Investing.com - Asian markets are set for further declines on Friday, following the trend among global equities and investors retreated amid ongoing concerns about economic growth and the Federal Reserve's hawkish rate pause, after officials hinted at another rate hike in the coming months.
By 12:55am GMT, the S&P/ASX 200, KOSPI 200 and Nikkei 225 were down 1.1%, 0.9% and 1.2% respectively.
Chinese markets registered losses during Thursday's trade, with consumption stocks and automakers experiencing the most significant losses. China Tourism Group Duty Free Corp Ltd (HK:1880) dropped 3.3%, BYD Co Ltd Class A (SZ:002594) fell 1.8%, and Great Wall Motor Co Ltd (SS:601633) declined 2.8%. However, hardware makers and telcos were the only bright spots, with ZTE (HK:0763) Corp (SZ:000063) rising 2.4% and China Telecom Corp Ltd (SS:601728) gaining 0.8%. The benchmark Shanghai Composite ended 0.8% lower at 3084.70, while the Shenzhen Composite Index fell 0.8%, and the tech-heavy Chinext Price Index declined 1.0%.
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In Hong Kong, shares also closed lower following the US Federal Reserve's decision to pause its tightening cycle, signaling the possibility of another rate hike this year to combat inflation. The Hang Seng Index closed 1.3% lower, while the Hang Seng Tech Index ended down by 1.85%. Leading the losses were the technology and health sectors, with Alibaba (NYSE:BABA) Group Holding Ltd (HK:9988), Meituan, and Alibaba Health Information Technology Ltd (HK:0241) all recording significant declines. Among the few gainers was Chow Tai Fook Jewellery Group Ltd (HK:1929), the only stock to rise above 1%.
Japanese stocks also closed lower, with electronics and pharmaceutical shares taking a hit due to the prospect of the Federal Reserve's further tightening measures. The Nikkei 225 fell 1.4% to 32571.03, while the 10-year Japanese government bond yield rose to its highest level since September 2013.
Indian stocks followed the regional trend, with the BSE Sensex 30 falling 0.85% due to losses in the banking sector. However, the tech sector managed to make some gains, with Tech Mahindra Ltd (BO:TEML), eMudhra Ltd (BO:EMUD), and Ramco Systems Ltd (BO:RMCS) all posting positive results.
European markets also experienced losses as investors grappled with the potential for a prolonged period of higher interest rates. The STOXX 600, DAX and CAC 40 all fell over 1%. Despite this, Brent crude managed to gain 0.4% to $93.87 a barrel. The FTSE 100 closed down 0.7%, feeling the pressure from the US where the Federal Reserve has indicated that rates will remain high for an extended period.