Stocks in Asia traded lower on Monday following the release of hotter-than-expected US inflation data.
As of 9.19 A.M. (Thai time), Hong Kong, the Hang Seng index fell 1.57%. In mainland China, the Shanghai Composite shed 0.27%
In Australia, the S&P/ASX 200 fell 1.15%, as financials saw sharp losses after Reserve Bank of Australia’s governor Philip Lowe reiterated that inflation remains “too high.”
The Nikkei 225 in Japan lost 0.16%, and the Kospi in South Korea fell 0.93%.
The consumer price index in the United States, which measures a broad basket of common goods and services, climbed 0.5% in January, translating to a 6.4% annual increase. Dow Jones economists polled expected 0.4% and 6.2% rises, respectively.
According to Federal Reserve Bank of Philadelphia President Patrick Harker, the Fed is getting close to having restrictive enough interest rates. “In my view, we are not done yet,” he said. “But we are likely close.”
Dallas Fed President Lorie Logan said rate increases could endure “for a longer period than previously anticipated,” and Harker’s Richmond Fed counterpart Thomas Barkin told Bloomberg TV that the central bank would “have to do more” to tackle inflation.
The Dow Jones Industrial Average and the S&P 500 finished lower on Wall Street overnight. The Nasdaq Composite, on the other hand, finished the day higher, driven by technology firms such as Tesla and Nvidia.