Analysts cautious as shadow of recession looms over markets

MARKETS shed risk on Thursday (Sep 22), after investors were caught off guard by the US Federal Reserve’s hawkishness as the central bank raised its interest rate policy by 75 basis points overnight.

Most Asian stock markets closed lower, with Singapore’s Straits Times Index (STI) staying in the red for most of the day before closing up 0.04 per cent. Hong Kong’s Hang Seng index declined 1.6 per cent; both Japan’s Nikkei 225 index and South Korea’s Kospi declined 0.6 per cent.

At its close on Wednesday, the broad-based S&P 500 index shed 1.7 per cent to 3,789.93. The tech-heavy Nasdaq Composite index declined 1.8 per cent to 11,220.19.