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Asian currencies and stocks feel impact of Fed rate rise signal

US central bank accelerates likely timing of post-pandemic increase

Asian stock markets and currencies were lower on Thursday after the U.S. Federal Reserve suggested interest rates would rise in 2023. (File photo by Kohsuke Imamura)

TOKYO/HONG KONG -- Asian currencies were hit and stock markets were broadly lower on Thursday after the U.S. Federal Reserve indicated that it expected to make its first post-pandemic interest rate increase in 2023.

In Japan, the blue-chip Nikkei Stock Average at one point dropped over 400 points, or 1.4%, before trimming its losses to close down 0.9%. The broader Topix benchmark slipped 0.6% while the startup-concentrated Mothers index was hit the hardest, declining 1.7%.

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