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Asian stocks close sharply lower on lingering recession fears

Asian stocks closed sharply lower on Wednesday (28), after a brief recovery the day before, as fears persist that the global trend of monetary tightening triggers a recession.

The Hang Seng index led the movement in Asia today, with a drop of 3.41% in Hong Kong, at 17,250.88 points, while the Nikkei dropped 1.50% in Tokyo, at 26,173.98 points.

South Korean Kospi lost 2.45% in Seoul, at 2,169.29 points, and Taiex was down 2.61% in Taiwan, at 13,466.07 points.

In mainland China, losses were also significant: the Shanghai Composite dropped 1.58% to 3,045.07 points, and the less comprehensive Shenzhen Composite dropped 2.57% to 1,938.26 points.

Global investors remain apprehensive as a number of central banks raise rates to fight the highest rate of inflation in decades.

The Federal Reserve (US BC) has been particularly aggressive and, a week ago, raised its rates by 75 basis points for the third time in a row.

The withdrawal of monetary stimulus, which fuels recession fears, has been putting pressure on New York stock markets since last week and also helping to boost the dollar.

This morning, the Chinese currency – the yuan – reached a historic low against the dollar in the offshore market and the lowest level since February 2008 in the onshore market, despite efforts by the Chinese BC to contain the devaluation of the local currency.

In Oceania, the Australian stock exchange was also in the red today. The S&P/ASX 200 dropped 0.53% in Sydney to 6,462.00 points, its lowest since late June.

Source: CNN Brasil

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