Asian stock markets fell following the release of higher-than-expected US inflation data, leading to a drop in US stocks.
- The hotter-than-expected US inflation data led to a drop in Asian stocks and a warning from Japan about rapid movements in the foreign-exchange market.
- The consumer price index report caught investors off guard, impacting expectations for US interest-rate cuts and causing a surge in the stock market’s “fear gauge”.
- The dip in gold prices and contrasting outlooks from OPEC and the IEA contributed to a mixed market sentiment alongside the steady rise in oil prices.
The inflation data dampened expectations for early US interest rate cuts, leading to a drop in the odds of a rate cut in May.
The Golden Dragon index of US-traded Chinese companies dropped 2.7% on Tuesday, marking its largest decline in nearly a month. Trading is expected to resume in Hong Kong while…
