Asian stocks sink as Fed minutes fuel rate hike bets By Investing.com

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⚠️BREAKING: *ASIAN STOCKS SINK ACROSS THE REGION AS FED MINUTES FUEL RATE HIKE BETS; HONG KONG SHARES TUMBLE 3% 🇯🇵 🇨🇳 🇭🇰 🇰🇷

indexes were relatively lesser than their Asian peers, with the two down about 0.3% and 0.2%, respectively.

A swathe of weak economic readings from the country over the past week saw traders ramping up their hopes for more stimulus measures from Beijing, as the government struggles to shore up a slowing economic recovery. In addition to slowing economic growth, Chinese investors were also contending with the threat of a worsening trade conflict with Washington. China imposed curbs on the export of key chipmaking materials to the U.S. this week, raising concerns over retaliatory measures and more disruptions to global trade.

But Chinese exporters of the chipmaking materials, along with rare earth miners, saw a share price rally this week.The Fed minutes saw markets increase their expectations for a rate hike in July, withshowing a 90.5% chance the central bank will hike by 25 basis points at a late-July meeting. Rising interest rates bode poorly for Asian stocks, given that they limit liquidity conditions and also weigh on foreign capital flows into the region.

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