Asian shares dropped for a second day, with energy and material companies leading declines, after Treasuries and U.S. equities fell on Federal Reserve Jerome Powell’s inflation and interest rate hike comments.
The MSCI Asia Pacific Index retreated 1.1 percent at 4:42 p.m. in Hong Kong, wiping out this week’s gains. Japan’s Topix fell 1.2 percent, ending a three-day rising streak, while Hong Kong’s Hang Seng Index lost 1.4 percent.
Asia’s rebound from lows reached earlier this month faltered as investors saw hawkishness in Powell’s latest comments. He expects a strong economy over the next two years, opening the door to four interest rate hikes in 2018.
Source : Bloomberg