Asian shares stumble as US inflation records high
Asian shares went down on Wednesday following the release of data that showed the biggest jump in US inflation in 13 years, which sparked some market expectations that the Federal Reserve could exit pandemic-era stimulus earlier than previously thought.
However, US bond yields fell in Asian trade after a boost a day earlier due to the inflation data.
The US consumer price index (CPI) climbed up 0.9% in June, the Labor Department informed on Tuesday. The rise was higher than the market expectations and the highest increase since June 2008.
MSCI’s broadest index of Asia-Pacific shares outside Japan dropped plunged 0.33%, while Japan’s Nikkei slipped 0.2%.
Meanwhile, Chinese blue-chips sank 1% as Hong Kong’s Hang Seng dropped 0.66% and Seoul’s Kospi went down 0.29%.
Australian shares rose 0.34%, benefitting from miners and energy firms.
In other Asian news, the Japanese yen gained strength, with the dollar slipping 0.13% versus the Asian safe-haven currency.