Asia Stocks Down as U.S. Peer Fell from Highs over CPI Data

Asia Stocks Down as U.S. Peer Fell from Highs over CPI Data

On Wednesday, July 14, stocks in Asia were down as their U.S. counterparts fell from record highs due to the freshly released consumer price index data which spiked 5.4%.

Japan’s Nikkei 225 plummeted 0.36% with a net change of 104.60 points which sent the stocks to the bottom at $28,613.64 per share.

While the broader TOPIX index also plunged 0.08%, having a net loss of 1.60 points. This sent the stocks below at $1,966.91 per share.

Likewise, the KOSPI of South Korea subsided 0.27% or 3.95 points sending the stocks downward at $3,262.43 per share.

Meanwhile, the Bank of Japan and the Bank of Korea will hand down their interest rate decisions on Friday and Thursday, respectively.

In Hong Kong, the Hang Seng Index lost 0.45% or 124.78 points. This sent the stocks to the bottom at $27,757.13 per share.

Alongside, the U.S. warned blue-chip companies on the increasing risks of operating in the city earlier this week.

Consequently, China’s Shanghai Composite fell 0.54 with a net loss of 19.15 points to $3,547.37 per share while the Shenzhen Component also flopped 0.80%.

This is due to investors who are still processing the July 13 release of exports data which surpassed the forecast of 23.1% with an actual figure of 32.2%  year over year in June.

Now, they are waiting for further data which include the gross domestic product for the second quarter and the industrial production that is due on Thursday.

U.S. Stocks Fell

Furthermore, the U.S. stocks were down due to the Tuesday release of core CPI which surpassed analysts’ projection of 0.50% to 0.90% month over month in June.

The losses were led by the sectors in Basic Materials, Consumer Services, and Financials.

The Dow Jones Industrial Average fell 0.31% with a net change of $107.39. This sent the stocks to the bottom at $34,889 per share.

Also, the NASDAQ Composite Index fluctuated 0.38% with a net loss of $55.59 sending the stocks below at $14,678 per share.

Likewise, the S&P 500 Index declined 0.35% or 15.42 points to $4,369 per share.

An analyst said that the inflation print topped the forecasts which indicate higher costs as the country took down the COVID-19 pandemic curbs.

In addition, it still can be seen if the figures will prompt the U.S. Federal Reserve to start their asset tapering sooner despite its reiteration that the inflationary pressures are only temporary.

  • Support
  • Platform
  • Spread
  • Trading Instrument
Comments Rating 0 (0 reviews)