AFP, Hong Kong :
Asian markets turned lower Friday as investors took their foot off the pedal at the end of a broadly positive week, while the dollar strengthened after the Federal Reserve flagged more interest rate hikes down the line.
Energy firms were among the biggest losers as oil prices fell into a bear market after dropping 20 percent from their recent highs.
The US midterms provided a much-needed fillip to equities as traders bet that the expected gridlock on Capitol Hill would keep Donald Trump from pushing through measures that would likely stoke inflation and in turn rate hikes.
Rising US borrowing costs have been one of the major issues weighing on global equities this year.
However, after its latest policy meeting Thursday the Fed repeated that it expected “further gradual increases” in the key interest rate as the economy goes from strength to strength.
The central bank said growth “has been rising at a strong rate”, jobs were picking up, unemployment dropping and household spending “growing strongly”.
While it did not lift rates, observers said another move upwards next month was very likely.
US markets closed mostly lower, with Asian equities following suit.
Tokyo ended down 1.1 percent. Hong Kong shed 2.4 percent and Shanghai finished 1.4 percent lower after data showed another drop in Chinese factory prices, while tech firms were hit by a series of weak earnings results from mainland firms.
“China producer’s inflation is cooling as manufacturing activity is receding damping price pressures on raw commodities, yet another casualty of US-China trade wars,” said Stephen Innes, head of Asia-Pacific trade at OANDA. “The decline in the PPI underscores increased economic pressures.”
Sydney eased 0.1 percent, Singapore sank 0.6 percent and Seoul was off 0.3 percent. Taipei and Jakarta were both down more than one percent.
The dollar, which turned lower after the election results, picked up against most other currencies in New York and continued that trend in Asia, with emerging market and other higher-yielding units sharply lower.
Asian markets turned lower Friday as investors took their foot off the pedal at the end of a broadly positive week, while the dollar strengthened after the Federal Reserve flagged more interest rate hikes down the line.
Energy firms were among the biggest losers as oil prices fell into a bear market after dropping 20 percent from their recent highs.
The US midterms provided a much-needed fillip to equities as traders bet that the expected gridlock on Capitol Hill would keep Donald Trump from pushing through measures that would likely stoke inflation and in turn rate hikes.
Rising US borrowing costs have been one of the major issues weighing on global equities this year.
However, after its latest policy meeting Thursday the Fed repeated that it expected “further gradual increases” in the key interest rate as the economy goes from strength to strength.
The central bank said growth “has been rising at a strong rate”, jobs were picking up, unemployment dropping and household spending “growing strongly”.
While it did not lift rates, observers said another move upwards next month was very likely.
US markets closed mostly lower, with Asian equities following suit.
Tokyo ended down 1.1 percent. Hong Kong shed 2.4 percent and Shanghai finished 1.4 percent lower after data showed another drop in Chinese factory prices, while tech firms were hit by a series of weak earnings results from mainland firms.
“China producer’s inflation is cooling as manufacturing activity is receding damping price pressures on raw commodities, yet another casualty of US-China trade wars,” said Stephen Innes, head of Asia-Pacific trade at OANDA. “The decline in the PPI underscores increased economic pressures.”
Sydney eased 0.1 percent, Singapore sank 0.6 percent and Seoul was off 0.3 percent. Taipei and Jakarta were both down more than one percent.
The dollar, which turned lower after the election results, picked up against most other currencies in New York and continued that trend in Asia, with emerging market and other higher-yielding units sharply lower.
