Asia-Pacific markets extended their losses on Thursday after the U.S. Federal Reserve’s July minutes showed inflation concerns lingered, which could lead to more rate hikes.
“With inflation still well above the Committee’s longer-run goal and the labor market remaining tight, most participants continued to see significant upside risks to inflation, which could require further tightening of monetary policy,” the meeting summary stated.
The Federal Funds rate currently stands at 5.25% to 5.5%, the highest in 22 years.
Hong Kong’s Hang Seng index tumbled more then 2% on its open and led losses in the region, while on mainland China, the CSI 300 inched down 0.47%.
In Australia, the S&P/ASX 200 was down 0.9%, ahead of its unemployment rate for July.
Japan’s Nikkei 225 slid 1.41% and the Topic was 1.38% lower, as the country saw its trade balance slip into a deficit in July from a surplus in June.
South Korea’ Kospi was down 1.38%, while the Kosdaq slipped 1.08%.
Overnight in the U.S., all three major indexes notched a second straight losing session as the Dow Jones Industrial Average dropped 0.52%, while the S&P 500 dipped 0.76%. Meanwhile, the Nasdaq Composite saw the largest loss, falling 1.15%.
— CNBC’s Hakyung Kim and Alex Harring contributed to this report
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