Asian stocks follow Wall Street down after US recession warning | Joe Mcdonald / AP Business Writer

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Asian stock markets declined Thursday after the Federal Reserve said its economists expect a “mild recession” this year. Know more:

BEIJING—Asian stock markets declined Thursday after the Federal Reserve said its economists expect a “mild recession” this year.Wall Street closed lower Wednesday after notes from the central bank’s latest meeting said its economists expect lower bank lending to cause a “mild recession.” Traders already saw an increasing likelihood of at least a brief US recession this year following interest rate hikes to cool inflation.

The Kospi in Seoul gave up 0.1 percent to 2,548.61 while Sydney’s S&P ASX fell 0.4 percent to 7,313.90. That anxiety was briefly drowned out by fears about the health of global banks following two high-profile failures in the United States and one in Switzerland. But regulators appear to have quelled those concerns by promising more lending and other steps if needed to stabilize banks.

Traders are still largely betting the Fed will raise short-term interest rates by another quarter of a percentage point at its next meeting, according to data from CME Group. They shaded some bets toward the possibility that the Fed will merely hold rates steady in May, something it has not done for more than a year.

Investors are looking ahead to the latest quarterly profit reports US companies are due to start releasing this week.

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Asian stocks ease ahead of US inflation data, Fed minutesAsian equities drifted lower ahead of a crucial U.S. inflation report that will likely influence how soon the Federal Reserve will end its aggressive rate hikes, with markets betting on at least one more at next month’s policy meeting. | Reuters
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