Add as a preferred source on GoogleTaiwan, South Korea Stocks Plunge Ahead of Key U.S. CPI Report
Taiwan’s benchmark fell more than 1,000 points while South Korea’s KOSPI dropped 6.2% as markets assessed inflation and year-end Fed rate expectations.
Asian stocks sold off sharply Monday as investors weighed a weekend missile attack near Riyadh, weaker semiconductor shares and the potential impact of Wednesday’s U.S. inflation report on Federal Reserve policy.
Taiwan’s weighted index fell 1,024 points, or 2.08%, by 9:55 p.m. ET Sunday (1:55 UTC Monday). Taiwan Semiconductor Manufacturing Co. dropped as much as NT$45 to NT$2,495, while the over-the-counter index lost 4.04%.
South Korea’s KOSPI fell as much as 6.2%, breaking below 6,000 points and triggering a temporary halt to program selling. Samsung Electronics and SK Hynix, two major memory-chip companies, also declined sharply.
The selloff followed weakness in U.S. semiconductor shares, with the Philadelphia Semiconductor Index falling 2.67% and Taiwan Semiconductor Manufacturing’s U.S.-listed shares losing 1.95%. Brent crude rose above $104 a barrel after the Riyadh airport attack, adding to concerns that higher energy costs could keep inflation elevated.
The U.S. Bureau of Labor Statistics will release September consumer-price data Wednesday at 8:30 a.m. ET (12:30 UTC). Economists expect annual headline inflation of 3.7% and core inflation of 2.5%, compared with 3.4% and 2.4% in August. The figures will help determine whether markets expect one or two additional Federal Reserve rate increases before year-end.
Enna Lee
ReporterEnna Lee reports on investing and digital-asset markets for TokenPost. Send corrections or tips to info@tokenpost.com.