Asian markets moved lower on Thursday, on concerns that the U.S. could push up interest rates earlier than expected.
Japan’s Nikkei 225 index slumped 239.29 points, or 1.7%, to 14,224.23
The Hang Seng Index in Hong Kong plummeted 386.53 points, or 1.8%, to 21,182.16, even though its second largest constituent-Tencent, which has been a substantial driver of the Hong Kong benchmark index so far this year--gained after it reported earnings.
The Nikkei started the day in positive territory, buoyed by a yen that softened overnight. The dollar gained 0.9% against its Japanese counterpart on Wednesday, its largest daily gain in two months. The Nikkei soon fell into line with the region’s losses.
The U.S. dollar was last ¥102.41, having touched an earlier high of ¥102.49, and slightly stronger than ¥102.33 late Wednesday in New York.
The region was focusing on overnight developments from the U.S., where Wall Street finished lower Wednesday after the Federal Reserve Chairwoman Janet Yellen said the central bank could start raising interest rates earlier than expected.
In a news conference after the bank’s latest policy-setting meeting, Ms. Yellen said the Fed could raise rates "something on the order of six months" after the bank shuts down its bond-buying program.
CHINA
The Shanghai CSI 300 Index slid 33.90 points, or 1.6%, to 2,086.97
Tencent overturned a loss early in the session to rise 1% after the Chinese Internet giant posted a 13% growth in net profit in the quarter ending Dec. 31.
Although this was the company’s slowest profit growth in nearly two years, it was not enough to curb enthusiasm for a stock, which is up 15.5% for the year, compared to an 8% decline on the Hang Seng index.
Also in China, the yuan continued its slide against the U.S. dollar. The onshore currency crossed 6.2110 to the dollar, compared with 6.1965 late Wednesday.
The offshore currency hit 6.20 per U.S. dollar - a point widely believed to trigger the unwinding of structured products that could further weaken the Chinese currency.
In other markets;
In Taiwan, the Taiex dropped 92.13 points, or 1.1%, to 8,597.33
Singapore’s Straits Times Index slipped 23.55 points, or 0.8%, to 3,057.20
Korea’s Kospi Index ditched 18.16 points, or 0.9%, to 1,919.52
The New Zealand Exchange 50 index gained 5.68 points, or 0.1%, to 5,160.39
In Australia, the S&P/ASX 200 fell 61.59 points, or 1.2%, to 5,294.
