Asia stock markets decline amid inflation, oil price worries
ABC News
Asian shares are mostly lower as worries about inflation set off expectations the U.S. Federal Reserve might accelerate its plans to raise interest rates
TOKYO -- Asian shares mostly fell Wednesday as worries about inflation set off expectations the U.S. Federal Reserve might move faster than anticipated to raise interest rates.
Japan's Nikkei 225 dropped 1.6% to finish at 29,302.66, following a national holiday Tuesday, as technology shares especially took a hit over the speculation about the Fed's moves. South Korea's Kospi slipped 0.1% to 2,993.80. Australia's S&P/ASX 200 edged down 0.2% to 7,399.40. Hong Kong's Hang Seng rose 0.6% to 24,788.50, while the Shanghai Composite edged up 0.2% to 3,594.45.
“Markets continue to shift their expectations toward a tighter Fed monetary policy," said Yeap Jun Rong, a market strategist at IG, adding that investors will be watching for U.S. data being released later in the day.
Some Asian central banks have already begun to raise interest rates to tamp down inflation. New Zealand's raised its benchmark interest rate by 0.25% Wednesday to 0.75%.
