Most Asian stock markets saw declines following remarks from a US Federal Reserve official suggesting that the central bank might not implement the interest rate reductions Wall Street anticipated this year, primarily due to inflation concerns.
Japan’s key Nikkei 225 index dropped 2.4 percent to 38,812.24. In Sydney, the S&P/ASX 200 experienced a 0.8 percent decrease, ending at 7,756.20.
South Korea’s Kospi fell just shy of 1 percent, closing at 2,714.84. The Hang Seng in Hong Kong also saw a decrease of 0.8 percent, landing at 16,594.79.
Adding to the gloomy market sentiment were tensions in the Middle East. However, some analysts believe the Fed might still opt for at least one rate cut later in the year.
US stocks faced a downturn on Thursday following comments by Minneapolis Fed President Neel Kashkari, who expressed doubts about the necessity of rate cuts given the resilience of many sectors in the economy despite high interest rates.
The S&P 500 saw its worst performance in seven weeks, dropping 1.2 percent. It had earlier nearly reached its record high from the previous week with a nearly 1 percent gain.
The Dow Jones Industrial Average fell 1.4 percent, reversing an initial rise of nearly 300 points. The Nasdaq Composite also declined by 1.4 percent.
Yields on 10-year Treasury bonds in the US decreased to 4.30 percent from 4.35 percent at the close on Wednesday.
