Asian stocks closed lower on Friday as investors braced for yet another aggressive rate hike from the Federal Reserve amid growing concerns about a global recession, and despite Chinese data signaling a recovery in the world’s second-largest economy in August.
Japan’s Nikkei stock index tumbled 1.11% in Tokyo today to 27,567.65 points, while the Hang Seng dropped 0.89% in Hong Kong to 18,761.69 points, the South Korean Kospi dropped 0.79% in Seoul, at 2,382.78 points, and Taiex dropped 0.74% in Taiwan, at 14,561.76 points.
In mainland China, the Shanghai Composite was down 2.30% to 3,126.40 points, and the less comprehensive Shenzhen Composite saw a similar loss of 2.25% to 2,005.60 points.
The bad mood set in after Chinese authorities asked, in a government document, for a reduction in financial services fees, in a gesture that tends to harm brokerages’ income. Among Chinese companies in the sector, shares in East Money Information and BOC International plunged 11% and 6%, respectively.
Risk aversion in Asia is also related to bets that the Fed, as the American central bank is known, will raise interest rates by 75 basis points for the third consecutive time at a monetary policy meeting next week, given the persistence of inflation in US and signs of improvement in other parts of the economy.
The prospect of further monetary tightening caused a new round of losses in New York stock markets yesterday.
In this context, signs of recovery in the Chinese economy remained in the background. In August, both China’s industrial production and retail sales advanced more than the previous month and exceeded expectations, following a series of stimulus from Beijing, including interest rate cuts, which, this month, however, are not expected to repeat.
In Oceania, the Australian stock market followed the negative tone of Asia and Wall Street, and the S&P/ASX 200 fell 1.52% in Sydney, at 6,739.10 points.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.