Tokyo led a rout of Asian shares Thursday, <a href="http://www.wionews.com/business-economy/us-federal-reserve-hikes-interest-rates-wall-street-stocks-tumble-185385">mirroring big losses on Wall Street </a>after the Fed defied unprecedented pressure from Donald Trump and raised interest rates, sparking fears the move could choke economic growth.

The Nikkei plunged to a 15-month low as investors took fright over the pace of monetary tightening, with a slump triggered by the Dow's fall to its lowest level of 2018 gathering pace.

The US Federal Reserve raised rates for the fourth time this year - as expected - but markets reacted badly after chairman Jerome Powell said the bank would not shift course on reducing its balance sheet.

Investors had hoped for a less aggressive approach amid concern that global growth is slowing, but Powell played down the impact of recent market turmoil on the US economy.

"They think the Fed has completely misjudged the situation and now it's just a matter of just trying to find an exit while you can," said Kyle Rodda, a market analyst at IG Group in Melbourne.

"We're probably entering a stage now where markets have got it (in) their head that we're preparing for quite sustained downside going into 2019."

The Fed now projects only two interest rate increases, down from three previously, as it trimmed its forecast for US growth and inflation.

Stephen Innes, head of Asia-Pacific trade at OANDA, said the "Fed delivered a dovish hike, but clearly, there wasn't enough affirmation in the statement that the Fed was close to pausing or ending their interest rate hike cycle sooner than expected".

Some analysts were puzzled by investors' reaction.

Ray Attrill, strategist at National Australia Bank, said the post-Fed sentiment was "a bit surprising" given the bank stressed a "gradual" pace of rate hikes next year.

But the spillover from the rate hike continued to rattle investors in Asia Thursday, deepening concern over global growth prospects which are already facing headwinds from President Trump's trade war with Beijing, a slowing Chinese economy, and potential turmoil from Britain quitting the European Union.

Japanese stocks were given little support by the Bank of Japan, which left rates unchanged with the threat of trade protectionism and slowing global growth casting a pall over the export-dependent economy.

A strong yen also put downward pressure on stocks, with the dollar falling below 112 yen.

Nissan dropped more than two per cent after a Japanese court rejected prosecutors' request to extend the detention of former Nissan chairman Carlos Ghosn after his arrest for financial misconduct.

Shanghai was down more than 0.5 per cent, even after the People's Bank of China said it would supply lower-cost liquidity for up to three years to banks willing to lend more to small companies, as policymakers aim to shore up the flagging economy.

Sydney closed more than one per cent lower while Hong Kong was also down in afternoon trade.

Wednesday's quarter-point hike in the US came after Trump repeatedly demanded on Twitter the bank hold rates, in what was regarded as the most public assault on the Fed's independence in decades.

The US president has cited the dollar's strength as a reason the Fed should stop raising interest rates because higher rates tend to attract foreign capital to a currency.

Both oil contracts slid Thursday, reversing strong gains from a day earlier on concerns about growth and US oversupply, and tracking equity losses.

A smaller than expected fall in US crude stockpiles added to supply glut fears triggered earlier this week by forecasts of increasing shale oil production.

Traders are also wary of prospects of softening global growth.

"A tepid global economic growth outlook also weighed on oil prices as the demand for energy is probably going to remain subdued," said Margaret Yang Yan, from CMC Markets in Singapore.

Tokyo led a rout of Asian shares Thursday, mirroring big losses on Wall Street after the Fed defied unprecedented pressure from Donald Trump and raised interest rates, sparking fears the move could choke economic growth.

