Asian stocks close lower, after tumble in NY on US inflation data

Stocks in Asia and the Pacific closed lower on Wednesday (14), after Wall Street suffered a tumble last Tuesday in reaction to US consumer inflation (CPI) data that exceeded expectations.

Leading losses in the Asian region, Japan’s Nikkei stock index tumbled 2.78% in Tokyo today to 27,818.62 points, while the Hang Seng dropped 2.48% in Hong Kong to 18,847.10 points.

The South Korean Kospi lost 1.56% in Seoul, at 2,411.42 points, and the Taiex was down 1.59% in Taiwan, at 14,658.31 points.

In mainland China, the day was also one of losses: the Shanghai Composite was down 0.80% to 3,273.54 points, and the less comprehensive Shenzhen Composite dropped 1.14% to 2,100.90 points.

On Tuesday, New York stocks tumbled as much as 5%, the biggest one-day drop since June 2020, after the U.S. CPI came in above expectations, raising fears that the Federal Reserve (Fed, the U.S. central bank ) raise interest rates at an even more aggressive pace.

The Fed’s next interest rate decision will be on the 21st.

Tensions between the US and China are also weighing on investor sentiment in Asia. Chinese Presidents Xi Jinping and Russian President Vladimir Putin are due to meet this week, underscoring the two countries’ good relationship at a time when the West imposes sanctions on Moscow for its invasion of Ukraine.

In addition, the US is considering applying new sanctions to Beijing to prevent attacks on Taiwan, an autonomous island that China claims is part of its territory, according to the report. Reuters.

In Oceania, the Australian stock exchange followed the bad mood on Wall Street and Asia, and the S&P/ASX 200 fell 2.58% in Sydney, at 6,828.60 points, its worst daily performance since mid-June.