Asian stocks fall as Warsh remarks revive U.S. rate-hike concerns

Aug 31, 2026 00:01 (21d ago)

South Korean and Japanese stocks fell after Kevin Warsh’s remarks increased expectations of U.S. rate increases.
KOSPI opened down 2.58% at 6,613.58 before its decline exceeded 3%, while the Nikkei later fell 2.2% to 64,930.03.
Technology shares led losses, and investors monitored Treasury yields, the dollar at 160 yen, Iran-related tensions and oil prices.

Asian stocks declined after Kevin Warsh’s August 28 Jackson Hole speech lifted U.S. Treasury yields and increased expectations of a possible Federal Reserve rate increase at the September FOMC meeting. South Korea’s KOSPI opened August 31 at 6,613.58, down 175.30 points, or 2.58%, before falling more than 3% into the 6,500 range, while Japan’s Nikkei Stock Average later fell 2.2% to 64,930.03 at 0014 GMT. Technology and chip shares led the declines, including Samsung Electronics, SK Hynix, Advantest, SoftBank Group and Tokyo Electron. The dollar rose to 160.00 yen, while investors also monitored Iran-related tensions and oil prices after U.S. forces attacked two Iranian rocket launchers in the Strait of Hormuz.