Asian Stocks Continue to Lose as Fears of a Recession and Rate Risks Continue to linger

Asian stocks fell more on Friday and are headed for a major weekly loss due to rising interest rates around the world threatened to weaken economic growth and weigh on the appetite for risk.

The South Korean KOSPI index was among the worst performers of the day, dropping 1.8 percent, while the Hong Kong Hang Seng index decreased 1.1 percent. Hong Kong stocks were also the worst performers of the week, suffering a loss of 4.2 percent as their large technological exposure saw them take the most of the selling pressure.

Related: Asian stocks make up for recent losses, but the Fed’s jitters keep gains from going higher.

Stock markets in the region has been slashed this week following the U.S. Federal Reserve raised interest rates and proclaimed an aggressive approach to fighting inflation.

Central bankers are willing to face negative effects on economic growth and the labour market due to the rising rate, suggesting that further rate hikes are in the near future. This move has boosted the dollar as well as Treasury yields, while drawing capital away from risky assets.

The rising U.S. interest rates have been a major factor in the pressure on Asian market stocks this year, dripping the large quantities of liquidity that have been enjoyed over the past two years. Rate increases by other central banks of major importance like The Bank of England and the European Central Bank as well, have also affected.

The Fed’s action has put Asian market prices on track for a fourth consecutive week of losses, mirrored by the same trend in Wall Street. Technology stocks took the biggest affected, as higher interest rates caused investors to put off future earnings in the sector.

Chinese bluechip Shanghai Shenzhen the CSI300 index lost 0.9 percent, while Shanghai Composite lost 1.1%. Shanghai Composite dropped 1.1 percent. Both indexes are expected to fall 2.5 percent and 1.8 percentage in the coming week, respectively amid ongoing worries about an economic slowdown in China.

The Australian S&P/ASX 200 index dropped 2.2 percent in catch-up trade following a break on Thursday. It was expected to drop around 2.5 percent over the course of this week.

The market in Southeast Asia, Philippine stocks dropped 0.9 percent after the central bank increased interest rates in line with expectations on Thursday, however it also signaled the need for more tightening of monetary policy to fight the rising inflation.

Related: Asian stocks got hit hard by worries about a rate hike and a recession.

Indonesian shares declined 0.4 percent after the Central Bank increased rates higher than anticipated on Thursday.