Updated on
Summary Asian stock markets fell on Wednesday as China's rate hike prompted selling in emerging equities. The Chinese stock market fell modestly on Wednesday, as investors largely took news of another interest rate increase in China in stride.
The Shanghai composite index, the main market gauge for stocks in mainland China, fluctuated throughout the day, venturing into positive territory at times, before sagging 0.9 percent. Singapores Straits Times Index .FTSTI lost 1 percent on the day, setting a year-low. Indonesias main index fell over 2 percent at one point to its lowest in more than one week. Philippine and Thai stocks hit one-week low. Volumes were relatively brisk in Singapore, with turnover of 1.5 times its 30-day average. Turnover of Indonesia and Thailand both fell to 0.8 times their 30-day average. As in broader Asia, inflation remains a major risk for Southeast Asia this year, with food and fuel prices continuing to rise, prompting market investors to expect more rate hikes by policymakers in the region this year.
