Hong Kong's benchmark Hang Seng Index lost over 1.9% in opening trade to hit 2011 lows after the U.S. Federal Reserve raised interest rates by 0.75% and indicated they could be hit as high as 4.6% next year.
XPeng shares nosedived 13% at the open, while Nio shed over 8%. Li Auto shares lost over 6%. Higher interest rates mean buying cars would take more money out of a consumer’s pocket in terms of monthly installments.
The Bank of Japan is set to announce its policy decision today.
Company News: China’s leading online travel service provider Trip.com Group Limited reported a second-quarter profit of RMB 43 million ($6 million) compared to a net loss of RMB 659 million ($93.5 million) a year earlier.
China Evergrande Group said on Wednesday it was mulling transferring some assets to its property unit in order to settle some of the unit's debt payments, reported Reuters.
Top Gainers and Losers: WuXi Biologics (Cayman) Inc. and Galaxy Entertainment Group Limited were the top losers among the Hang Seng constituents, having shed over 3.5%. There were no gainers on Thursday.
Global News: U.S. futures traded in the red on Thursday morning Asia session. The Dow Jones futures were down 0.7% while the Nasdaq futures lost 1.21%. The S&P 500 futures shed 0.93%.
Elsewhere in Asia, Australia’s ASX 200 remained closed on Thursday. Japan’s Nikkei 225 was down 1.16% while China’s Shanghai Composite index lost 0.15%. South Korea’s Kospi was down 1.49%.
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