Mainland China, Hong Kong stocks fall as US inflation spurs Fed tightening concerns
Stocks on the Chinese mainland and in Hong Kong slumped as a hot reading on US inflation boosted bets that the Federal Reserve will raise interest rates. The CSI 300 Index slid 1.3 per cent and the chip-heavy Star Market 50 gauge tumbled 2.3 per cent. The Hang Seng Index fell 0.9 per cent to 24,094.03 as of 9.39am local time. The Hang Seng Tech Index dropped 1.9 per cent. The probability that the…
Mainland China and Hong Kong stocks experienced significant declines as US inflation data prompted speculation of stronger Federal Reserve interest rate hikes. The CSI 300 Index dropped 1.3%, while the Star Market 50 index fell by 2.3%. The Hang Seng Index decreased 0.9% to 24,094.03 at 9:39am local time, with the Hang Seng Tech Index shedding 1.9%.
The probability of a 25 basis point interest rate increase by the Fed in December surged to 66% from 50% a month earlier, according to the CME Group. US consumer prices surged 3.7% year-over-year in September, outpacing the projected 3.6% rise. Elevated interest rates generally weaken equity valuations and limit corporate profits.
Similar bearish trends spread across other major Asian markets, with South Korea's Kospi falling over 7% (forcing a trading halt) and Japan's Nikkei 225 sinking 4.1%.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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