(MENAFN- Baystreet.ca) Rate Hike Prospects Make Asia Markets Tank






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Asia-Pacific markets saw sharp losses after minutes from the U.S. Federal Reserve revealed that the central bank was split on its decision to pause its rate hikes in June and sees more hikes ahead at a slower pace.
In Japan, the Nikkei 225 cratered 565.58 points, or 1.7%, to 32,773.02.
In Hong Kong, the Hang Seng turfed 577.33 points, or 3%, to 18,533.05.
Hong Kong-listed shares of Chinese banks were among the leading decliners in the Hang Seng index after Goldman Sachs reportedly downgraded its ratings for the top mainland lenders.
Goldman Sachs lowered its rating for Agricultural Bank of China to“sell” from“neutral,” as well as downgrading Industrial and Commercial Bank of China and Industrial Bank from“buy” to“sell,” Reuters reported.
Hong Kong listed shares of Agricultural Bank of China dropped nearly 2% while ICBC fell 2.4%. Bank of Communications fell 1.54%.
Officials said that a brief pause in the Fed's tightening cycle would give the committee time to assess the impacts of the hikes, the most aggressive moves since the early 1980s.
Australia's trade surplus for June came in at 11.79 billion Australian dollars in May, higher than the AU$11.15 billion recorded in April.
The figure also beat expectations of economists polled by Reuters, who expected the surplus to decline to AU$10.5 billion.
Government data showed that imports of goods and services into Australia increased by 2.5% month on month in May, while exports climbed 4.4%.
CHINA
The CSI 300 dropped 26.06 points, or 0.7%, to 3,842.75.
U.S. Treasury Secretary Janet Yellen kicks off her visit to Beijing this week, where she is expected to meet with senior officials in China. This comes after China on Wednesday unexpectedly canceled EU High Representative for Foreign Affairs Josep Borrell's visit to China.
In other markets
In Singapore, the Straits Times Index lost 34.95 points, or 1.1%, to 3,150.43.
In Korea, the Kospi Index jettisoned 22.71 points, or 0.9%, to 2,556.29.
In Taiwan, the Taiex index doffed 294.26 points, or 1.7%, to 16,762.17.
In New Zealand, the NZX 50 forfeited 43.13 points, or 0.4%, to 11,959.33.
In Australia, ASX 200 removed 89.73 points, or 1.2%, to 7,163.45.

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