Asian markets fall as Fed rate hike signals lift yields

Stock markets across Asia slid on Thursday, according to Mettis Global, as losses on Wall Street and elevated US Treasury yields dampened appetite for risk. Traders reacted to Federal Reserve signals that another rate increase could come this year. Japan's Nikkei 225 lost 1.12%, the Topix shed 0.8%, and South Korea's Kospi fell 2.04%.

Minutes from the Fed's latest meeting showed that most policymakers favoured a further increase before year-end, given inflation running higher than the 2% goal, as CNBC reported. The document, however, gave no firm timetable, and officials stressed that future decisions depend on incoming data. Australia's S&P/ASX 200 dropped 0.64%, China's CSI 300 eased 0.43%, and Hong Kong's Hang Seng Index slipped 0.69%.

Bond yields at higher levels have hurt rate-sensitive stocks over recent weeks, with US industrial shares among the weakest performers this week. Market sentiment still draws support from earnings expectations, as FactSet forecasts blended earnings expansion of close to 30% for the S&P 500 in the third quarter. Attention now turns to PepsiCo's earnings release, which lands ahead of the American session, along with weekly jobless claims.