Asia-Pacific markets fell across the region after the U.S. Federal Reserve held its benchmark policy rate, but said it will raise interest rates one more time this year, according to the central bank’s projections.
In Japan, the Nikkei 225 fell another 452.75 points, or 1.4%, to 32,571.03, as the Bank of Japan starts its two-day monetary policy meeting.
In Hong Kong, the Hang Seng index dropped 230.19 points, or 1.3%, to 17,655.41.
Projections showed the central bank expects to hike rates to a median of 5.6% by the end of 2023, up from the current range between 5.25% and 5.5%.
The rate-setting Federal Open Market Committee projected two rate cuts in 2024, which is two fewer than its forecast in June. That would put the funds rate around 5.1%.
Korean stocks also headed downward to their lowest levels in almost a month.
Australian markets closed at levels not seen since July 10.
The CSI 300 sank 33.25 points, or 0.9%, to 3,672.44.
Shares of Chinese electric vehicle maker Nio gained as much as 2.31% after the company announced the launch of its first mobile phone.
The stock was one of the few gainers on the Hang Seng, and the only gainer among major tech names as the broader index sold off after the U.S. Federal Reserve’s signal that rates will be higher for longer.
The new phone will be shipped on Sept. 28.
In other markets
In Taiwan, the Taiex index staggered 218.08 points, or 1.3%, to 16,316.67.
In Singapore, the Straits Times docked 39.19 points, or 1.2%, to 3,202.81.
In Korea, the Kospi index dumped 44.77 points, or 1.8%, to 2,514.97.
In New Zealand, the NZX 50 settled 6.08 points, or 0.1%, to 11,318.74.
In Australia, the ASX 200 fell 98.1 points, or 1.4%, to 7,065.23.