Asian stocks mostly close lower after Powell hints at interest rate hikes

Stock markets in Asia and the Pacific closed mostly lower on Wednesday (8), after the chairman of the Federal Reserve (Fed, the US central bank), Jerome Powell, signaled a more aggressive escalation of US basic interest rates.

Leading the losses in Asia, the Hang Seng index fell by 2.35% in Hong Kong, to 20,051.25 points, while the Chinese Shanghai Composite showed a marginal loss of 0.06%, to 3,283.25 points, the South- Korean Kospi fell 1.28% in Seoul, at 2,431.91 points, and the Taiex fell 0.25% in Taiwan, at 15,818.20 points.

In turn, the Japanese Nikkei advanced 0.48% in Tokyo, to 28,444.19 points, thanks to the weakening of the yen, which reached the lowest level in almost three months against the dollar amid the prospect of further monetary tightening in the US.

This morning, the dollar reached 137.91 yen, the highest value since December 15, compared to 137.17 yen late yesterday afternoon in New York.

Another positive exception today was the Shenzhen Composite, a less comprehensive Chinese index that rose 0.29% to 2,114.91 points.

In Oceania, the Australian stock exchange was in the red, also pressured by US interest rates. The S&P/ASX 200 was down 0.77% in Sydney at 7,307.80 points.

The prevalence of moodiness in Asia and the Pacific came after Powell said on Tuesday in Senate testimony that the Fed could step up the pace of its rate hikes if US economic data warranted a more aggressive stance.

As a result, expectations that the Fed will raise interest rates by 50 basis points this month became the majority, which helped bring down the New York stock exchanges in Tuesday’s trading session. This Wednesday, Powell will be questioned in the House of Representatives.

Source: CNN Brasil

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