(Updates to market close)
By Summer Zhen
HONG KONG, March 8 (Reuters) - Hong Kong stocks slumped,
while China shares fell slightly on Wednesday after U.S. Federal
Reserve Chair Jerome Powell said the U.S. central bank will
likely need to raise interest rates more than expected.
** China's blue-chip CSI 300 Index edged down
0.36%, while the Shanghai Composite Index slid 0.06%.
** The Hang Seng Index dropped 2.35%, marking its
worst day in a month, while the Hang Seng China Enterprises
Index tumbled 2.68%.
** Broader Asian stock markets also sank as Powell's
hawkish comments on Tuesday raised the possibility of the Fed
returning to large rate hikes to tackle sticky inflation.
** "With central banks determined to defend their
credibility, rates are likely to rise higher and stay at
restrictive levels for longer than markets currently expect,
particularly in the U.S. and the UK," said Matthew Quaife, head
of Multi-Asset Investment Management, Asia at Fidelity
International.
** "We believe that this cumulative tightening will lead to
slower growth and, ultimately, to cyclical recessions in the
U.S., Europe and the UK later this year or next year."
** Intensifying China-U.S. tensions also weighed on market
sentiment.
** China said on Wednesday it was "seriously concerned" by
Taiwan President Tsai Ing-wen's "transit" plans and had asked
Washington for clarification, amid reports she will meet U.S.
House Speaker Kevin McCarthy in the United States.
** Meanwhile, the White House backed legislation, introduced
on Tuesday by a dozen senators, to give the administration new
powers to ban Chinese-owned video app TikTok and other
foreign-based technologies if they pose national security
threats.
** Hong Kong-listed tech giants dived 3.2%, with
Alibaba and Tencent down 3.2% and 2%,
respectively.
** On Tuesday, China said it will set up a new financial
regulatory body to consolidate oversight, which analysts said
was aimed at closing loopholes with multiple agencies monitoring
different aspects of trillions of dollars worth of its financial
services industry.
** Among sectors,education , non-ferrous metals and banking lost 2.5%, 0.9% and 0.5%,
respectively. The telecom index jumped 2.4% to top
the gains.
(Reporting by Summer Zhen; Editing by Savio D'Souza and
Subhranshu Sahu)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.