Asian Stocks Slammed by CPI Shock
The Asian Market Reacts to U.S. Inflation Data
Most Asian shares tumbled on Wednesday, following a decline on Wall Street after U.S. inflation data raised concerns over higher interest rates. This came after U.S. CPI inflation read hotter-than-expected for January, which led to renewed concerns about prolonged higher rates.
Nikkei Retreats from 34-Year High
Japan’s Nikkei fell 0.8% as investors locked in profits at 34-year highs. Technology-heavy indexes also experienced steep declines due to extended profit-taking in the sector.
Wall Street Indexes and Asian Trade
Wall Street indexes tumbled from record highs, while Asian trade saw the S&P 500 fall by 0.1%. The Nasdaq and Dow Jones were muted in response to the U.S. inflation data.
Tech-Heavy Indexes and Dovish BOJ Bets
Tech-heavy indexes logged the steepest gains among Asian bourses, with Hong Kong’s Hang Seng Index sinking 1% and South Korea’s KOSPI tumbling 1.5%. Despite losses, the Nikkei 225 remained within reach of a potential record high due to dovish Bank of Japan bets.
SoftBank Group Corp. and Arm Holdings
Stocks such as SoftBank Group Corp. fell nearly 3% after racing to near three-year highs. This was due to a 20% overnight slide in British chip designer Arm Holdings, in which SoftBank holds a majority stake.
Australia’s ASX 200 and Commodity Losses
The ASX 200 slid 1%, pressured by a 2.4% drop in Commonwealth Bank Of Australia. Heavyweight mining stocks BHP Group Ltd and Rio Tinto Ltd also weighed on the ASX as commodity prices slid after the strong U.S. inflation reading.
Broader Asian Markets and Futures for India’s Nifty 50
Broader Asian markets retreated, with Singapore’s Straits Times Index leading losses with a 0.6% decline. Additionally, futures for India’s Nifty 50 index pointed to a negative open, with local tech heavyweights set to track losses in their U.S. peers.
