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Asia-Pacific markets are set to extend their losses on Thursday after minutes from the U.S. Federal Reserve’s July meeting showed concerns over inflation lingered, which could lead to more rate hikes.
“With inflation still well above the Committee’s longer-run goal and the labor market remaining tight, most participants continued to see significant upside risks to inflation, which could require further tightening of monetary policy,” the meeting summary stated.
The Federal Funds rate currently stands at 5.25% to 5.5%, the highest in 22 years.
In Australia, futures for the S&P/ASX 200 point to a lower open, at 7,118 compared to the last close of 7,195.2. The country will release its unemployment rate for July.
Japan’s Nikkei 225 is also set to fall, with the futures contract in Chicago at 31,645 and its counterpart in Osaka at 31,670 against the index’s last close of 31,766.82. The country will see its trade balance for July out today as well.
Futures for Hong Kong’s Hang Seng index stood at 18,064, pointing to a weaker open compared to the HSI’s close of 18,329.3.
Overnight in the U.S., all three major indexes notched a second straight losing session as the Dow Jones Industrial Average dropped 0.52%, while the S&P 500 dipped 0.76%. Meanwhile, the Nasdaq Composite saw the largest loss, falling 1.15%.
— CNBC’s Hakyung Kim and Alex Harring contributed to this report