A pedestrian looks at stock prices of Japanese companies on the Tokyo Stock Exchange displayed on an electronic board in Tokyo on April 30, 2021.
Yuki Iwamura | AFP | Getty Images
Asia-Pacific stocks traded lower on Monday following Federal Reserve Chairman Jerome Powell’s speech in Jackson Hole on Friday. warned that Rising interest rates will cause “some pain” to the US economyIt says higher interest rates will continue “for some time”.
In Australia, the S&P/ASX 200 Down 1.89%.
of Hong Kong Hang Seng Index The Hang Seng Tech index fell 0.91%, down 0.7%.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.91%. Japanese yen It was trading at 138.58 per dollar.
In the US on Friday, the Dow Jones industrial average fell 1,008 points, or 3.03%, to 32,283.40. The S&P 500 fell 3.37% to 4,057.66, while the Nasdaq Composite fell 3.94% to 12,141.71.
“While higher interest rates, slower growth and softer labor market conditions will dampen inflation, they will bring some pain to households and businesses,” Powell said. “These are unfortunate costs of reducing inflation. But failure to restore price stability could mean much greater pain.”
He said the central bank’s decision in September “depends on the completeness of incoming data and the evolving outlook”.