Asian markets opened sharply lower Thursday morning following Wall Street’s tech-led retreat, with Japan’s Nikkei 225 plunging 2.3% and Hong Kong’s Hang Seng dropping 1.8% in early trading. The selloff comes after Federal Reserve officials signaled potential rate hikes extending into 2026, crushing hopes for near-term monetary easing.

Key Developments:

• Tech giants including TSMC and Samsung Electronics led declines
• Regional currencies weakened against the dollar
• Chinese markets showed relative resilience amid government support measures
• Commodity stocks bucked the trend on rising oil prices

Market strategists warn the correction could deepen unless Fed Chair Powell provides clearer guidance in tomorrow’s speech. “This isn’t just a knee-jerk reaction – we’re seeing genuine repricing of risk assets across Asia,” said HSBC’s chief Asia economist.