Tokyo led a rout of Asian shares Thursday, mirroring big losses on Wall Street after the Fed defied unprecedented pressure from Donald Trump and raised interest rates, sparking fears the move could choke economic growth. The Nikkei plunged to a 15-month low as investors took fright over the pace of monetary tightening, with a slump triggered by the Dow's fall to its lowest level of 2018 gathering pace. The US Federal Reserve raised rates for the fourth time this year - as expected - but markets reacted badly after chairman Jerome Powell said the bank would not shift course on reducing its balance sheet. Investors had hoped for a less aggressive approach amid concern that global growth is slowing, but Powell played down the impact of recent market turmoil on the US economy. "They think the Fed has completely misjudged the situation and now it's just a matter of just trying to find an exit while you can," said Kyle Rodda, a market analyst at IG Group in Melbourne. "We're probably entering a stage now where markets have got it (in) their head that we're preparing for quite sustained downside going into 2019." The Fed now projects only two interest rate increases, down from three previously, as it trimmed its forecast for US growth and inflation. Stephen Innes, head of Asia-Pacific trade at OANDA, said the "Fed delivered a dovish hike, but clearly, there wasn't enough affirmation in the statement that the Fed was close to pausing or ending their interest rate hike cycle sooner than expected". Some analysts were puzzled by investors' reaction. Ray Attrill, strategist at National Australia Bank, said the post-Fed sentiment was "a bit surprising" given the bank stressed a "gradual" pace of rate hikes next year. But the spillover from the rate hike continued to rattle investors in Asia Thursday, deepening concern over global growth prospects which are already facing headwinds from President Trump's trade war with Beijing, a slowing Chinese economy, and potential turmoil from Britain quitting the European Union. Japanese stocks were given little support by the Bank of Japan, which left rates unchanged with the threat of trade protectionism and slowing global growth casting a pall over the export-dependent economy. A strong yen also put downward pressure on stocks, with the dollar falling below 112 yen. Nissan dropped more than two per cent after a Japanese court rejected prosecutors' request to extend the detention of former Nissan chairman Carlos Ghosn after his arrest for financial misconduct. Shanghai was down more than 0.5 per cent, even after the People's Bank of China said it would supply lower-cost liquidity for up to three years to banks willing to lend more to small companies, as policymakers aim to shore up the flagging economy. Sydney closed more than one per cent lower while Hong Kong was also down in afternoon trade. Wednesday's quarter-point hike in the US came after Trump repeatedly demanded on Twitter the bank hold rates, in what was regarded as the most public assault on the Fed's independence in decades. The US president has cited the dollar's strength as a reason the Fed should stop raising interest rates because higher rates tend to attract foreign capital to a currency. Both oil contracts slid Thursday, reversing strong gains from a day earlier on concerns about growth and US oversupply, and tracking equity losses. A smaller than expected fall in US crude stockpiles added to supply glut fears triggered earlier this week by forecasts of increasing shale oil production. Traders are also wary of prospects of softening global growth. "A tepid global economic growth outlook also weighed on oil prices as the demand for energy is probably going to remain subdued," said Margaret Yang Yan, from CMC Markets in Singapore.

Asian markets sink after US Federal Reserve hikes rates

Asian stocks plunged Tuesday after a<a href="http://www.wionews.com/business-economy/wall-street-crash-dow-jones-plunges-to-historic-low-sp-500-nasdaq-hit-31929"> record-breaking loss on Wall Street</a>, extending a global rout as panicked investors fret over rising US borrowing costs and take profits after months of market euphoria.

Tokyo led a collapse throughout the region, briefly diving almost seven percent before closing down 4.7 per cent. Hong Kong was down more than four percent and Sydney and Singapore each sank three per cent.

Other assets were also hammered, with a slump in oil prices scything energy firms, while higher-yielding currencies have been hit by a flight to safe havens.

Dealers tracked their colleagues in New York, where the Dow suffered its worst points fall in history and wiped out all its 2018 gains, while the S&amp;P 500 also took a beating to sit down for the year.

Global stocks have enjoyed months of surges fuelled by optimism over the US economy, corporate earnings and the global outlook.

The winning streak was fanned by the passage of Donald Trump&#39;s massive tax cuts bill in December, which led several big-name firms to announce pay rises and bonuses.

At the same time the economy continues to improve across the board.

Volatility warning

But while traders have been piling into equities, pushing many global indexes to record or multi-year highs, there has been growing concern on trading floors about elevated US Treasury bond yields -- at four-year highs -- and the likelihood of fresh Federal Reserve interest rate rises.

