Markets update: Asian stocks follow Wall St lower on Fed hints at rate hike

Asian stock markets followed Wall Street lower Thursday after the Federal Reserve indicated it might ease off economic stimulus earlier than previously thought. Tokyo, Hong Kong and Seoul fell while Shanghai gained after Fed policymakers, who previously forecast no interest rate hikes before 2024, estimated their benchmark rate would be raised twice by late 2023. The Fed also indicated it sees the US economy improving faster than expected. On Wall Street, the benchmark S&P 500 index fell 0.5 per cent on Wednesday after Fed projections showed some of its board members expect short-term interest rates to rise by half a percentage point by late 2023. Ultra-low rates from the Fed and other central banks have propelled a global stock market rebound from last year's plunge amid the coronavirus pandemic. The Fed may have delivered a more hawkish message for markets than many would have expected, Yeap Jun Rong of IG said in a report. Still, Yeap said, differing views among board members ..

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