Asia-Pacific markets traded lower on recession concerns.

Asia-Pacific markets mostly traded lower as recession fears escalated. Disappointing retail sales in the US in November show that inflation affects consumers negatively and raises concerns that the Fed’s rate hikes are pushing the economy into recession.

The Hang Seng index rose partially, while the Shenzhen Component fell in mainland China. The Shanghai Composite Index fell 0.25% as the second day of China’s annual Central Economic Labor Conference reportedly took place behind closed doors.

Hong Kong will release the unemployment rate for the September-November period later.

In Australia, the S&P/ASX 200 fell 0.42 percent. Nikkei 225 led losses in the region, down 1.68 percent, while Topix lost 0.84 percent. Kospi in South Korea also fell 0.28 percent.

The US Department of Commerce has imposed restrictions on Chinese companies for their efforts to use advanced technologies to help modernize the Chinese military. This comes just two months after the Biden administration blocked China’s access to advanced semiconductors.