The Fed shifted the outlook on tightening from short and sharp to long and high, putting to rest any thought of a near-term pause, hitting sentiment.
The market was also weighed down by a private-sector business survey showing China's services activity contracted again in October amid fresh COVID-19 outbreaks.
In the latest fallout, electric vehicle maker NIO said it suspended production in the eastern city of Hefei amid rising COVID-19 cases and Yum China, operator of the KFC and Pizza Hut chains, said it was temporarily closing or reducing services at over 1,000 of its restaurants in China.
China recorded 3,200 daily local COVID-19 cases for Nov. 2, the highest in two-and-a-half months, official data showed.
In Hong Kong, stocks fell across the board, as the city's central bank raised rates following the Fed move.
Most sectors fell in China too, but the tech-focused STAR Market rose 1.1%, while defence stocks remained buoyant.
Hong Kong, China stocks drop as Fed rate hike, COVID kill rally
Image: REUTERS/Thomas Peter
Hong Kong and China stocks fell on Thursday after a two-day rally, as a fresh U.S. interest rate hike and rising COVID-19 cases in China fanned concerns about a further slowdown in global economic growth.
The Hang Seng index dropped 3.1% to 15,339.49, wiping out Wednesday's gains. The Hong Kong China Enterprises Index lost 3.5%.
In China, the blue-chip CSI300 index fell 0.8% to 3,647.90, while the Shanghai Composite Index lost 0.2% to 2,997.81.
Markets were broadly weak in Asia, tracking overnight Wall Street losses, after the U.S. Federal Reserve raised interest rates by three-quarters of a percentage point again.
Chinese cities double down on curbs as Covid-19 outbreaks widen
The Fed shifted the outlook on tightening from short and sharp to long and high, putting to rest any thought of a near-term pause, hitting sentiment.
The market was also weighed down by a private-sector business survey showing China's services activity contracted again in October amid fresh COVID-19 outbreaks.
In the latest fallout, electric vehicle maker NIO said it suspended production in the eastern city of Hefei amid rising COVID-19 cases and Yum China, operator of the KFC and Pizza Hut chains, said it was temporarily closing or reducing services at over 1,000 of its restaurants in China.
China recorded 3,200 daily local COVID-19 cases for Nov. 2, the highest in two-and-a-half months, official data showed.
In Hong Kong, stocks fell across the board, as the city's central bank raised rates following the Fed move.
Most sectors fell in China too, but the tech-focused STAR Market rose 1.1%, while defence stocks remained buoyant.
China passes new women's protection law, revamped for first time in decades
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Trending
Related articles
Latest Videos