Stocks in Asia Pacific fell on Thursday as the U.S. Federal Reserve indicated on Wednesday that it would keep interest rates near zero through 2022.
In Tokyo, the Nikkei 225 shed 652.04 points, or 2.8%, to 22,472.91. The Japanese yen traded at 106.94 per U.S. dollar, having strengthened from levels above 109 seen earlier in the trading week.
The Hang Seng index in Hong Kong dropped 569.58 points, or 2.3%, to 24,480.15. Shares of Chinese internet giant NetEase surged in their Hong Kong debut on Thursday, jumping more than 5% from their issue price.
Investor reaction to the Fed’s recent economic forecast was watched on Thursday. The U.S. central bank kept interest rates unchanged on Wednesday and indicated it does not expect to raise them through 2022. The Fed also expects the U.S. economy to contract by 6.5% in 2020 before expanding by 5% in 2021.
The Australian dollar changed hands at $0.6944 after seeing an earlier high of $0.7004.
In other markets
In Shanghai, the CSI 300 subtracted 43.83 points, or 1.1%, to 3,995.88.
In Korea, the Kospi lost 18.91 points, or 0.9%, to 2,176.78
In Taiwan, the Taiex index let go of 184.39 points, or 1.6%, to 11,535.77
In Singapore, the Straits Times Index slumped 96.36 points, or 3.4%, to 2,704.21.
In New Zealand, the NZX 50 gave up 105.60 points, or 0.9%, to 11,154.93
In Australia, the ASX 200 dwindled 187.79 points, or 3.1%, to 5,960.64.