Asian stock markets dropped sharply on Thursday as US inflation data raised fears of higher interest rates, with tech firms in Seoul and Tokyo suffering the most.
Seoul's Kospi index fell more than 8 per cent before briefly halting trading, with major chipmakers like SK hynix and Samsung losing over 11 per cent and 9 per cent respectively. In Tokyo, the Nikkei 225 dropped nearly 5 per cent, with Kioxia and Advantest losing more than 12 per cent and 15 per cent respectively.
Markets were also affected in Taipei, Hong Kong, Shanghai, Sydney, Bangkok, and Jakarta, with Singapore's Straits Times Index closing down 0.5 per cent. The decline followed a rise in US consumer price inflation to 3.7 per cent in September, driven largely by increased energy costs from the ongoing Iran conflict.
Why it matters
The drop in Asian markets highlights the vulnerability of tech firms to global inflation and interest rate expectations.
This section reflects Dumpling editorial interpretation and is provided for context only.
What to watch
Traders will monitor the Federal Reserve's response to the inflation data and its impact on global markets.
This section reflects Dumpling editorial interpretation and is provided for context only.