SEOUL, South Korea (AP) – Asian stocks slumped Thursday after the U.S. Federal Reserve raised its key interest rate and said it would pick up the pace of future increases. South Korea’s market benchmark tumbled nearly 2 percent on the first trading day after a meeting of U.S. and North Korean leaders.
KEEPING SCORE: Japan’s Nikkei 225 sank 1 percent to 22,738.61 while South Korea’s Kospi plunged 1.8 percent 2,423.48. Hong Kong’s Hang Seng index dropped 1.1 percent to 30,390.22. China’s Shanghai Composite Index was down 0.1 percent to 3,046.23. Australia’s S&P-ASX 200 slipped 0.1 percent to 6,016.60. Stocks in Taiwan, Singapore and other Southeast Asian markets were also lower.
FED: The Fed’s rate hike was its second this year. The American central bank raised its outlook for increases this year from three to four. Chairman Jerome Powell said the U.S. economy is in great shape but investors worry faster rate hikes could stifle growth.
People walk by an electronic stock board of a securities firm in Tokyo, Thursday, June 14, 2018. Asian stock markets slumped on Thursday with South Koreans stocks plunging 1.6 percent on the first day of trading after an unprecedented summit between leaders of North Korea and the United States. Stocks plunged after Federal Reserved hiked its key rate and signaled an acceleration in its pace of rate increase. (AP Photo/Shuji Kajiyama)
ANALYST’S TAKE: Expectations for further Fed tightening and U.S.-Chinese trade tensions “provide Asian markets with poor intraday leads,” said Jingyi Pan of IG in a report.
KOREA TALKS: South Korean investors sold stocks after President Donald Trump’s meeting with North Korean leader Kim Jong