US Inflation Exceeds Expectations
The faster-than-expected rise in US inflation has heightened concerns that the Federal Reserve (Fed) could raise interest rates.
The faster-than-expected rise in US inflation has heightened concerns that the Federal Reserve (Fed) could raise interest rates. This triggered sell-offs across Asian stock markets on Thursday.
The MSCI Asia-Pacific Index, excluding Japan, fell 1.2%. South Korea’s Kospi dropped 5.6%, while Japan’s Nikkei 225 declined 1.3%. S&P 500 futures also fell 0.3%.
US markets also recorded negative performance. The S&P 500 fell 1.1%, while the Nasdaq Composite declined 1.9%. Losses in semiconductor stocks extended to a sixth consecutive trading session.
Investors are also concerned about financing in the artificial intelligence sector and rising borrowing costs. Shares of companies such as Oracle and CoreWeave have come under pressure amid changing interest rate expectations.
According to CME FedWatch data, markets estimate a 31.6% probability that the Fed will raise interest rates by 25 basis points at its October meeting. This was up from 22.1% the previous day.
In currency markets, the US dollar fell 0.2% against the Japanese yen to 157.925 yen, while the euro rose 0.3% to $1.1194.