Asia stocks markets fall over Fed interest rate hikes
Shanghai, China, Aug 29 (EFE).- Shares across Asia’s stock markets slid on Monday after the United States Federal Reserve said it would continue raising interest rates in its bid to cap inflation.
The Hong Kong Stock Exchange closed Monday with losses of 0.73% after Jerome Powell, chairman of the US central bank, on Friday announced the Fed would continue to hike interest rates.
“Reducing inflation is likely to require a sustained period of below-trend growth,” Powell warned.
“While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses,” the Fed chief added.
“Restoring price stability will likely require maintaining a restrictive policy stance for some time,” Powell cautioned at an economic policy symposium held in Wyoming.
The Hang Seng China Enterprises index, which measures the performance of Chinese mainland companies listed on the Hong Kong stock exchange, lost 0.7%.
Japan’s Nikkei 225 index slipped by nearly 3% and the Topix index, which groups the firms with the largest capitalization in the Japanese stock market, declined 2.17%, at 1,936.68 units.
South Korea’s Kospi fell 2.18% to 2,426.89 points, while the Kosdaq technology index fell 22.56 points, or 2.81%, to 779.89 units.EFE