Asia stocks fall after Fed says more US rate hikes likely

BEIJING (AP) — Asian stock markets tumbled Thursday after the Federal Reserve added to recession fears by saying it wasn't finished raising U.S. interest rates to cool inflation.

Hong Kong's benchmark lost 2.9%. Shanghai and Sydney also followed Wall Street lower after the Fed on Wednesday raised its key rate to a 15-year high.

Oil prices declined while the euro stayed below 99 cents.

Wall Street's benchmark S&P 500 index plunged 2.5% after the Fed raised its short-term lending rate by 0.75 percentage points, three times its usual margin, for a fourth time this year.

Fed Chair Jerome Powell reinforced expectations of more rate hikes by saying “we have a ways to go.” He indicated the level that is high enough to bring down inflation looks higher than it did in September but gave no target.

“Recession risks are rising, but that is the price the Fed is prepared to pay to get inflation under control,” said James Knightley, Padhraic Garvey and Chris Turner of ING in a report.

The Hang Seng in Hong Kong fell to 15,369.72 and Sydney's S&P-ASX 200 sank 1.8% to 6,857.90.

The Shanghai Composite Index lost 0.3% to 2,993.37 and the Kospi in Seoul rose 0.1% to 2,337.45. Japanese markets were closed for a holiday.

India's Sensex fell less than 0.1% at 60,850.09. New Zealand and most Southeast Asian markets also fell.

The Fed and central banks in Europe and Asia have raised rates aggressively this year to stop inflation that is running at multi-decade highs. Investors worry that might tip the global economy into recession.

U.S. consumer prices rose 6.2% over year earlier in September, the same as the previous month. Core inflation, which excludes volatile food and energy prices to make the trend clearer, accelerated to 5.1% from August's 4.9%.

The Fed said Wednesday it...