Asian markets fall after US markets worst day since June 2020 after US inflation data

Stocks across the region were down by early Wednesday afternoon, with a reference to Japan. Nikkei (N225) and from South Korea Kospi (KOSPI) the indices fell by 2.3% and 1.6%, respectively.
Chinese markets also fell, with the benchmark Shanghai Composite (SHCOMP) Index down 1%. from Hong Kong Hang Seng index (HSI) down 2.6%.

Australia’s S&P/ASX 200 fell sharply by 2.4%.

U.S. futures edged slightly higher on Wednesday, with Dow and Nasdaq futures each trailing up 0.1%. S&P 500 futures were down 0.1%.

“Equity futures suggest the unfairness stops here,” Robert Carnell, ING’s regional head of Asia-Pacific research, wrote on Wednesday. “I’m not sure I would bet much on that outcome.”

Hours earlier on Tuesday, US stocks fell for their worst day since June 11, 2020, after the country’s August inflation data surprised investors.

The US Consumer Price Index, which covers essential goods and services, rose 0.1% from July, compared with economists’ expectations for a 0.1% drop.

The Dow (INDU) It decreased by 3.9%. The S&P 500 (INX) It decreased by 4.3%, and Nasdaq Composite (COMP) It decreased by 5.2%.
Investors are worried that hotter-than-expected inflation will prompt the US Federal Reserve to raise interest rates more aggressively, which could seriously damage the country’s economy in the process.

Lackluster US inflation data caught “markets completely off guard,” Carnell also wrote in a note to clients on Wednesday, with core US inflation – which strips out the most volatile categories such as food and gas – reaching 6.3% in August.

The 0.6% month-on-month gain was double what economists had expected.

Consumers in the world’s largest economy have struggled to adjust to rising prices, cutting back on almost everything from food to school supplies.

– Nicole Goodkind, Alicia Wallace and Laura contributed to this report.