Asian Stocks Mostly Fall on Iran Tensions and Rate Hike Fears

(Central News Agency, Hong Kong, 11th, Combined Foreign News) Asian stock markets mostly fell today, weighed down by renewed concerns over the situation in Iran and negative factors such as the prospect of a US interest rate hike.

According to AFP, the latest US economic data showed that while inflation in May was broadly in line with market expectations, the inflation rate still hit a new high in over three years due to soaring fuel costs caused by the war in Iran.

US job growth last month exceeded expectations, raising market expectations for the first interest rate hike by the Federal Reserve (Fed) since 2023.

Market focus now turns to the Fed's policy meeting next week. Although new Chairman Kevin Warsh is unlikely to raise rates at his first meeting, observers say futures markets indicate the Fed could raise rates before the end of the year.

Neil Wilson, investment strategist at Saxo Bank, noted: "Overall, (the inflation report) wasn't as bad as feared, and core inflation was slightly milder than expected, so the market is taking this as a positive signal."

The prospect of rate hikes once again hit tech stocks hard, dragging Wall Street lower. The Nasdaq fell 2%, and the S&P 500 also dropped nearly 2%.

Asian markets followed Wall Street's lead today, with more decliners than advancers, but the moves were more stable after three days of sharp volatility.

Markets in Hong Kong, Shanghai, Sydney, Wellington, Taipei, Manila, and Jakarta all closed lower. Markets in Tokyo, Seoul, and Singapore closed slightly higher. (Editor: Liu Shuqin) 1150611