Stock indices of the largest countries in the Asia-Pacific Region (APR) are down in trading on Friday, following the U.S. stock market.
The pressure on stock markets is being put by renewed fears over further interest rate hikes amid a resilient U.S. economy, which was indicated by fresh statistical data, and hawkish comments from U.S. Federal Reserve (Fed) management.
Federal Reserve Bank of Cleveland (FRB) President Loretta Mester said she thought it was premature to conclude that US inflation was on a steady path toward the US central bank’s 2% target.
Although inflation has slowed somewhat since last summer, it is still too high, Mester said during an event at the University of South Florida on Thursday. Last week’s January Consumer Price Report showed that core inflation is slowing little, she said.
St. Louis Fed Chairman James Ballard said during a speech in Tennessee that he called for a sharper rate hike at the last Fed meeting and did not rule out a sweeping move further down the road.
Japan’s Nikkei 225 Index was down 0.7 percent by 7:13 a.m.
Shares of Internet company Rakuten Group Inc. (-5.5%), Recruit Holdings Co. Ltd., which owns job search sites, (-3.9%) and industrial equipment manufacturer Keyence Corp. (-2.6%).
In addition, investment technology stocks of SoftBank Group (-2.1%), consumer electronics maker Sony (-2.3%) and Asia’s largest clothing retailer Fast Retailing (-0.7%) were getting cheaper.
China’s Shanghai Composite Index was down 0.1% by 7:23 a.m. Hong Kong’s Hang Seng lost 0.7%.
Shares of computer maker Lenovo Group Ltd. were down the most on the Hong Kong Stock Exchange. – by 4 percent, jewelry company Chow Tai Fook Jewellery Group Ltd. – by 3.8 percent and Internet company Baidu Inc. – Ltd. by 2.8 percent.
Shares of Internet giant Alibaba dropped 1.4 percent and consumer electronics maker Xiaomi Corp. – 2.4% and Internet company Meituan – 2.6%.
South Korea’s Kospi was down 0.9% by 7:23 a.m.
One of the world’s biggest chip and electronics maker Samsung Electronics Co. was down 1.7%, automaker Hyundai Motor down 0.5%.
The Australian S&P/ASX 200 index fell 0.86% in trading.
The capitalization of the world’s largest mining companies BHP and Rio Tinto decreased by 0.25% and increased by 0.5% respectively.
