Breaking News
Investing Pro 0
Cyber Monday SALE: Up to 54% OFF InvestingPro+ CLAIM OFFER

Asian Stocks Plummet After U.S. CPI Shock Raises Fed Rate Risks

Stock Markets Sep 13, 2022 11:31PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
HK50
-0.49%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
TWII
-0.04%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
SSEC
+0.40%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CSI300
+0.50%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Ambar Warrick

Investing.com-- Asian stock markets logged sharp losses on Wednesday, tracking similar declines on Wall Street after higher-than-expected U.S. inflation data pointed to more steep interest rate hikes by the Federal Reserve.

Hong Kong’s technology-heavy Hang Seng index was the worst performer among its regional peers, down 2.7%. Taiwan’s weighted index lost 1.6%, while Japan’s Nikkei 225 index shed 2.1%.

Regional markets tracked steep overnight losses on Wall Street, after the U.S. consumer price index read more than expected for August. Technology stocks were the worst hit as investors priced in weaker earnings from the sector due to an appreciating dollar and higher interest rates.

The CPI reading showed that the Federal Reserve is likely to keep raising interest rates at a sharp pace this year to combat inflation- a scenario that is negative for stock markets.

Traders are now pricing in a high possibility that the Fed will raise rates by 75 basis points next week, as well as the possibility that U.S. interest rates will finish the year at more than 4%.

Markets have also now begun pricing in the possibility of a full 1% rate hike by the Fed next week.

"The external environment of a European energy crisis, a China slowdown, and a strong dollar combined with ongoing interest rate hikes domestically and a slower housing market raise concerns about the growth story heading into year-end," analysts at ING wrote in a note.

China’s bluechip Shanghai Shenzhen CSI 300 index fell 1.1%, while the Shanghai Composite index lost 0.8%. A Reuters report suggested that the U.S. was considering new sanctions against Beijing to deter a potential invasion of Taiwan, with Taipei seeking similar moves from the European Union.

Potential U.S. sanctions would exacerbate an ongoing economic slowdown in the world’s second-largest economy, after a series of COVID-related lockdowns this year.

Weakness in Chinese markets and rising interest rates have pulled most Asian stock markets lower this year, with the pressure set to continue for the remainder of 2022.

Most Asian economies are also struggling with high inflation, which has been exacerbated by a strong dollar.

Asian Stocks Plummet After U.S. CPI Shock Raises Fed Rate Risks
 

Related Articles

Airbus may delay some 2023 jet deliveries -sources
Airbus may delay some 2023 jet deliveries -sources By Reuters - Nov 27, 2022

(This Nov. 25 story has been corrected to amend "idle waiting repairs" to "parked" in ninth paragraph) By Tim Hepher PARIS (Reuters) - Airbus is preparing the ground for further...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
nick cage
nick cage Sep 14, 2022 12:19AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Oh you're awake? caught crossing the border into recession land.
Richard Saunders
Richard Saunders Sep 14, 2022 12:13AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
LOL!!!!!! Like the FED can actually "do something". QE incoming!!
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email