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Asian markets sink after dovish Fed minutes

Ticker board at Tokyo Stock Exchange

Asian markets traded with sizeable losses on Thursday after minutes from the Federal Reserve's late July meeting took investors by surprise, with the policy committee suggesting weak inflation could hold them back from raising interest rates.

Minutes from the Federal Reserve's (Fed) July 28-29 meeting were slightly more dovish than markets expected, with members of the monetary-policy setting committee concerned about weak inflation, raising the risk that the first interest rate hike will come later than September, the timing broadly anticipated by markets.

Japan's benchmark Nikkei 225 index fell 0.48% to 20,125.15 points within the first hour of trade, while Tokyo's broader Topix gauge moved down 0.52% to 1,639.83 points.

Hong Kong's benchmark Hang Seng index dived 1.08% to 22,923.30 points shortly after the Chinese markets opened, and mainland China's benchmark Shanghai Composite slid 0.88% to 3,760.81 points at the same time.

Korea's benchmark Kospi index fell 0.80% to 1,923.91 points on Thursday morning in Seoul.

The benchmark Australian S&P/ASX 200 index tumbled 1.21% to 5,315.10 points in Sydney, as resource and financial stocks were weighed down by a lack of risk sentiment on Thursday.

New Zealand's benchmark S&P/NZX 50 index crept 0.08% higher to 5,754.68 points this afternoon in Wellington.

 

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