Asian shares continue to fall on fears of US interest rate rise

Aug 05, 2015 (LBO) – Asian shares dipped on Wednesday as investors saw signs of US interest rate rise as early as next month, foreign media reports said.

The shift to higher rates in the US has been resulted in the withdrawal of funds from emerging markets, putting pressure on their currencies.

The dollar rose against the yen, hitting 124.34 from 123.77 on Tuesday.

The Nikkei fell 0.2 percent to 20,489 points while South Korean shares were flat, with the Kospi index at 2,027 points.

In China, the Shanghai Composite was down 0.1 percent to 3,750 points, while Hong Kong’s Hang Seng index was up 0.3 percent to 24,478 points.

The U.S. dollar traded as high as 6.2220 against the Chinese yuan, from 6.2180 late Tuesday in Asia.

The closely managed yuan has been stable in recent months, despite volatility in China’s stock market, but markets expect it to weaken, the report said.