BEIJING — Asian stocks were mixed Friday after Wall Street declined following indications the Federal Reserve might raise interest rates higher than expected to cool inflation.
The Nikkei 225 NIK in Tokyo advanced 0.2%. The Shanghai Composite Index SHCOMP lost 0.1% while the Hang Seng HSI in Hong Kong gained 0.6%. Traders worry unusually large rate hikes this year by the Fed and central banks in Europe and Asia to stop inflation that is at multi-decade highs might tip the global economy into recession.
The president of the Federal Reserve Bank of St. Louis reaffirmed the Fed’s position in a presentation Thursday. James Bullard suggested the Fed’s key short-term lending rate may have to rise to between 5% and 7%. “The latest round of Fed speak reminded us that policymakers could remain very hawkish,” said Edward Moya of Oanda in a report. “The Fed may need to continue hiking beyond February.”