Stocks drop after Wall Street plunge on U.S. CPI

A pedestrian walks past an electronic quotation board displaying share prices of the Tokyo Stock Exchange in Tokyo on June 16, 2020.Kazuhiro Nogi | AFP | Getty ImagesShares in the Asia-Pacific dropped sharply on Wednesday after indexes on Wall Street plunged following a higher-than-expected U.S. consumer price index report for August.Japan’s Nikkei 225 dropped 2.46%, and the Topix index fell 1.81%. The Japanese yen traded at 144.38 per dollar, hovering around its weakest levels since September 1998.The Hang Seng index in Hong Kong dipped 2.55%, and the Hang Seng Tech index fell 2.96%. In Australia, the S&P/ASX 200 shed 2.48%.The Kospi in South Korea lost 1.65% and the Kosdaq declined 1.9%. The South Korean won passed the 1,390-mark against the greenback and was last trading at 1,391.98 against the dollar, around the weakest levels since March 2009.Mainland China’s Shanghai Composite lost 1.02% and the Shenzhen Component fell 1.496%.MSCI’s broadest index of Asia-Pacific shares outside Japan fell 2.28%.The U.S. 2-year Treasury yield also reached 3.79%, the highest level since 2007. The Dow Jones Industrial Average lost 1,276.37 points, or 3.94%, to close at 31,104.97. The S&P 500 shed 4.32% to 3,932.69, and the Nasdaq Composite lost 5.16% to end the session at 11,633.57.”What is perhaps most disconcerting in all this is that the strength in core inflation is very much service sector-led categories,” said Ray Attrill, National Australia Bank’s head of FX strategy, wrote in a note, adding the sector is primarily wage inflation-driven.— CNBC’s Jeff Cox, Jesse Pound and Carmen Reinicke contributed to this report.

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