Selling kicked in on Friday when official data showed another jump in US jobs and a rally in wage growth, fuelling fears that inflation will surge this year and the Fed will be forced to raises rates more than expected.&nbsp;

The so-called Vix volatility index more than doubled in US trade on Monday.

Among other Asian markets Seoul lost 1.5 percent, Taipei sank five percent, Manila plunged 1.1 percent and Shanghai gave up 3.4 percent. Mumbai was 0.9 percent lower, Bangkok plunged 2.4 percent and Jakarta and Kuala Lumpur were also well down.

&quot;How far it goes down? You tell me,&quot; Steven Wieting, global chief investment strategist at Citigroup, told Bloomberg TV. You cannot keep up this speed of decline &quot;day after day after day without finding some sort of bottom rather quickly&quot;, he added, predicting further volatility.

Energy firms were among the biggest victims, with Inpex losing more than four percent in Tokyo, while CNOOC, PetroChina and Sinopec were down between five and 6.5 percent in Hong Kong. Sydney-listed Woodside Petroleum was off nearly four three percent and BHP shed 2.7 percent.

Tech giants were also targeted after disappointing earnings reports from Apple and Google parent Alphabet. Tencent, Sharp and Samsung all got a bloody nose.

On currency markets the yen, considered a go-to unit in times of turmoil and uncertainty, climbed against the dollar. The greenback, however, rose against the pound and euro thanks to the rate rise expectations.

Bitcoin hammered

The commodity-dependent Australian dollar tanked one percent against its US counterpart, while South Korea&#39;s won, Indonesia&#39;s rupiah and the Mexican peso were among the other big losers.

And bitcoin continued its spiral downwards after some banks banned their customers from buying it with credit cards. The news is the latest to hit the cryptocurrency after recent crackdowns by authorities in India, South Korea, China and Russia.

The unit was down more than 20 percent to a three-month low below $6,000 -- less than a third of its value near $20,000 in December, which sparked warnings of a bubble.

However, while trading floors are awash with red, analysts remained upbeat, saying the selling represented a much-needed correction.

Peter Garnry, head of equity strategy at Saxo Bank, who last month predicted a pullback, said: &quot;We believe this is a healthy correction in equity markets but also likely short-lived as the higher US 10-year yield is still not in the danger zone.&quot;

And Sean Fenton, a portfolio manager at Tribeca Investment Partners in Sydney, said: &quot;I actually think there&#39;s buying opportunities, maybe not today, but through this week as this sell-off exacerbates.&quot;

Key figures around 0710 GMT

Tokyo - Nikkei 225: DOWN 4.7 percent at 21,610.24 (close)

Hong Kong - Hang Seng: DOWN 4.5 percent at 30,789.12

Shanghai - Composite: DOWN 3.4 percent at 3,370.65 (close)

Euro/dollar: DOWN at $1.2370 from $1.2373 at 2200 GMT

Pound/dollar: DOWN at $1.3955 from $1.3958

Dollar/yen: DOWN at 108.93 yen from 109.13 yen

Oil - West Texas Intermediate: DOWN 66 cents at $63.49 per barrel

Oil - Brent North Sea: DOWN 67 cents at $66.95 per barrel

New York - DOW: DOWN 4.6 percent at 24,345.75 (close)

New York - S&amp;P 500: DOWN 4.1 percent at 2,648.94 (close)

London - FTSE 100: DOWN 1.5 percent at 7,334.98 (close)

Dealers tracked their colleagues in New York, where the Dow suffered its worst points fall in history, wiping out all its 2018 gains

