Asian Stocks Tumble as Fed Vows More Sharp Rate Hikes
Asian stock markets fell sharply on Thursday after the U.S. Federal Reserve hiked interest rates and vowed to tighten monetary policy aggressively to curb rampant inflation.
Technology-heavy indexes were the worst hit, tracking a similar overnight trend on Wall Street as investors discounted future earnings from the sector against a stronger dollar and elevated yields.
Hong Kong’s Hang Seng index slumped 2.1%, while the Taiwan Weighted index shed 1.1%. South Korea’s KOSPI also fell by nearly 1%.
The Federal Reserve hiked rates by 75 basis points for a third consecutive meeting on Wednesday, with Chairman Jerome Powell promising more steep rate hikes to combat inflation reaching a 40-year high. The bank now sees its benchmark interest rate reaching 4.4% by end-2022, and rising even further in 2023.
Powell also signalled that the bank was willing to risk headwinds to economic growth and the labor market from rising interest rates, as it looks to rein in inflation.
The Fed’s tone was seen as far more hawkish than expected, indicating that pressure on financial markets from elevated yields is set to continue for at least the next year.
HANG SENG Technical Analysis: Daily Chart
In the daily charts, HANG SENG is trading in down channel. HANG SENG is currently trading below all SMA.
RSI is in selling zone which indicates bearishness. MACD is currently below zero which indicates bearishness.
Its immediate support is 17985.00 & the resistance level is at 18479.00.
HANG SENG INDEX will trade in down channel until there is trend reversal.
How to Trade HANG SENG INDEX this Week:
HANG SENG INDEX will follow the downtrend until their trend reversal. So, remain bearish on HANG SENG INDEX.