Asia: Stocks close sharply lower, after Fed signals interest rate hike in March - ISTOÉ DINHEIRO

Asian stock exchanges closed business this Thursday, 27, sharply lower, after the Federal Reserve (Fed, the US central bank) made it clear yesterday that it intends to start raising interest rates from March.

The South Korean Kospi index led losses in Asia, with a drop of 3.50% in Seoul, to 2,614.49 points, its lowest level in 14 months. The Nikkei was down 3.11% in Tokyo, at 26,170.30 points, while the Hang Seng was down 1.99% in Hong Kong, at 23,807.00 points, and the Taiex was modestly lower in Taiwan, at 0. .15%, at 17,674.40 points.

In mainland China, the Shanghai Composite dropped 1.78% to 3,394.25 points, hitting its lowest since July last year, and the less comprehensive Shenzhen Composite shed 2.87% to 2,262.41 points. , lowest closing level in more than eight months.

This Wednesday, Fed Chairman Jerome Powell clearly signaled that the US central bank plans to raise rates in March, which has not happened since December 2018. Powell’s comments, which followed the Fed’s decision to keep its rates intact This month, they also generated expectations that several more rate hikes will be needed throughout the year to contain inflationary pressures and as the US economy continues to recover from the shocks of the Covid-19 pandemic.

Investors in Asia also remain alert to unfolding geopolitical tensions between Ukraine and Russia.

In Oceania, the Aussie stock market was gripped by post-Fed sentiment on the return of a national holiday. The S&P/ASX 200 is down 1.77% in Sydney at 6,838.30 points and has entered correction territory, accumulating losses of more than 10% since peaking in August 2021. With information from Dow Jones Newswires.