Tokyo, Japan – Most Asia-Pacific markets experienced a decline on Wednesday, following the release of U.S. inflation data that exceeded expectations and led to a drop in Wall Street. The consumer price index in the U.S. rose 3.1% on a 12-month basis and 0.3% for the month, surpassing the forecasts of economists. Core prices, which exclude volatile food and energy components, also increased by 0.4% month over month and 3.9% from a year ago.
In Hong Kong, the Hang Seng index managed to gain 0.96%, despite the wider downturn that day. Meanwhile, in Japan, the Nikkei 225 retreated from its 34-year highs, falling 0.69% to end at 37,703.32, with the Topix seeing a larger loss of 1.05% and ending at 2,584.59. The recent movements in the foreign exchange market have stirred concern among Japanese authorities, particularly regarding the yen, according to Japan’s top currency diplomat Masato Kanda.
In South Korea, the Kospi dropped 1.1% to close at 2,620.42, with heavyweight Samsung Electronics losing 1.6%, while the small-cap Kosdaq returned to positive territory and gained 0.96%, ending the day at 853.3. In Australia, the S&P/ASX 200 slid 0.87% to close at 7,537.7, extending its losing streak to a third day.
The hotter-than-expected U.S. inflation data also caused all three major indexes in the U.S. to lose ground. The Dow Jones Industrial Average fell 1.35%, the S&P 500 slid 1.37%, and the Nasdaq Composite fell 1.8% to settle at 15,655.60, marking its worst session since March 2023 on a percentage basis.
Overall, the markets in the Asia-Pacific region reflected the impact of the unexpected U.S. inflation data, creating a sense of caution and prompting a broader downturn across various stock exchanges. This event calls attention to the interconnectedness of global financial markets and the influence that economic indicators in one region can have on markets worldwide.