Asian stock markets mostly closed lower on Wednesday, as investors reacted to Federal Reserve Chairman Jerome Powell’s warning of the need for the Fed to raise interest rates faster and for a longer period of time than expected, in order to control inflation that remains at a very high level.
Japan’s Nikkei closed at a six-month high of 28,444.19 points, up 135.03 points or 0.48%, as the weaker yen against the dollar will help the tourism sector recover through an increase in foreign visitors. The rise and depreciation of the yen also led to buying pressure for technology stocks.
However, Australia closed down, with the S&P/ASX 200 closing at 7,307.80 points, down 56.90 points or 0.77%, and All Ordinaries closing at 7,503.90 points, down 58.80 points or 0.78%.
South Korea’s composite closed down at 2,431.91, down 31.44 points or 1.28%, as the won was the weakest in a month against the dollar.
China’s Shanghai Composite also closed down at 3,283.25, down 1.85 points or 0.06%.
Hong Kong’s Hang Seng closed at 20,051.25 points, down 483.23 points or 2.35%.
Meanwhile, Thailand’s SET closed at 1,612.60 points, down 5.91 points or 0.37%.
Investors are closely monitoring Powell’s remarks, which have raised fears of higher interest rates that could hurt global economic recovery.