Stocks drop after Wall Street plunge on U.S. CPI

A pedestrian walks past an electronic quotation board displaying stock prices on the Tokyo Stock Exchange in Tokyo on June 16, 2020.

Kazuhiro Nogi | AFP | Getty Images

Asia-Pacific stocks fell sharply on Wednesday after Wall Street indexes plunged following a larger than expected increase US consumer price index August report.

from Japan Nikki 225 fell 2.7% and the Topix index fell 2%. the Japaneses yen was trading at 143.75 to the dollar after hovering around its weakest levels since September 1998.

The Hang Seng Index in Hong Kong fell 2.55% and the Hang Seng Tech index fell 2.96%. In Australia, the S&P/ASX 200 lose 2.48%.

The Kospi in South Korea lost 1.34% and the Kosdaq fell 1.67%. South Korean won broke above 1,390 against the greenback and last traded at 1,391.98 against the dollar, around the lowest levels since March 2009.

Mainland China Shanghai Composite lost 1.02% and the Shenzhen Component fell 1.496%.

MSCI’s broadest index of Asia-Pacific stocks outside Japan fell 2.28%.

The 2-year US Treasury yield also hit 3.79%, the highest level since 2007. The Dow Jones Industrial Average lost 1,276.37 points, or 3.94%, to close at 31,104.97. The S&P 500 fell 4.32% to 3,932.69, and the Nasdaq Composite lost 5.16% to end the session at 11,633.57.

“Perhaps most disconcerting about all of this is that the strength of underlying inflation is largely driven by service sector categories,” said Ray Attrill, chief strategy officer. National Australia Bank’s currency exchange, in a note, adding that the sector is primarily wage inflation. -led.

CNBC’s Jeff Cox, Jesse Pound and Carmen Reinicke contributed to this report.

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