{"id":10904,"date":"2021-06-17T08:41:09","date_gmt":"2021-06-17T08:41:09","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2021\/06\/17\/asian-shares-retreat-after-hawkish-fed-turn\/"},"modified":"2021-06-17T08:41:09","modified_gmt":"2021-06-17T08:41:09","slug":"asian-shares-retreat-after-hawkish-fed-turn","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2021\/06\/17\/asian-shares-retreat-after-hawkish-fed-turn\/","title":{"rendered":"Asian Shares Retreat After Hawkish Fed Turn"},"content":{"rendered":"
<\/div>

\n<\/p>\n

\n

Asian stocks ended mostly lower on Thursday, as investors reacted to the U.S. Federal Reserve predicting an earlier than expected timeline for a rate hike.<\/p>\n

Fed officials projected hikes in interest rates by 2023, a year earlier than previously expected amid the vaccine rollout. The new forecasts boosted the dollar and caused a sell-off of U.S. Treasuries.<\/p>\n

Chinese shares rebounded from three straight sessions of losses as data showing slowing factory output growth helped ease fears of policy tightening.<\/p>\n

The benchmark Shanghai Composite Index edged up 7.28 points, or 0.2 percent, to 3,525.60, while Hong Kong’s Hang Seng Index ended up 34.34 points, or 0.1 percent, at 28,471.18.<\/p>\n

Japanese shares ended lower, with drug makers and technology<\/span> companies underperforming. The Nikkei 225 Index slid 272.68 points, or 0.9 percent to settle at 29,018.33, while the broader Topix closed 0.6 percent lower at 1,963.57.<\/p>\n

Medical platform service firm M3 lost 3.6 percent and conglomerate Sony fell 2.3 percent, while banks and insurers advanced as U.S. Treasury yields gained.<\/p>\n

Mitsubishi UFJ Financial Group rose 1.2 percent, Dai-ichi Life Holdings advanced 2.5 percent and T&D Holdings added 3.1 percent.<\/p>\n

Toshiba gained 1.3 percent after its chairman said he may step down after revamping its board and appointing a new CEO, according to the Wall Street Journal.<\/p>\n

Australian markets<\/span> saw modest losses as commodity prices slipped on dollar strength and amid China’s campaign to rein in raw material prices.<\/p>\n

The benchmark S&P\/ASX 200 Index dropped 27.20 points, or 0.4 percent to 7,359, while the broader All Ordinaries Index ended down 32.90 points, or 0.4 percent, at 7,600.50.<\/p>\n

Mining heavyweights BHP and Rio Tinto fell over 1 percent each, while gold miners Evolution Mining, Newcrest, Northern Star Resources and Regis Resources lost 3-5 percent.<\/p>\n

Woodside Petroleum, Santos and Beach Energy fell 2-3 percent despite oil prices hitting multi-year highs on optimism over rising global demand. Whitehaven Coal plunged 11.5 percent as the coal producer cut its 2021 production guidance for the fourth time this year.<\/p>\n

Coles tumbled 4.5 percent after the supermarket giant told investors it plans to grow its business<\/span> through a range of new investments.<\/p>\n

Banks ANZ, Commonwealth and Westpac gained over 1 percent after data showed job creation in the country blew past expectations in May, with the unemployment rate tumbling to its lowest level since the start of the coronavirus<\/span> pandemic.<\/p>\n

Given soaring house prices, Reserve Bank governor Phil Lowe sounded a warning to the nation’s lenders to maintain borrowing standards.<\/p>\n

Seoul stocks ended lower to snap a five-day winning streak on hawkish comments from the Fed. The Kospi dipped 13.72 points, or 0.4 percent, to 3,264.96. Market bellwether Samsung Electronics dropped 1.1 percent and No. 2 chipmaker SK Hynix gave up 2.3 percent.<\/p>\n

New Zealand shares fell slightly on policy tightening fears after data showed the country’s economy<\/span> bounced back with faster than expected GDP growth in the three months through March on the back of a housing boom and strong retail spending. The benchmark NZX-50 Index ended down 40.40 points, or 0.3 percent, at 12,541.20.<\/p>\n

U.S. stocks fell overnight as the Federal Reserve raised inflation expectations and forecast rate hikes in 2023 as economic activity heats up. <\/p>\n

Eleven Fed officials forecast at least two hikes by the end of 2023, while seven officials expect a rate hike as soon as 2022.<\/p>\n

The Dow dropped 0.8 percent, the S&P 500 shed half a percent and the tech-heavy Nasdaq Composite slipped 0.2 percent. <\/p>\n<\/p>\n

Market Analysis<\/p>\n<\/div>\n