Global Market Turmoil: Asian Shares Plummet Amid Fed's Hawkish Stance

Asian shares tumbled as global markets reacted to hawkish comments from the U.S. Federal Reserve, dimming prospects for a December rate cut. The market turmoil saw major indices in Asia and beyond experience significant losses, exacerbated by concerns over tech stock valuations and rising U.S. Treasury yields.

Asian markets faced a turbulent day on Friday, joining a global selloff triggered by hawkish statements from U.S. Federal Reserve officials. The prospect of a near-term rate cut dimmed as expectations for a December reduction plummeted, causing a notable retreat in stock indices worldwide.

Reacting to these developments, MSCI's broadest index of Asian shares outside Japan dropped 1.6%, following a steep decline on Wall Street. Investors appeared to reassess their expectations as the likelihood of a Fed rate cut in December diminished to just 51% from 63% the previous day. This change was influenced by persistent concerns over tech sector valuations and cautious remarks from Fed figures.

As European trading kicked off, indicators hinted at continued volatility. In Asia, major stock markets such as Japan and South Korea saw significant declines, with investor sentiments dampened further by weaker-than-expected Chinese economic data. Meanwhile, bond yields fluctuated, and the dollar slightly weakened against major currencies.

(With inputs from agencies.)