Asian Shares slide as China hiked Interest Rate

The Peoples' Bank of China Monetary Policy Committee has raised its interest rate and the impact was clear and loud on Asian shares. The economies of the world are on a track of recovering from the global financial crisis.

The impact of the rise in the interest rate in china is high and triggered a negative sentiment in the global stock market. The Japan shares were slide by around 2 per cent and the Hong Kong's Hang Seng index was also seen in red.

Interest rate plays vital role in deciding the economy's fiscal exposure, the circulation of currency and banking activities. This will also affects the stock markets.