Asian Stocks Fall, US CPI Heats Up, Lifting Yields and Pressuring Growth Stocks
Asian stock markets fell, following Wall Street after US inflation rebounded, reflecting the impact of the surge in oil prices since the Iran war began. The MSCI Asia Pacific Index fell 0.4%, with South Korean stocks falling 2.4%.
In the US, index futures also fell after the S&P 500 and Nasdaq 100 fell on Tuesday. Pressure was felt most strongly in the technology sector, where the chipmakers index plunged 3% after a record-breaking rally.
The main trigger came from faster-than-expected US core inflation, pushing up Treasury yields and increasing bets on tighter Fed policy. In commodities, Brent fell slightly but remained above US$107/barrel after three consecutive days of gains, keeping inflation concerns high.
US data showed price pressures becoming more pronounced: April CPI rose 3.8% year-on-year, the highest since 2023, while core inflation rose 2.8%. Rising gasoline and food costs are said to be outpacing wage growth, squeezing purchasing power and reinforcing the narrative that high interest rates could persist for longer.
The combination of expensive oil, rising yields, and a strengthening dollar has the potential to hamper the equity rally previously driven by megacap tech and AI/semiconductor stocks. In recent trading, Japan's Topix rose 0.3%, while Australia's ASX 200 fell 0.6%, and Euro Stoxx 50 futures fell 1.5%. (asd)*
Source: Newsmaker.id
