Asian Stocks Plummet Amid Rising Interest Rate Hike Expectations
The Asian stock market took a hit on Monday, with South Korea's Kospi falling 1.6% following hawkish comments from Federal Reserve Chair Kevin Warsh.
This came after Warsh stated in his Jackson Hole speech that he would bring inflation back to target, prompting traders to lift the probability of a September interest rate hike to 60%.
The US dollar strengthened against major peers, while oil prices rose due to escalating Middle East tensions after the US strikes on Iranian targets.