A security guard stands guard at the entrance of the Tokyo Stock Exchange building Wednesday, Nov. 2, 2022, in Tokyo. Asian shares were mostly higher Wednesday ahead of a decision by the U.S. Federal Reserve on an interest rate increase to curb inflation. (AP Photo/Eugene Hoshiko)
A person wearing a protective mask walks past an electronic stock board showing Japan's Nikkei 225 index at a securities firm Wednesday, Nov. 2, 2022, in Tokyo. Asian shares were mostly higher Wednesday ahead of a decision by the U.S. Federal Reserve on an interest rate increase to curb inflation. (AP Photo/Eugene Hoshiko)
People move past an electronic stock board showing Japan's Nikkei 225 index at a securities firm Wednesday, Nov. 2, 2022, in Tokyo. Asian shares were mostly higher Wednesday ahead of a decision by the U.S. Federal Reserve on an interest rate increase to curb inflation. (AP Photo/Eugene Hoshiko)
People move past the Tokyo Stock Exchange building Wednesday, Nov. 2, 2022, in Tokyo. Asian shares were mostly higher Wednesday ahead of a decision by the U.S. Federal Reserve on an interest rate increase to curb inflation. (AP Photo/Eugene Hoshiko)
A person wearing a protective mask walks past an electronic stock board showing Japan's Nikkei 225 index at a securities firm Wednesday, Nov. 2, 2022, in Tokyo. Asian shares were mostly higher Wednesday ahead of a decision by the U.S. Federal Reserve on an interest rate increase to curb inflation. (AP Photo/Eugene Hoshiko)
A cyclist rides past the Tokyo Stock Exchange building Wednesday, Nov. 2, 2022, in Tokyo. Asian shares were mostly higher Wednesday ahead of a decision by the U.S. Federal Reserve on an interest rate increase to curb inflation. (AP Photo/Eugene Hoshiko)
People walk past an electronic stock board showing Japan's Nikkei 225 index at a securities firm Wednesday, Nov. 2, 2022, in Tokyo. Asian shares were mostly higher Wednesday ahead of a decision by the U.S. Federal Reserve on an interest rate increase to curb inflation. (AP Photo/Eugene Hoshiko)A currency trader walks near the screen showing the foreign exchange rate between U.S. dollar and South Korean won at a foreign exchange dealing room in Seoul, South Korea, Thursday, Nov. 3, 2022. Markets: Asian stock markets tumbled Thursday after the Federal Reserve added to recession fears of a possible recession by saying it wasn't finished raising U.S. interest rates to cool inflation. (AP Photo/Lee Jin-man) Currency traders watch computer monitors near the screen showing the Korea Composite Stock Price Index (KOSPI) at a foreign exchange dealing room in Seoul, South Korea, Thursday, Nov. 3, 2022. Markets: Asian stock markets tumbled Thursday after the Federal Reserve added to recession fears of a possible recession by saying it wasn't finished raising U.S. interest rates to cool inflation. (AP Photo/Lee Jin-man) A currency trader walks near the screens showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at a foreign exchange dealing room in Seoul, South Korea, Thursday, Nov. 3, 2022. Markets: Asian stock markets tumbled Thursday after the Federal Reserve added to recession fears of a possible recession by saying it wasn't finished raising U.S. interest rates to cool inflation. (AP Photo/Lee Jin-man) Currency traders watch computer monitors near the screens showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at a foreign exchange dealing room in Seoul, South Korea, Thursday, Nov. 3, 2022. Markets: Asian stock markets tumbled Thursday after the Federal Reserve added to recession fears of a possible recession by saying it wasn't finished raising U.S. interest rates to cool inflation. (AP Photo/Lee Jin-man) Traders work on the floor at the New York Stock Exchange as the Federal Reserve chairman Jerome Powell speaks after announcing a rate increase in New York, Wednesday, Nov. 2, 2022. (AP Photo/Seth Wenig) Traders work on the floor at the New York Stock Exchange as the Federal Reserve chairman Jerome Powell speaks after announcing a rate increase in New York, Wednesday, Nov. 2, 2022. (AP Photo/Seth Wenig) Federal Reserve Chairman Jerome Powell speaks at a news conference following a Federal Open Market Committee meeting, Wednesday, Nov. 2, 2022, in Washington. (AP Photo/Patrick Semansky) 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 could shift to a more deliberate pace of rate hikes and would consider the overall economic impact.
On Wall Street, the S&P 500 fell to 3,759.69. The Dow Jones Industrial Average lost 1.5% to 32,147.76. The Nasdaq composite slid 3.4% to 10,524.80.
Tech stocks, retailers and health care companies were among the biggest declines.
Amazon.com, Inc. dropped 4.8%. Apple, Inc. fell 3.7% and Johnson & Johnson, Inc. slipped 1.5%.
The yield on the two-year Treasury, an indicator of market expectations of Fed action, rose to 4.58% from 4.55% before the Fed statement. The yield on the 10-year Treasury, used to set mortgage rates, climbed to 4.10% from 3.98%.
Investors hope signs housing sales and other activity are weakening might encourage Fed officials to ease rate hike plans. But the latest data, especially on hiring, are relatively strong, a sign the Fed might stay aggressive.
Data from payroll processor ADP showed companies added jobs at a faster pace in October than expected.
The government is due to release unemployment data Thursday and a report on the broader jobs market on Friday.
In energy markets, benchmark U.S. crude lost 53 cents to $89.47 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.63 to $90 on Wednesday. Brent crude, the price basis for international oil trading, shed 41 cents to $95.75 per barrel in London. It rose $1.51 the previous session to $96.16 a barrel.
The dollar gained to 147.52 yen from Wednesday's 146.94 yen. The euro declined to 98.19 cents from 98.83 cents.
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