Asian stocks close lower, awaiting further US interest rate hike

Asian stocks close lower, awaiting further US interest rate hike

Asian stocks closed lower on Monday, after another week of robust losses on Wall Street, as investors braced for yet another aggressive rate hike from the Federal Reserve. .

In Hong Kong, the Hang Seng index fell 1.04% to 18,565.97 points, while the South Korean Kospi dropped 1.14% in Seoul, to 2,355.66 points, and the Taiex registered a drop of 0.93%. in Taiwan, at 14,425.68 points. In Tokyo, there was no business today due to a national holiday in Japan.

In mainland China, the tone was similarly negative: the Shanghai Composite dropped 0.35% to 3,115.60 points, and the less comprehensive Shenzhen Composite slipped 0.76% to 1,990.36 points.

The lack of risk appetite in Asia came after the New York stock exchanges racked up losses of up to more than 5% in the last week, on the expectation that the Fed will raise rates by 75 basis points for the third time in a row next Wednesday ( 21), as US inflation remains persistent.

This week, the Bank of Japan (BoJ) also reviews its monetary policy, but the forecast is that its ultra-accommodative stance remains unchanged.

In China, the PBoC cut the 14-day reverse repo (repo) interest rate by 10 basis points to 2.15%, but there is no expectation of a reduction in the country’s key rates, known as LPRs.

Oceania

In Oceania, the Australian stock exchange followed the general bad mood, and the S&P/ASX 200 fell 0.28% in Sydney, at 6,719.90 points.

Source: CNN Brasil