Economic news

Asian stocks fall after Fed's hawkish tone

Asian stocks weakened on Thursday after the Federal Reserve increased interest rates and hinted two more rate hikes later this year, while worries over sluggish Chinese economic figures and U.S.-China trade tensions kept traders cautious.

Photo: Reuters

MSCI's broadest index of Asia-Pacific shares slumped 1.0 percent, with stocks in South Korea and Taiwan sliding over one percent.

Japan's Nikkei dropped 0.6 percent while in mainland China, Shanghai composite index .SSEC is on track to touch a 20-month closing trough, losing 0.4 percent and Hong Kong's Hang Seng Index sank 0.4 percent.

The U.S. Fed increased its benchmark interest rate overnight lending rate a quarter of a percentage point to a range of 1.75 percent to 2 percent, as predicted, amid impressive U.S. economic growth.

On Wall Street, the S&P 500 tumbled 0.40 percent and the Nasdaq Composite closed down 0.11 percent overnight.

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