Asian stocks fell on Wednesday following heavy losses on Wall Street, as worries about upcoming interest rate hikes persisted and data from China disappointed investors.
On the board, Japan’s Nikkei 225 lost 0.4% to 28,091.53 points.
In Hong Kong the Hang Seng gained 0.5%, while in mainland China the Shanghai Composite fell 0.5% after data showed manufacturing activity contracted again in August.
The official manufacturing PMI edged up to 49.4 in August from 49.0 in July, remaining below the 50-point mark that separates expansion from contraction in business activity. The measurement, however, exceeded the estimates of analysts in a poll by the Wall Street Journal, who placed the index at 49.2 points.
In South Korea the Kospi gains 0.75%, while in Australia the S&P/ASX 200 loses 0.2%. Indexes in New Zealand, Singapore and Indonesia also lost ground.
Data released yesterday in the US showed that consumer confidence improved in August, while job openings in the economy rose to 11.2 million in July from 11 million in June. The encouraging data boosted expectations that the Fed will continue its aggressive rate hikes to counter the rally in inflation.
The US central bank has already raised interest rates four times this year, with the last two hikes being 75 basis points higher than usual. Investors expect the Fed to make another 75 basis point hike in September, before continuing with smaller hikes.
Source: Capital
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