Asia-Pacific markets were all lower Friday, extending losses from Thursday’s broad sell-off.
This comes as U.S. Federal Reserve Chair Jerome Powell said inflation was still too high and would likely require lower economic growth. The benchmark U.S. 10-year Treasury yield also crossed 5% for the first time in 16 years Thursday evening.
While he noted that recent data showed progress toward slowing prices, Powell also added that monetary policy was not yet too tight.
Asia investors will also assess Japan’s September inflation data, which came in at 3%, the 18th straight month above the BOJ’s 2% target, as well as China’s one-year and five-year loan prime rates.
In Australia, the S&P/ASX 200 slid 1.37%.
Japan’s Nikkei 225 fell 0.97% after the inflation reading was released, while the Topix was down 0.93%.
South Korea’s Kospi dropped 1.98%, while the Kosdaq was 2.97% lower.
Hong Kong’s Hang Seng index edged 0.77% lower in its first hour of trade, while China’s benchmark CSI 300 index slipped 0.43%. China’s central bank kept its benchmark loan rates unchanged for October.