Asian stock markets declined Wednesday following the US Federal Reserve’s decision to raise interest rates for the 14th consecutive time. The move, intended to combat inflation in the United States, has sparked concerns among investors in Asia about its potential impact on regional economies.

Analysts suggest that higher US interest rates could lead to a slowdown in economic growth in Asia, as borrowing costs increase and capital flows become more volatile. Some fear that the rate hike will make it more difficult for Asian companies to compete in the global market. Moreover, the move puts pressure on Asian central banks to consider raising their own interest rates, which could further dampen economic activity.

Specific market reactions varied across the region. The Nikkei 225 in Tokyo closed down by 1.2%, while the Hang Seng Index in Hong Kong fell by 0.8%. Markets in Seoul, Singapore, and Sydney also experienced losses. The negative sentiment reflected investor uncertainty surrounding the future direction of monetary policy and its effect on corporate earnings.

The Fed’s decision underscores its commitment to managing inflation, but its global implications are now being closely scrutinized by investors and policymakers alike. The coming months will be crucial in determining the long-term effects of the rate hike on Asian economies.