Asian stocks close lower on global recession fears

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Asian stocks closed lower for the third day in a row on Friday (23), after new interest rate hikes in the US and in several parts of Europe to control persistent inflation reinforced fears about a possible global recession.

In Hong Kong, the Hang Seng stock index fell 1.18% to 17,933.27 points, reaching the lowest level in almost 11 years, while the South Korean Kospi dropped 1.81% in Seoul, to 2,290.00 points, its lowest level since October 2020, and Taiex was down 1.16% in Taiwan to 14,118.38 points.

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In Tokyo, there was no business today due to a national holiday in Japan.

In mainland China, the Shanghai Composite lost 0.66% to 3,088.37 points, and the less comprehensive Shenzhen Composite dropped 1.41% to 1,963.69 points.

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Risk aversion in Asia prevailed amid concerns that the trend of monetary tightening caused by inflationary pressures will eventually send the world economy into recession.

On Wednesday (21), the Federal Reserve (Fed, the US central bank) aggressively raised its interest rates and signaled further increases, in a new attempt to control high inflation in the US. With the same intention, the Central Banks of England (BoE), Switzerland (SNB) and Norway raised interest rates yesterday.

In Oceania, the Australian stock market returned from a holiday, also pressured by the series of interest rate hikes. The S&P/ASX 200 fell 1.87% in Sydney to 6,574.70, its lowest since July 1.

Source: CNN Brasil

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