Asian benchmarks decline after bear market hits Wall Street

Asian shares fell across the board Tuesday after Wall Street tumbled into a bear market, indicating that major U.S. benchmarks and individual stocks have fallen 20% or more from a recent high for a sustained period of time, the Associated Press reported.

Benchmarks fell in Japan, Australia, South Korea and China. The Japanese yen’s continuing slide against the dollar paused.

At the center of the selloff was the U.S. Federal Reserve, which is scrambling to get inflation under control. Its main method is to raise interest rates, a blunt tool that could slow the economy too much and risk a recession if used too aggressively.

Some economists are speculating the Fed on Wednesday may raise its key rate by three-quarters of a percentage point. That’s triple the usual amount and something the Fed hasn’t done since 1994.

Japan’s Nikkei 225 shed 1.8% to 26,496.91. Australia’s S&P/ASX 200 dipped 4.3% to 6,634.00 after reopening from a holiday on Monday. South Korea’s Kospi lost 1.0% to 2,479.83. Hong Kong’s Hang Seng slipped 0.4% to 20,990.98, while the Shanghai Composite edged down 1.2% to 3,217.72.