Impact of US CPI Release... Japan's Nikkei Index Closes Down 2.78%

[Image source=EPA Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] The Japanese stock market closed down over 2% on the 14th following the release of the U.S. August Consumer Price Index (CPI), which exceeded expectations.

At the Tokyo Stock Exchange, the Nikkei 225 index closed at 27,818.62, down 2.78% from the previous trading day. The Nikkei 225, which opened down by over 1%, widened its losses shortly after the opening, falling below the 28,000 level. The TOPIX index closed down 1.97% at 1,947.46.

The Nihon Keizai Shimbun reported, "With the U.S. August CPI showing a higher-than-expected increase, concerns about an accelerated interest rate hike in the U.S. have intensified," adding, "The sharp decline in major U.S. stock indices has weighed on investor sentiment in the Tokyo market."

Following the U.S. CPI announcement, the New York stock market plunged on the 13th (local time). At the New York Stock Exchange (NYSE), the Dow Jones Industrial Average fell 3.94% to 31,104.97, the S&P 500 dropped 4.32% to 3,932.69, and the Nasdaq index declined 5.16% to 11,633.57. The Dow's drop exceeded 1,200 points, marking its worst day since June 2020.

Along with Japan, South Korea's KOSPI and KOSDAQ indices also opened down over 2% that day, and stock markets across Asia, including Hong Kong and China, showed a downward trend.

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