Following US CPI Release, Asian Markets Plunge After New York Stocks; South Korea and Japan Down Over 2%

[Image source=EPA Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Following the August U.S. Consumer Price Index (CPI) announcement that greatly exceeded expectations, the New York Stock Exchange experienced its worst plunge in over two years, causing Asian markets to open sharply lower.

On the 14th, Japan's Tokyo Stock Exchange saw the Nikkei 225 index open at 28,132.70, down 1.68% from the previous trading day. After the market opened, the decline deepened, breaking below the 28,000 level, with the Nikkei 225 currently recording a drop in the high 2% range. The TOPIX index also started down 1.57% from the previous day and is extending its losses.

The Nihon Keizai Shimbun reported, "The U.S. August CPI recorded a rise exceeding market expectations, heightening concerns over an accelerated interest rate hike in the U.S. The sharp decline across major U.S. stock indices is weighing heavily on investor sentiment in the Tokyo market."

South Korea's KOSPI index also opened at 2,390.47, down 2.41% from the previous trading day, while the KOSDAQ index opened at 775.93, down 2.62%. Australia's S&P/ASX 200 index is also trading with a decline exceeding 2%.

Meanwhile, the Asian foreign exchange market is also experiencing significant volatility. On this day, the won-dollar exchange rate surpassed 1,390 won for the first time in 13 years and 5 months since the end of March 2009 during the financial crisis. The exchange rate opened at 1,393.0 won, up 19.4 won from the previous day's closing price, and fluctuated around 1,394 won in early trading.

Regarding the yen, the dollar-yen value rose more than 1% compared to the previous day in the morning, approaching 145 yen. The Japanese Ministry of Finance issued a statement in the morning saying, "We are concerned about the yen's rapid movements and are not ruling out any options to respond appropriately." Subsequently, the yen exchange rate eased to around 144.30 yen per dollar.

This content was produced with the assistance of AI translation services.