Asian Stocks Plunge Ahead of US FOMC Meeting

Jerome Powell, Fed Chair [Image source=Yonhap News]

[Asia Economy Reporter Kim Daehyun] Ahead of the opening of the U.S. Federal Open Market Committee (FOMC), major Asian stock markets plunged on the 25th.

According to Bloomberg on the day, the Shanghai Composite Index and the Shenzhen Composite Index closed down 2.58% and 3.31%, respectively.

Japan's Nikkei 225 fell 1.66%, South Korea's KOSPI dropped 2.56%, Taiwan's TAIEX declined 1.60%, and Australia's S&P/ASX 200 index decreased by 2.49%.

Concerns that the Federal Reserve's (Fed) monetary tightening pace could accelerate faster than expected due to high inflation rates ahead of the FOMC meeting held on the 25th and 26th heightened market anxiety. The Russia-Ukraine situation also intensified investors' risk-averse sentiment.

As of 4:52 PM Korea time on the day, U.S. stock futures such as the S&P 200 futures (-0.98%) and Nasdaq futures (-1.26%) also showed weakness.