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Investing.com– Asian stock markets fell further on Friday and were headed for deep weekly losses as rising interest rates across the globe threatened to destabilize economic growth and weighed on risk appetite.
South Korea’s index was among the worst performers for the day, down 1.8%, while Hong Kong’s shed 1.1%. Hong Kong stocks were also the worst performers this week, losing 4.2% as their high exposure to technology saw them bear the brunt of selling pressure.
Sentiment towards regional stock markets was decimated this week after the raised interest rates and flagged a more aggressive stance towards combating inflation.
The central bank is now willing to risk headwinds to economic growth and the labor market from rising rates, indicating that more steep rate hikes are on the horizon. The move boosted the dollar and Treasury yields, drawing capital away from risk-driven assets.
Rising U.S. interest rates have been a key source of pressure on Asian stock markets this year, drying up the high amounts of liquidity enjoyed through the last two years. Rate hikes by other major central banks, including the and the , have also weighed.
The Fed’s move put Asian stock markets on course for a fourth straight week of losses, mirroring a similar trend on Wall Street. Technolo