Asian shares fell on Tuesday after Federal Reserve officials cemented the view that U.S. interest rates are likely to remain elevated for some time, while the yen slid to near a one-year low, putting traders on watch for intervention from Japanese authorities.
MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) fell 1.36% to their lowest since Nov. 28, 2022. Japan’s Nikkei (.N225) fell 1.5%, while Hong Kong’s Hang Seng Index (.HSI) was 1% lower. Chinese markets were closed for the week because of the Golden Week Holiday.
U.S. Federal Reserve officials said that monetary policy will need to stay restrictive for “some time” to bring inflation back down to the Fed’s 2% target.
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