Asia Shares Fall as US Inflation Fuels Rate Concerns
The Kospi dropped 5.6% as investors weighed hotter US inflation and the prospect of Federal Reserve rate hikes.
Key takeaways
- MSCI’s Asia-Pacific shares index fell 1.2%, led by a 5.6% drop in the Kospi.
- Futures priced a 31.6% chance of a 25-basis-point Fed hike at its next meeting.
Asian shares fell Thursday after US inflation accelerated more than expected, raising concerns about higher interest rates. MSCI’s broadest index of Asia-Pacific shares outside Japan lost 1.2%, while South Korea’s Kospi plunged 5.6%.
Japan’s Nikkei 225 fell 1.3%, and S&P 500 e-mini futures were down 0.3%. Reuters reported that technology stocks were under pressure, with AI financing risks among investors’ concerns.
Fed funds futures put the probability of a 25-basis-point rate hike at the Fed’s October 28 meeting at 31.6%, up from 22.1% a day earlier, according to CME Group’s FedWatch tool. Investors were also watching for comments from Fed officials and US producer price and retail sales data due Thursday.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.