Asian bourses dip on rate hike hint

Asian stocks tumbled on Wednesday as regional currencies weakened following comments overnight by Federal Reserve chair Jerome Powell that raise the possibility the US central bank would resume large-scale interest rate hikes to tame sticky inflation.

MSCI’s broadest index of Asia-Pacific shares outside Japan was 1.69% lower at 514.71. Hong Kong’s Hang Seng Index fell 2.35%, set for its worst day since late January, as shares in China slipped 0.42%. Australia’s S&P/ASX 200 Index fell nearly 0.77%, while the Stock Exchange of Thailand (SET) Index closed 0.37% lower at 1,612.60.

Japan’s Nikkei was one of few gainers in Asia, up nearly 0.5% as a weakening yen buoyed exporters.

In testimony to Congress, Mr Powell said a string of stronger than expected US economic data indicated…