Asian markets sell off after US inflation fuels rate hike bets
Seoul and Tokyo bore the brunt of the selling as traders bailed out of once-imperious chipmakers.
Asian stock markets experienced significant declines on Thursday, driven by higher-than-expected US inflation data and expectations of increased interest rates by the Federal Reserve. Seoul and Tokyo were particularly hard-hit, with Seoul's Kospi dropping over 7%, and SK hynix and Samsung falling more than 10%. In Tokyo, the Nikkei 225 lost more than 5%, while Kioxia and Advantest also saw substantial declines.
SoftBank's stock fell by more than 9%. Taipei's TSMC took a 3% hit, reflecting broader tech sector troubles. These losses followed a summer slump triggered by concerns about overvalued tech firms and doubts about their ability to recoup investments. The recent US CPI data, showing a 3.7% increase in September, fueled investor concerns about potential interest rate hikes, leading to a rapid reassessment of market outlooks.
Written by urgent.news from Channel News Asia's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Asian markets sell off after US inflation fuels rate hike bets channelnewsasia.com
