Asia stocks decline amid worries over US rate hikes, Russia

BEIJING (AP) — Asian stocks followed Wall Street lower Wednesday after a Federal Reserve official's comments fueled expectations of more aggressive interest U.S. rate hikes and the White House announced more sanctions on Russia.

Market benchmarks in Shanghai, Tokyo, Hong Kong and Sydney retreated.

Wall Street's S&P 500 index tumbled 1.3% after Fed Governor Lael Brainard said reining in inflation that is at a four-decade high is of “paramount importance.” Brainard said the Fed is set to keep raising rates after its March hike, its first in four years, and might decide at its May meeting to reduce bond holdings “at a rapid pace.”

The White House said Western governments will ban new investmen t in Russia following evidence its soldiers deliberately killed civilians in Ukraine. The U.S. Treasury said President Vladimir Putin's government will be blocked from paying debts with dollars from American financial institutions, potentially increasing the risk of a default.

European governments have resisted appeals to boycott Russian gas, Putin's biggest export earner, due to the possible impact on their economies.

However, the EU’s executive branch has proposed a ban on coal imports from Russia in the first sanction of its energy industry by the 27-nation bloc. The coal imports amount to an estimated 4 billion euros ($4.4 billion) per year.

“It’s hard to be particularly optimistic” about the war, “but we live in hope,” said Craig Orlam of Oanda in a report. “And it seems investors do too” despite inflation, rate hikes and high commodity prices.

The Shanghai Composite Index lost 0.2% to 3,275.45 and the Nikkei 225 in Tokyo sank 1.7% to 27,308.86. The Hang Seng in Hong Kong fell 1.4% to 22,181.86.

The Kospi in Seoul declined 0.8% to 2,736.36 and Sydney's S&P-ASX 200...