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Losses on Asian stock markets after high US inflation rate

Photo: ANP

Stock markets in Asia showed red numbers on Friday. Investors processed the high inflation figures from the United States and the significant price losses on Wall Street amid fears of further rate hikes by the Federal Reserve. In Tokyo, the Nikkei remained closed due to a day off.

Inflation in the US rose to 7.5 percent year-on-year in January, the highest level in 40 years. This increases the chance that the Fed will raise interest rates even more aggressively than previously thought. Fed chief James Bullard said interest rates should be raised by 1 percentage point in the first half of the year.

The Hang Seng in Hong Kong was down 0.7 percent in the meantime and the stock market in Shanghai lost 0.5 percent. Investors in China also digested news that Chinese banks lent record amounts in January, aided by government support measures. According to the Chinese central bank, this involved an amount of 4 trillion yuan, converted 550 billion euros, in loans.

Real estate companies were among the winners in Hong Kong. The Chinese government is relaxing the rules on financing real estate projects. The financially troubled real estate group Evergrande climbed 0.6 percent, Sunac China gained 3 percent and China Aoyuan gained almost 6 percent.

The Kospi in Seoul fell 0.9 percent. South Korean computer game company Krafton plunged 14 percent after disappointing quarterly figures. The All Ordinaries in Sydney finished 1 percent lower.



Losses on Asian stock markets after high US inflation rate
Source link Losses on Asian stock markets after high US inflation rate

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