Asian stocks tumble, dollar gains after hawkish Powell comments
Asian shares fell sharply on Wednesday, while the dollar advanced after hawkish comments from Federal Reserve Chair Jerome Powell raised the possibility of the U.S. central bank returning to large rate hikes to tackle sticky inflation.
The Fed will likely need to raise interest rates more than previously expected in response to recent strong data, Powell said on the first day of his semi-annual, two-day monetary policy testimony before Congress.
The hawkish comments from Powell sent U.S. stocks sharply lower, with the risk-off mood continuing in Asian trade.
MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was 1.72% lower and was on track for its biggest one-day percentage drop in a month. Australia’s S&P/ASX 200 index (.AXJO) fell nearly 1%, while Japan’s Nikkei (.N225) was the sole stock index in Asia with gains, up 0.3%.
China shares (.SSEC) slipped 0.42%, while Hong Kong’s Hang Seng Index (.HSI) fell 2.5%, set for its worst day since late January.
This report’s information was first seen on REUTERS; to read more, click this link.