Asian stocks traded higher on Friday after Wall Street plunged yesterday amid fears that the Federal Reserve’s anti-inflation campaign could lead the economy into recession.
In Hong Kong, the Hang Seng index plunged 3.5%, while in mainland China the Shanghai Composite lost 2.1%
The Japanese Nikkei 225 gains 0.5%. The Japanese stock market had closed in the previous days due to a local holiday.
The Kospi index fell 1.2%, while in Australia the S & P / ASX 200 lost 2.2%. Indices in New Zealand and Taiwan are falling 1.2% and 1.7% respectively.
The heavy losses follow the free fall of the Wall Street indices yesterday, with the S&P 500 index falling 3.6% to its biggest daily decline in the last two years. The tech Nasdaq lost 5%, while the industrial Dow Jones fell 1,063 points.
The Federal Reserve raised interest rates by 50 basis points on Wednesday as it continued to tighten its policy to address the highest inflation in 40 years. The US Federal Reserve is expected to continue raising interest rates as its balance sheet shrinks, raising fears about the resilience of the US economy, which is already suffering from the war in Ukraine, high energy prices and unrest. in global supply chains.
BNP Paribas analysts expect the Fed to continue raising interest rates until it reaches 3% to 3.25%.
Source: Capital
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