The Bank of Japan headquarters in Tokyo.
Bloomberg | Getty Images
Most Asia-Pacific markets fell on Wednesday, with the exception of Hong Kong, after hotter-than-expected U.S. inflation data sent Wall Street tumbling overnight.
U.S. consumer price index climbed 3.1% on a 12-month basis and 0.3% for the month. Economists polled by Dow Jones expected the CPI to have increased by 0.2% month over month in January and 2.9% on an annual basis.
Core prices, which exclude volatile food and energy components, rose 0.4% month over month and 3.9% from a year ago. Core CPI was expected to have increased 0.3% in January and 3.7% from a year earlier, respectively.
Hong Kong’s Hang Seng index reversed losses to gain 0.96%, bucking the wider downturn as the city returned to trade after the Lunar New Year holiday. Mainland Chinese markets will remain closed for the week.
Japan’s Nikkei 225 retreated from 34-year highs, falling 0.69% to end at 37,703.32, while the Topix saw a larger loss of 1.05% and ended at 2,584.59.
The Nikkei had rallied about 3% to breach the 38,000 mark briefly on Tuesday. It last touched that level in 1990.
Japan’s top currency diplomat Masato Kanda said that “recent movements in the foreign exchange market have been rapid” with regard to the yen, and authorities are watching these “with a high sense of urgency,” according to Reuters.
South Korea’s Kospi dropped 1.1% to close at 2,620.42, with heavyweight Samsung Electronics losing 1.6%, while the small-cap Kosdaq returned to positive territory and gained 0.96%, ending the day at 853.3.
In Australia, the S&P/ASX 200 slid 0.87% to close at 7,537.7, extending its losing streak to a third day.
Overnight in the U.S., the hotter-than-expected inflation data saw all three major indexes lose ground, with the Dow Jones Industrial Average falling 1.35%, clocking its worst session since March 2023 on a percentage basis.
The S&P 500 slid 1.37%, while the Nasdaq Composite fell 1.8% to settle at 15,655.60.
— CNBC’s Lisa Kailai Han and Brian Evans contributed to this report
Jessica Roberts is a seasoned business writer who deciphers the intricacies of the corporate world. With a focus on finance and entrepreneurship, she provides readers with valuable insights into market trends, startup innovations, and economic developments.
