Shares in the Asia-Pacific dropped on Thursday after the U.S. Federal Reserve Chairman Jerome Powell signaled further hikes ahead after raising rates by 75 basis points as expected and called discussions on pausing the tightening cycle “premature.”
Markets in Japan were shuttered Thursday for holiday.
In Hong Kong, the Hang Seng collapsed 487.68 points, or 3.1%, to 15,339.49
One expert said there would be a “real meaningful impact on growth” in Asia if China reopens, including the border between the mainland and Hong Kong. Chief executive of Singapore’s largest bank DBS, Piyush Gupta told the media. “China reopening would provide upside to all of Asia.”
In South Korea, market bellwether Samsung Electronics saw sharp losses in the overall negative session, down 2.4% in the early hours of trade.
Hyundai Motor lost 2.4% and SK Hynix dropped 2.5%, while Naver lost 3.5%.
Bucking the trend, defense stocks, gained after North Korea fired more missiles into the waters between Korea and Japan.
Victek jumped 3.4%, while Korea Aerospace added 1.2%. Hanwha Aerospace was 0.7% higher.
CHINA
In Shanghai, the CSI 300 dipped 29.91 points, or 0.8%, to 3,647.90.
China’s Caixin Services Purchasing Managers’ Index came in at 48.4 for October, the lowest reading since May and the second consecutive contraction for the sector.
In September, the print was 49.3, also below the 50-point mark, indicating a contraction.
Earlier this week, the official non-manufacturing PMI came in at 48.7.
PMI readings are sequential and represent month-on-month expansion or contraction
In other markets
In Taiwan, the Taiex lost 113.57 points, or 0.9%, to 12,986.60.
In Korea, the Kospi index erased 7.7 points, or 0.3%, to 2,329.17.
In Singapore, the Straits Times Index subtracted 38.62 points, or 1.2%, to 3,102.51.
In New Zealand, the NZX 50 lost 98.49 points, or 0.9%, to 11,184.30.
In Australia, the ASX 200 skidded 128.78 points, 1.8%, to 6,857.88.