HK, regional markets mostly down amid new US attacks
Asian equity markets were mostly lower at the start of a new week as oil prices rose following the latest US attacks on Iran and hawkish comments from Federal Reserve chair Kevin Warsh increased expectations of a US interest-rate hike. In Hong Kong, the benchmark Hang Seng Index opened down 164 points, or 0.64 percent, at 25,420. The China enterprises index was 46 points, or 0.55 percent, lower…
Asian stock markets experienced a downward trend at the beginning of a new week as oil prices surged following recent US attacks on Iran and hawkish remarks from Federal Reserve chair Kevin Warsh. In Hong Kong, the Hang Seng Index started the day 164 points, or 0.64 percent, lower at 25,420. The China Enterprises Index fell 46 points, or 0.55 percent, to 8,444, while the tech index decreased 19 points, or 0.42 percent, to 4,585.
On the mainland, the Shanghai Composite Index dropped 25 points, or 0.65 percent, to 3,926. The Shenzhen Component Index declined 188 points, or 1.35 percent, to 13,764, and the ChiNext Index dropped 57 points, or 1.67 percent, to 3,367.
In Tokyo, the Nikkei Index opened 737 points, or 1.11 percent, lower at 66,405, with losses reaching 1,072 points at the midday mark. In Seoul, the Kospi Index started the day 175 points, or 2.58 percent, down at 6,613, before easing to 133 points lower at the noon hour. Most of the losses occurred after Warsh's speech, which was perceived as more hawkish than anticipated.
Warsh emphasized the need to address high inflation as a priority, stating that the US needs to be confident that underlying inflation will move towards its target at a sufficient pace. With inflation in the US at 3.7 percent, nearly double the Fed's target of 2 percent, investors are concerned that high energy prices resulting from the Iran conflict might persist as winter approaches.
Warsh acknowledged the strength of the US economy, highlighting the robust employment situation, despite expressing concerns over the price stability aspect of the Fed's mandate.
Written by urgent.news from RTHK News - Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
