Stocks drop after the Fed signals more hikes ahead

Pedestrians walk past the Exchange Square complex, home to the Hong Kong Stock Exchange, in Hong Kong, China, Tuesday, March 23, 2021.

Paul Yeung | Bloomberg via Getty Images

Asia-Pacific stocks fell on Thursday after US Federal Reserve Chairman Jerome Powell reported other upcoming hikes after raising the rates of 75 basis points as expected and called discussions on pausing the tightening cycle “premature”.

that of Hong Kong Hang Seng Index fell 3.11% in the past hour of trading, leading to losses in the broader Asia-Pacific trading session. Hang Seng Tech fell 3.49%. Mainland China Shanghai composite lost 0.19% to 2,997.81, and the Shenzhen Component was down 0.344% at 10,840.06.

In Australia, the S&P/ASX 200 was down 1.84% at 6,857.90. The Kospi was down 0.33% at 2,329.17 and the Japanese market was closed for a holiday on Thursday. MSCI’s broadest index of Asia-Pacific stocks outside Japan fell 2.01%.

Overnight on Wall Street, the Dow Jones Industrial Average fell 505.44 points, or 1.55% to 32,147.76, and the S&P 500 lost 2.5% to 3,759.69. The Nasdaq Composite fell 3.36% to 10,524.80.

The indices rose earlier in the session on a line from the Fed statement that said “the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation , and economic and financial developments”.

– CNBC’s Patti Domm and Jeff Cox contributed to this report.

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