On Wednesday, most Asia-Pacific markets experienced a downturn influenced by the U.S. inflation data. The Nikkei 225, Kospi, and S&P/ASX 200 all saw losses, while the Hang Seng index in Hong Kong buckled the trend.
What Happened: The U.S. Consumer Price Index (CPI) rose 3.1% on a 12-month basis and 0.3% for the month, exceeding expectations. This led to a decline in most Asia-Pacific markets, with the Nikkei 225 falling 0.69% to 37,703.32 and the Topix losing 1.05% to 2,584.59, reported CNBC.
The Hang Seng index, however, saw a 0.96% increase as Hong Kong resumed trading after the Lunar New Year holiday. Mainland Chinese markets remained closed for the week.
The Kospi in South Korea dropped 1.1% to close at 2,620.42, with Samsung Electronics losing 1.6%. The small-cap Kosdaq, on the other hand, gained 0.96% and ended 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 U.S. markets also saw a decline following the release of the inflation data, with all three major indexes losing ground. The Dow Jones Industrial Average fell 1.35%, the S&P 500 slid 1.37%, and the Nasdaq Composite dropped 1.8%.
Why It Matters: The U.S. inflation data has been a cause for concern, with economists warning that inflation remains more tenacious than anticipated. The January inflation report indicated that price pressures remain more tenacious than expected, challenging the Federal Reserve’s pathway to anticipated rate cuts.
Photo via Shutterstock.
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