yards on his first six carries against Baltimore, showing off the elusiveness and speed that have revitalized his career this year in Los Angeles.

But Dobbins got hurt about five minutes before halftime when he was wrenched backward by linebacker Malik Harrison and then gang-tackled by Baltimore on a play erased by a holding penalty against the Chargers.

Dobbins grabbed his knee after getting up, and he eventually went to the Bolts' locker room. He was ruled out for the night in the second half.

“I don’t have any update,” Harbaugh said. “I know it’s a knee.”

Although backup Gus Edwards stepped in for Dobbins — just as he did in Baltimore when they were teammates with the Ravens — he managed only 11 yards on nine carries. The Chargers struggled to move the ball in Dobbins' absence, managing just two field goals on their next five drives before tacking on a late touchdown in the loss that snapped their four-game winning streak.

Los Angeles finished with just 83 yards on the ground after entering the weekend with the NFL's 12th-ranked rushing offense.

The Chargers have remarkably few standout offensive playmakers for a seven-win team, and a prolonged absence for Dobbins would severely test their ability to keep up with other elite AFC offenses.

Dobbins is vital as perhaps the most proven skill-position player helping Herbert, who lost receivers Keenan Allen and Mike Williams and running back Austin Ekeler in the offseason.

The Ravens drafted Dobbins in the second round in 2020 out of Ohio State, envisioning him as the next workhorse back in an offense with a history of strong rushers. But after Dobbins rushed for 805 yards in 15 games as a rookie, he played in just nine games over the next three seasons.

Dobbins tore a knee ligament in the preseason in 2021, sidelining him for the year and the first two weeks of the 2022 season. He promptly injured his knee again and missed two months, limiting him to eight games in 2022.

Dobbins then tore his Achilles tendon in the Ravens’ 2023 season opener, ending another season after only eight carries.

He signed a one-year deal with the Chargers during the offseason as a chance to prove he could still compete in the NFL — and he has been outstanding with mostly good health on the West Coast.

Dobbins entered Monday night with 726 yards rushing on 4.8 yards per carry, and he hasn’t missed a game this season. He is clearly a candidate for Comeback Player of the Year after his struggles in Baltimore.

Herbert fought to keep Los Angeles in contention during the second half, but his remaining targets couldn't make the difference. Receiver Quentin Johnson had a particularly rough night, with no receptions on five targets — including three very catchable balls that would have resulted in significant gains.

“He’s done an incredible job all year, and you never want to see that,” Herbert said. “Just like when I throw an interception or when I miss a throw, he’s going to come up to me and tell me, ‘Hey, it’s the next play.’ And that’s the way it is. Everyone in that locker room is professionals, and Q will do a great job. I can give him better placement, better balls. It’s on all of us. It’s not just on him.

Johnston had improved from his difficult rookie season this fall, catching six touchdown passes among his modest 22 receptions. But Los Angeles clearly needs more from its 2023 first-round draft pick, and Johnston knows it.

“You kind of just learn not to dwell on it too much, and just try to put it past me as much as I can,” Johnston said. “Obviously I want to have catches back, but I can't. So I can't do anything but just learn from it. ... I know I've got to get better.”

AP NFL: https://apnews.com/hub/nfl

Los Angeles Chargers running back J.K. Dobbins (27) runs past Baltimore Ravens safety Kyle Hamilton (14) during the first half of an NFL football game Monday, Nov. 25, 2024, in Inglewood, Calif. (AP Photo/Eric Thayer)

Los Angeles Chargers running back J.K. Dobbins (27) is tackled by Baltimore Ravens linebacker Malik Harrison (40) during the first half of an NFL football game Monday, Nov. 25, 2024, in Inglewood, Calif. (AP Photo/Eric Thayer)

Los Angeles Chargers running back J.K. Dobbins (27) is tackled by Baltimore Ravens linebacker Malik Harrison (40) during the first half of an NFL football game Monday, Nov. 25, 2024, in Inglewood, Calif. (AP Photo/Eric Thayer)

Los Angeles Chargers running back J.K. Dobbins (27) carries during the first half of an NFL football game against the Baltimore Ravens, Monday, Nov. 25, 2024, in Inglewood, Calif. (AP Photo/Eric Thayer)