Asia markets extend sell off after Powell’s comments; Japan inflation slows

Asia-Pacific markets were all lower Friday, extending losses from Thursday’s broad sell-off.

This comes as U.S. Federal Reserve Chair Jerome Powell said inflation was still too high and would likely require lower economic growth. The benchmark U.S. 10-year Treasury yield also crossed 5% for the first time in 16 years Thursday evening.

While he noted that recent data showed progress toward slowing prices, Powell also added that monetary policy was not yet too tight.

Asia investors will also assess Japan’s September inflation data, which came in at 3%, the 18th straight month above the BOJ’s 2% target, as well as China’s one-year and five-year loan prime rates.

In Australia, the S&P/ASX 200 closed 1.16% at 6,900.70.

Japan’s Nikkei 225 closed 0.54% lower at 31,259.36, while the Topix ended 0.38% down at 2,255.65. Both indexes fell after data showed Japan’s headline inflation rate slowed in September.

South Korea’s Kospi dropped 1.69% to 2,375 at its close, while the Kosdaq was 1.89% lower at 769.25.

Hong Kong’s Hang Seng index shed 0.73% in its final hour, while China’s benchmark CSI 300 index slipped 0.65% to end the day at 3,510.59, near its one year low of 3,508.7. China’s central bank kept its benchmark loan rates unchanged for October.