Concerns about interest rates send Asian stock markets down.

Date: 2022-08-29
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Asia's stock markets fell after the president of the US Federal Reserve warned interest rates will be raised further to combat rising costs.
The Federal Reserve's actions, according to Jerome Powell, would bring "some hardship to people and companies."
Higher interest rates make borrowing more expensive for people and businesses, thereby slowing economic development and inflation.
In Tokyo on Monday morning, the Nikkei 225 index fell 2.8%.
In the Asia-Pacific area, the Kospi in South Korea and the ASX 200 in Australia were both down more than 2%, while the Hang Seng in Hong Kong was down 0.8%.
This happened after the main stock indices in New York plummeted by more than 3% on Friday following Mr.Powell's words
Mr Powell indicated during a highly anticipated address at a conference in Jackson Hole, Wyoming, that the Federal Reserve was expected to continue raising interest rates in the coming months and that they may remain high "for some time."
While the rises would be costly for American individuals and companies, he stated that "failure to restore pricing stability would bring considerably more hardship."
Inflation in the world's largest economy, measured by GDP, is at a four-decade high.
In a commentary, Vishnu Varathan, head of economics and strategy at Mizuho Bank, stated, "Fed Chair Powell went for the throat, communicating (an) uncompromising attack on inflation."
"Justification for this unyieldingly hawkish approach was as clear as it was unambiguous," he continued.
Investors are also concerned that the Chinese economy is faltering, according to Dan Wang, chief economist at Hang Seng Bank China.
"Because of the protracted Covid restriction, China's economic outlook has deteriorated, necessitating more policy rate reduction. Without more rate cuts in China, domestic demand is too weak "She stated.

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