Asian stocks mixed after Wall St falls on Fed rate hike hint

BEIJING (AP) — Asian stock markets were mixed Thursday after the Federal Reserve indicated it might ease off economic stimulus earlier than previously thought.

Tokyo fell while Shanghai and Hong Kong gained after Fed policymakers estimated their benchmark rate would rise twice by late 2023, earlier than a previous forecast of no rate hikes before 2024. The Fed also indicated it sees the U.S. economy improving faster than expected.

On Wall Street, the benchmark S&P 500 index fell 0.5% on Wednesday after Fed projections showed some of its board members expect short-term interest rates to rise by half a percentage point by late 2023. Ultra-low rates from the Fed and other central banks have propelled a global stock market rebound from last year's plunge amid the coronavirus pandemic.

“The Fed may have delivered a more hawkish message for markets than many would have expected,” Yeap Jun Rong of IG said in a report. Still, Yeap said, differing views among board members suggests “much will still depend on how the economic recovery will play out.”

The Nikkei 225 in Tokyo lost 1.1% to 28,958.46 while the Shanghai Composite Index rose 0.2% to 3,524.31. Hong Kong's Hang Seng added 0.3% to 28,516.97.

The Kospi in Seoul sank 0.4% to 3,264.14 and India's Sensex opened down 0.2% at 52,398.65.

Australia's S&P-ASX 200 shed 0.4% to 7,370.20 after the government reported employment rose by 115,200 in May, up 8.1% from its low a year earlier.

New Zealand and Jakarta declined while Singapore and Bangkok advanced.

The Fed's announcement Wednesday reflected growing confidence in the U.S. economy as more people are vaccinated against the coronavirus and business activity revives.

Investors have worried the Fed and other central banks might feel pressure to withdraw stimulus to cool...