Asian stocks plunged Tuesday after a record-breaking loss on Wall Street, extending a global rout as panicked investors fret over rising US borrowing costs and take profits after months of market euphoria. Tokyo led a collapse throughout the region, briefly diving almost seven percent before closing down 4.7 per cent. Hong Kong was down more than four percent and Sydney and Singapore each sank three per cent. Other assets were also hammered, with a slump in oil prices scything energy firms, while higher-yielding currencies have been hit by a flight to safe havens. Dealers tracked their colleagues in New York, where the Dow suffered its worst points fall in history and wiped out all its 2018 gains, while the S&P 500 also took a beating to sit down for the year. Global stocks have enjoyed months of surges fuelled by optimism over the US economy, corporate earnings and the global outlook. The winning streak was fanned by the passage of Donald Trump's massive tax cuts bill in December, which led several big-name firms to announce pay rises and bonuses. At the same time the economy continues to improve across the board. Volatility warning But while traders have been piling into equities, pushing many global indexes to record or multi-year highs, there has been growing concern on trading floors about elevated US Treasury bond yields -- at four-year highs -- and the likelihood of fresh Federal Reserve interest rate rises. Selling kicked in on Friday when official data showed another jump in US jobs and a rally in wage growth, fuelling fears that inflation will surge this year and the Fed will be forced to raises rates more than expected. The so-called Vix volatility index more than doubled in US trade on Monday. Among other Asian markets Seoul lost 1.5 percent, Taipei sank five percent, Manila plunged 1.1 percent and Shanghai gave up 3.4 percent. Mumbai was 0.9 percent lower, Bangkok plunged 2.4 percent and Jakarta and Kuala Lumpur were also well down. "How far it goes down? You tell me," Steven Wieting, global chief investment strategist at Citigroup, told Bloomberg TV. You cannot keep up this speed of decline "day after day after day without finding some sort of bottom rather quickly", he added, predicting further volatility. Energy firms were among the biggest victims, with Inpex losing more than four percent in Tokyo, while CNOOC, PetroChina and Sinopec were down between five and 6.5 percent in Hong Kong. Sydney-listed Woodside Petroleum was off nearly four three percent and BHP shed 2.7 percent. Tech giants were also targeted after disappointing earnings reports from Apple and Google parent Alphabet. Tencent, Sharp and Samsung all got a bloody nose. On currency markets the yen, considered a go-to unit in times of turmoil and uncertainty, climbed against the dollar. The greenback, however, rose against the pound and euro thanks to the rate rise expectations. Bitcoin hammered The commodity-dependent Australian dollar tanked one percent against its US counterpart, while South Korea's won, Indonesia's rupiah and the Mexican peso were among the other big losers. And bitcoin continued its spiral downwards after some banks banned their customers from buying it with credit cards. The news is the latest to hit the cryptocurrency after recent crackdowns by authorities in India, South Korea, China and Russia. The unit was down more than 20 percent to a three-month low below $6,000 -- less than a third of its value near $20,000 in December, which sparked warnings of a bubble. However, while trading floors are awash with red, analysts remained upbeat, saying the selling represented a much-needed correction. Peter Garnry, head of equity strategy at Saxo Bank, who last month predicted a pullback, said: "We believe this is a healthy correction in equity markets but also likely short-lived as the higher US 10-year yield is still not in the danger zone." And Sean Fenton, a portfolio manager at Tribeca Investment Partners in Sydney, said: "I actually think there's buying opportunities, maybe not today, but through this week as this sell-off exacerbates." Key figures around 0710 GMT Tokyo - Nikkei 225: DOWN 4.7 percent at 21,610.24 (close) Hong Kong - Hang Seng: DOWN 4.5 percent at 30,789.12 Shanghai - Composite: DOWN 3.4 percent at 3,370.65 (close) Euro/dollar: DOWN at $1.2370 from $1.2373 at 2200 GMT Pound/dollar: DOWN at $1.3955 from $1.3958 Dollar/yen: DOWN at 108.93 yen from 109.13 yen Oil - West Texas Intermediate: DOWN 66 cents at $63.49 per barrel Oil - Brent North Sea: DOWN 67 cents at $66.95 per barrel New York - DOW: DOWN 4.6 percent at 24,345.75 (close) New York - S&P 500: DOWN 4.1 percent at 2,648.94 (close) London - FTSE 100: DOWN 1.5 percent at 7,334.98 (close)

Asian markets plunge as Wall Street rout spreads

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Asian markets sink after US Federal Reserve hikes rates

Asian markets plunge as Wall Street rout spreads