Asian shares slide on Wall Street drop that ended last week

TOKYO (AP) — Asian shares declined Monday after the head of the U.S. Federal Reserve indicated high interest rates will continue for some time to curb inflation.

The plunge in early trading in Asia paralleled the drop on Wall Street, where the Dow Jones Industrial Average ended the week sinking more than 1,000 points. A slowdown in the U.S. is damaging to Asia’s export-reliant economies.

The message from Federal Reserve Chair Jerome Powell in a speech Friday had been expected, though some had wished for words that weren't quite so clear.

“The market apparently was looking for something a little more neutral. After all the talk of a ‘pause’ and ‘pivot’, none of which ever made any sense with a Fed that has said several times it will keep hiking rates even if it means some economic pain, we are back to square one with a Fed outlook to keep tightening,” said Clifford Bennett, chief economist at ACY Securities.

“The Fed was always going to keep raising rates aggressively, but the market decided to price in a slowing in hikes, and even a reversal.”

Japan's benchmark Nikkei 225 dipped 2.8% in morning trading to 27,831.06. Australia's S&P/ASX 200 dropped 2.2% to 6,946.30. South Korea's Kospi slipped 2.2% to 2,425.70. Hong Kong's Hang Seng slid 1.1% to 19,949.62, while the Shanghai Composite edged down 0.5% to 3,220.04.

“The risk-off mood is playing out in the Asia’s session today as well, as bearish sentiments follow through with the sell-off in Wall Street to end last week while U.S. futures continue to suggest no reprieve into the new week,” said Yeap Jun Rong, market strategist at IG in Singapore.

Also weighing on regional sentiments are China's economic data over the weekend, which seem to indicate a strong recovery will take time. China's January-July industrial...