NEW YORK 11 Oct (ANA) - Asian stocks have slumped as concerns about higher US interest rates and a global trade war prompted investors to sell.

 

Markets in Asia took their cue from US stocks, which suffered their sharpest one-day falls in months on Wednesday.

 

By the end of trade in Japan, the benchmark Nikkei 225 index had lost 3.9%, to close at 22,590.86 points.

 

In China, the Shanghai Composite lost 5.2%, while Hong Kong's Hang Seng closed down 3.5%.

 

The US Federal Reserve raised rates in September, in response to solid economic growth, and hinted that another rise could be coming before the end of the year.

 

Higher interest rates make borrowing more expensive, slowing economic activity and hurting investor appetite for risk.

 

A US-led trade war against China has also made investors worried about the outlook for global growth.

 

Elsewhere, South Korea's benchmark Kospi index lost 4.4% to close at 2,129.67, and Australia's S&P/ASX 200 lost 2.7% to end at 5,883.8.(ANA)

FA/ANA/11 October 2018----