Investors Withdraw from Asian Stocks amid Fed’s Signal for Faster-Than-Expected Rate Hike
Stocks in Asia traded mostly lower on Thursday as investors withdrew from the market, following the plummet in Wall Street last night.
Stocks in Asia fell on Thursday after the U.S. Fed signaled for a faster-than-expected rate hike amid rising inflation.
Last night, the U.S. Federal Reserve on Wednesday kept its benchmark interest rates unchanged at the record-low level of near zero, as the economic recovery continues amid growing concerns over inflation surge.
Fed’s Chairman Jerome Powell stated that the Fed raised GDP expectations for this year to 7% from 6.5% previously. The unemployment estimate remained unchanged at 4.5%.
Meanwhile, the rate hike that was expected to move again in 2024, now expected to be two hikes in 2023.
As of 9:45 local time in Thailand, Nikkei fell 1.38%, SSEC rose 0.22%, HSI dropped 0.02%, ASX 200 slipped 0.30% and Kospi plunged 0.54%.
The Dow Jones Industrial Average fell 265.66 points or 0.77 percent to 34,033.67. The S&P 500 decreased 22.89 points or 0.54 percent to 4,223.70. The Nasdaq Composite Index was down 33.17 points or 0.24 percent to 14,039.68.
Yesterday, SET Index closed at 1,624.79 points, increased 2.48 points or 0.15% with a trading value of 90.4 billion baht.