Asian markets mixed after Fed signals rate hikes in 2023; U.S. stock futures dip

Fed Chair Jerome Powell said projections for future rate increases should be “taken with a big grain of salt” and reiterated that he believes that inflation is transitory.

Jun 17, 2021 01:06 IST India Infoline News Service

Asian markets were mixed on Thursday after the U.S. Federal Reserve moved up its timeline for rate hikes. In Japan, the Nikkei 225 fell 0.93% in afternoon trade while the Topix index dipped 0.75%, the S&P/ASX 200 in Australia fell 0.37% and South Korea’s Kospi declined 0.42%.

Mainland Chinese stocks were higher, as the Shanghai Composite gained 0.21%, while the Shenzhen Component advanced over 1% and Hong Kong’s Hang Seng index rose 0.19%.

Further, US Stock futures dipped with Futures on the Dow Jones Industrial Average fell 59 points or 0.17%. S&P 500 futures edged 0.27% lower and Nasdaq 100 futures shed 0.43%.

U.S. stocks fell during Wednesday’s session after the Fed’s initial statement and economic projections. The Dow Jones Industrial Average closed the day 265 points lower to 34,033.67. The S&P 500 edged 0.5% lower to 4,223.70. The Nasdaq Composite dipped 0.2% to 14,039.68.

Meanwhile, oil prices were lower, with international benchmark Brent crude futures declining 0.6% to $73.94 per barrel. U.S. crude futures slipped 0.57% to $71.74 per barrel.

Fed Chair Jerome Powell said projections for future rate increases should be “taken with a big grain of salt” and reiterated that he believes that inflation is transitory.

Powell also did not issue guidance on when the central bank will begin tapering its bond-buying program.

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