Asian Shares Slip On Fed Worries

(RTTNews) - Asian stocks fell on Friday, Treasury yields moved up and the dollar index rose as strong U.S. data released overnight fueled worries that the Federal Reserve would stick to its aggressive tightening path for longer to tame inflation.

U.S. weekly jobless claims data pointed to a still tight labor market and third-quarter GDP data was revised higher, renewing hawkish Federal Reserve bets and raising concerns about an economic contraction in 2023.

U.S. personal consumption expenditures (PCE) data due later in the day will provide further evidence on whether inflation is continuing to moderate.

China's Shanghai Composite index slipped 0.28 percent to 3,045.87 as the country battled a wave of infections that has hit the elderly hard. Hong Kong's Hang Seng index dropped 0.44 percent to 19,593.06.

New estimates by an analytics company revealed the country may already be recording over a million new infections and at least 5,000 deaths every day.

Japanese shares fell sharply as data showed core consumer inflation in the country hit a fresh 40-year high in November.

Meanwhile, minutes of the BOJ's October policy meeting released today showed that some policymakers called for the need to continue checking how a future exit from ultra-low interest rates could affect markets and households' mortgage rates.

The Nikkei average fell 1.03 percent to 26,235.25, taking its weekly decline to 4.69 percent. The broader Topix index closed 0.54 percent lower at 1,897.94, with chip-related stocks and shippers pacing the declines.

Tokyo Electron gave up 3.7 percent and Advantest plunged 4.5 percent after Micron Technology Inc issued a dismal outlook, announced layoffs and cost-cutting measures.

Utility Kansai Electric Power jumped 5.3 percent after the government announced a new policy to maximize use of nuclear energy.

Seoul stocks tumbled on expectations of further rate hikes in the United States. The Kospi average slumped 1.83 percent to 2,313.69, tracking steep falls on Wall Street overnight. Hyundai Motor, Samsung Electronics, SK Hynix and LG Energy Solution dropped 1-3 percent.

Australian markets ended notably lower, dragged down by banks, miners and energy stocks. The benchmark S&P/ASX 200 index slid 0.63 percent to 7,107.70 while the broader All Ordinaries index closed 0.65 percent lower at 7,287.80.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 ended down 0.25 percent at 11,494.96.

U.S. stocks fell sharply overnight and the dollar rose, as signs of a tight labor market and an upward revision to the U.S. Q3 growth rate heightened expectations of further Fed tightening.

The tech-heavy Nasdaq Composite tumbled 2.2 percent to its lowest closing level in well over a month, while the Dow dropped 1.1 percent and the S&P 500 shed 1.5 percent.