Asian stocks slump after Fed says US rates will rise ‘soon’

By JOE McDONALD
AP Business Writer

BEIJING (AP) — Asian stock markets have tumbled by unusually wide margins after the Federal Reserve indicated it plans to start raising interest rates soon to cool inflation. Market benchmarks in Tokyo and Hong Kong fell by more than 2%. Seoul and Sydney sank nearly 3%. Wall Street’s benchmark S&P 500 index lost 0.1% after a Fed statement said the U.S. central bank “expects it will soon be appropriate” to raise rates. Investors expect as many as four rate hikes this year, starting in March. The Fed also said monthly bond purchases that push down long-term rates by injecting money into the financial system would be phased out in March.