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By JOE McDONALD, AP Business Writer

Asian stock markets tumbled Thursday after the U.S. Federal Reserve indicated its benchmark interest rate will stay close to zero at least through 2023 but announced no additional stimulus plans.

Market benchmarks in Shanghai, Tokyo, Seoul and Hong Kong all retreated.

On Wednesday, Wall Street's benchmark S&P 500 index closed down 0.5% after the Fed said it won't raise interest rates until inflation reaches 2%, which the U.S. central bank's own projections show it doesn't expect until late 2023.

Chairman Jerome Powell promised the Fed “we will not lose sight of the millions of Americans that remain out of work” but gave no indication of new stimulus.

Markets “hoped for the Fed to put policy money where the mouth is” but "ended up a tad disappointed,” Mizuho Bank said in a report. The Fed was “long on talk and short on action.”

Also Thursday, the Japanese central bank left its interest rates unchanged and gave no indication about possible additional stimulus.

The Shanghai Composite Index lost 1% to 3,215.47 and the Nikkei 225 in Tokyo sank 0.7% to 23,321.33. The Hang Seng in Hong Kong retreated 1.6% to 24,327.67.

The Kospi in Seoul shed 1.4% to 2,399.96 while Sydney's S&P-ASX 200 declined 1.1% to 5,889.80.

India's Sensex opened down 0.2% at 39,210.14. New Zealand and Southeast Asia markets all retreated.

Global markets have recovered most of this year's losses, boosted by central bank infusions of credit into struggling economies and hopes for a coronavirus vaccine.

Forecasters warn, however, that the recovery might be too big and fast to be supported by uncertain economic activity.

U.S. investors are counting on Congress for a new support package after additional unemployment benefits that help to support consumer spending expired, but legislators are deadlocked on its possible size.

On Wednesday, the S&P 500 declined to 3,385.49. The Dow Jones Industrial average rose 0.1%, to 28,032.38. The Nasdaq composite lost 1.3% to 11,050.47.

Powell said the U.S. economy has recovered more quickly than

The Fed forecast the economy will shrink 3.7% this year, an improvement over its June outlook of a 6.5% drop. The Fed projected an unemployment rate at the end of the year of 7.6% instead of the 9.3% projected in June.

“A full economic recovery is unlikely until people are confident that it is safe to re-engage in a wide variety of activities,” Powell said.

In energy markets, benchmark U.S. crude oil for October delivery lost 63 cents to $39.54 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.88 on Wednesday to $40.16. Brent crude oil for November delivery shed 55 cents to $41.67 per barrel in London. It gained $1.69 the previous session to $42.22.

The dollar gained to 105.07 yen from Wednesday's 105.01 yen. The euro retreated to $1.1765 from $1.1801.

Copyright 2020 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Donald Trump Jr. to Campaign in Sparks on Wednesday

RENO, Nev. (AP) — Donald Trump Jr. plans to stump for his father's re-election in northern Nevada next week.

President Donald Trump's campaign says his son plans an appearance in Sparks Wednesday at Peterbilt Truck Parts & Equipment.

The president drew large crowds in Nevada earlier this month during rallies in Las Vegas and rural Minden south of Carson City.

Democrat Hillary Clinton carried the key swing state in a tight race during the 2016 election.

Trump Jr. campaigned for Nevada's then-GOP Sen. Dean Heller in the final days of the 2018 election before Heller lost to Democratic Sen. Jacky Rosen.

Copyright 2020 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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