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Overseas Trading: Asian Stocks Slump on Rate Hike Fears

Asian stocks dropped with oil as traders look ahead to next month's Federal Open Market Committee (FOMC) meeting

May 24, 2016 at 8:41 AM
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Asian markets finished mostly lower, as crude oil slipped during trading hours and the growing possibility of an interest rate hike out of the U.S. continued to weigh. In Japan, the Nikkei gave up 0.9%, with the yen strengthening against the dollar despite Monday's disappointing economic data. Even so, Japan's Finance Minister Taro Aso said there are no plans to devalue the currency. 

Elsewhere, China's Shanghai Composite finished the session 0.8% lower, and South Korea's Kospi dropped 0.9%. Hong Kong's Hang Seng bucked the trend, adding 0.1% for the day.

Stocks in Europe are higher at midday, after a choppy start to the session. Oil prices turned positive and the euro weakened, giving exporters a boost. The German DAX is up 1.1%, despite a key measure showing a drop in economic sentiment in May. London's FTSE 100 is 0.8% higher, and the French CAC 40 has the biggest lead, up 1.4%. 

overseas stocks may 24

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