Japan’s Nikkei plunges at open as Asia markets drop following Powell’s Jackson Hole speech

Soegeefx AppsAsia MarketJapan’s Nikkei plunges at open as Asia markets drop following Powell’s Jackson Hole speech

Shares in the Asia-Pacific traded lower on Monday following Fed Chairman Jerome Powell’s speech at Jackson Hole on Friday. He warned that rising interest rates will cause “some pain” to the U.S. economy, saying higher interest rates likely will persist “for some time.”

The in Japan Nikkei 225 slipped 2.57% and the Topix index declined 2.09%. South Korea’s Kospi fell 2.4% and the Kosdaq index dropped 3.14%.

In Australia, the S&P/ASX200 fell 2%.

MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.9%, while the Japanesse Yen traded at 138.27 per dollar.

.N225 Nikkei 225 Index *NIKKEI 28164.43 -476.95 -1.67
.HSI Hang Seng Index *HSI 20170.04 0 0
.AXJO S&P/ASX 200 *ASX 200 7077.4 -26.7 -0.38
.SSEC Shanghai *SHANGHAI 3236.22 0 0
.KS11 KOSPI Index *KOSPI 2419.06 -61.97 -2.5
.FTFCNBCA CNBC 100 ASIA IDX *CNBC 100 8021.52 -123.06 -1.51

On Friday in the U.S., the Dow Jones Industrial Average plunged 1,008 points, or 3.03% to 32,283.40. The S&P 500 fell 3.37% to 4,057.66 and the Nasdaq Composite dropped 3.94% to 12,141.71.

“While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses,” Powell said. “These are the unfortunate costs of reducing inflation. But a failure to restore price stability would mean far greater pain.”

He said the Fed’s decision in September “will depend on the totality of the incoming data and the evolving outlook.”

Futures open lower

The negative momentum from Friday appears to have lasted over the weekend, as U.S. stock futures opened lower on Sunday evening.

Dow futures fell more than 200 points, while Nasdaq 100 futures fell about 1%.

— Jesse Pound

Source : CNBC

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