Asian Stocks Plummet as Hawkish Fed Comments Boost Rate Hike Bets
Asian stocks dropped sharply on August 31 following hawkish comments from Federal Reserve Chairman Kevin Warsh. The MSCI's Asia-Pacific equities gauge fell as much as 1% before paring its decline to 0.6%, with technology shares leading the losses.
The Kospi index, which is a barometer for artificial intelligence investments, dropped 1.6% with chipmakers Samsung Electronics and SK Hynix among the decliners.
US stock-index futures also retreated, while the dollar traded in a narrow range against major peers after posting its biggest gain in about a month on August 28 following Warsh's remarks.
Oil prices climbed as Middle East tensions intensified, with Brent crude rising 1.4% to $89.30 a barrel after the US military struck Iranian rocket launchers that were preparing to send mines into the Strait of Hormuz.