Wall Street beats Asian stock markets

Asian stocks fell in the early days of trade, worries about rising US interest rates and a global trade war prompted investors to sell risk globally.

Asian markets were inspired by US equities, which suffered their biggest single-day drop in recent months on Wednesday.

Japan's benchmark, the Nikkei 225, dropped 3.9%, on the way to its biggest daily decline since March.

In China, the Shanghai Composite index fell to its lowest level since 2014. It was 3.9% lower and the Hang Seng index at 3.8%.

The US Federal Reserve raised rates in September, as the economy experienced strong growth.

Higher interest rates make borrowing more expensive, slow down economic activity and dampen investors' appetite for risk.

A US-led trade war against China has also worried investors about global growth prospects.

Elsewhere in Asia, the Kospi benchmark South Korea fell 3.4% and the Australian S & P / ASX 200 index of 2.4%.

Trump's attacks 'crazy' Fed

US markets performed better than expected this year, bouncing back from the turbulence of the beginning of the year to set new records over the summer.

But the Federal Reserve is raising interest rates and more are likely to come.

Last month, the Fed dropped the description of its "accommodative" policy, reflecting the idea that the economy is strong enough to not need the kind of stimulation that it has. she received after the financial crisis.

Asia has benefited from low interest rates globally after the crisis as investors seek to place their money in markets offering higher returns.

The prospect of a reduction in stimulus measures from the United States has been compounded by a trade war between the world's two largest economies – which, according to the IMF, could hurt growth.

US President Donald Trump has been particularly critical of the Fed's rate hike, breaking with the American tradition that presidents respect independence. from the central bank.

"The Fed is making a mistake," he told reporters on Wednesday. "I think the Fed has gone crazy."

The fall in the stock market occurred prior to the earnings season of US companies, when companies will inform investors of their outlook for the rest of the year.