Most of the Asian equity benchmarks are trading lower in the early deals on Thursday after minutes of the US Federal Reserve's latest monetary policy meeting hinted that the central bank could soon raise interest rates. Additionally, a stronger US dollar weighed on commodity prices and dragged down resources stocks. Minutes of the US Federal Reserve's April monetary policy meeting released overnight hinted strongly at the possibility of an interest rate hike next month. Most participants said it would likely be appropriate to raise rates in June if incoming data is consistent with economic growth rising in the second quarter, labor market conditions continuing to strengthen, and inflation making progress toward the 2 percent objective. However, China’s stocks climbed for the first time in three days as steelmakers rallied after the government called on state-owned enterprises to further cut capacity to support prices.
Nikkei 225 dropped 11.79 points or 0.07% to 16,632.90, Hang Seng slipped 99.77 points or 0.50% to 19,726.64, Jakarta Composite contracted 31.45 points or 0.66% to 4,702.91, Taiwan Weighted decreased 67.28 points or 0.82% to 8,092.40, KOSPI Index declined 11.77 points or 0.60% to 1,944.96, Straits Times crumbled 25.06 points or 0.90% to 2,752.05, and FTSE Bursa Malaysia KLCI was down by 1.14 points or 0.07% to 1,634.58.
On the flip side, Shanghai Composite was up by 11.91 points or 0.42% to 2,819.42.