Asian stocks tumble as hotter US inflation raises Fed rate-hike expectations
Asian equities, led by chipmakers in Seoul and Tokyo, fell sharply on 15 October after US September consumer inflation came in at 3.7%, above forecasts. The data raised expectations of a Federal Reserve rate move at its 28 October meeting.
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The story, neutrally told
Centre · 1Asian stocks fell sharply on Thursday 15 October as a technology-sector rout deepened, after US consumer price inflation rose faster than expected. CNAN “Asian stocks plunged Thursday (Oct 15) as tech firms suffered another painful rout” Read at CNA ↗ Centre · 1Seoul and Tokyo were hit hardest: by 12.30pm Singapore time, CNA reported the Kospi down more than 7 per cent, with SK hynix and Samsung each down more than 10 per cent, and the Nikkei 225 down more than 5 per cent, with Kioxia down more than 11 per cent, Advantest more than 13 per cent and SoftBank more than 9 per cent. CNAN “Seoul's Kospi had plunged more than 7 per cent, with SK hynix sinking more than 10 per cent and Samsung more than 10 per cent.”“the Nikkei 225 shed more than 5 per cent as Kioxia also dived more than 11 per cent and Advantest plunged over 13 per cent” Read at CNA ↗ Centre · 1Near the close, Anadolu Agency put the Kospi down 7%, the Nikkei 225 down 4.5%, Hong Kong's Hang Seng down 1.5% and the Shanghai Composite down 2%; it gave falls of 10.2% for SK Hynix, 8.6% for Samsung Electronics, 9.2% for LG Innotek and 11.3% for Kioxia. Anadolu AgencyN “South Korea’s Kospi fell 7%, Japan’s Nikkei 225 declined 4.5%, Hong Kong’s Hang Seng decreased 1.5%, and China’s Shanghai Composite was down 2%.”“SK Hynix shares lost 10.2%, Samsung Electronics dropped 8.6%, LG Innotek fell 9.2%, and Kioxia declined 11.3%.” Read at Anadolu Agency ↗
Centre · 1Elsewhere, CNA reported Taipei down more than 3 per cent with TSMC off about 3 per cent, and Singapore's Straits Times Index down 0.9 per cent, with chip-related stocks AEM Holdings and UMS Integration each down 9 per cent. CNAN “Taipei lost more than 3 per cent as market-heavyweight TSMC gave up around 3 per cent.”“In Singapore, the Straits Times Index fell 0.9 per cent.” Read at CNA ↗ Centre · 2The US consumer price index rose 3.7 per cent year on year in September, above the 3.6 per cent forecast cited by CNA; both outlets say gasoline, up 9.1 per cent in the month, accounted for more than half of the monthly increase. CNAN “data showed the US consumer price index hit 3.7 per cent in September, sharply up from the previous month and more than the 3.6 per cent forecast” Read at CNA ↗ Anadolu AgencyN “gas prices jumped 9.1% over the month, making up more than half of the overall monthly increase of consumer inflation.” Read at Anadolu Agency ↗ Centre · 1CNA attributed the energy surge to the more than seven-month Iran war, in which Tehran effectively choked off the Strait of Hormuz, through which a fifth of global crude passed. CNAN “largely driven by the surge in energy costs caused by the more than seven-month Iran war” Read at CNA ↗
Centre · 1Anadolu added that core CPI, excluding energy and food, rose 0.3% month on month and 2.6% annually, above estimates, and that the monthly headline rise of 0.6% was within expectations. Anadolu AgencyN “The US’ core consumer price index (CPI), excluding energy and food prices, rose 0.3% month-on-month and 2.6% on an annual basis, above estimates.”“the US monthly inflation rose within expectations by 0.6%” Read at Anadolu Agency ↗ Centre · 1According to CME Group's FedWatch tool, as cited by CNA, futures price a 31.6 per cent probability of a 25-basis-point Federal Reserve hike at its 28 October meeting, up from 22.1 per cent a day earlier. CNAN “Fed funds futures are now pricing an implied 31.6 per cent probability of a 25-basis-point hike at the US central bank's next two-day meeting on Oct 28, compared to a 22.1 per cent chance a day earlier” Read at CNA ↗ Centre · 1Saxo Markets' Neil Wilson called the report "a headache for the Fed", which had signalled a willingness to pause this month. CNAN “"This CPI report is a headache for the Fed, which had been indicating a willingness to pause this month," said Neil Wilson at Saxo Markets” Read at CNA ↗
Centre · 1Anadolu reported that Richmond Fed President Tom Barkin said the figures exceeded his expectations, and Chicago Fed President Austan Goolsbee called September's CPI "discouraging" and said services inflation was a concern. Anadolu AgencyN “Chicago Fed President Austan Goolsbee said the September CPI was “discouraging,” while the service inflation was also causing concerns” Read at Anadolu Agency ↗ Centre · 2On Wall Street on Wednesday, the Dow fell 0.09%, the S&P 500 1.11% and the Nasdaq Composite 1.88%; both outlets link the tech selling to worries over the profitability of AI investment. Anadolu AgencyN “The Dow Jones Industrial Average fell 0.09%, the S&P 500 declined 1.11%, and the Nasdaq Composite was down 1.88% on Wednesday.” Read at Anadolu Agency ↗ CNAN “Markets, already struggling with concerns about the outlook for the AI investment boom” Read at CNA ↗ Centre · 1European markets were more resilient, according to Anadolu: on Wednesday the DAX rose 0.15%, the FTSE 100 0.7% and the CAC 40 0.58%, helped by corporate earnings and ASML raising guidance, though European indexes opened Thursday lower. Anadolu AgencyN “Dutch semiconductor firm ASML’s shares rose 1.2% after it raised its forward-looking guidance”“European indexes started Thursday on a negative trend.” Read at Anadolu Agency ↗
Centre · 1In other markets, Anadolu reported Brent crude down 1.7% to $104.3 a barrel on reports that President Donald Trump is considering easing sanctions on oil-carrying ships, gold up 1% to $4,145 an ounce, the 10-year Treasury yield down nine basis points to 5.11% and the dollar index down 0.2% to 102.1. Anadolu AgencyN “December-delivery Brent crude oil declined 1.7% to $104.3 a barrel following reports that US President Donald Trump is considering easing sanctions”“The US 10-Year Treasury bond yield dropped nine basis points to 5.11%” Read at Anadolu Agency ↗ Centre · 1The producer price index is due on Thursday and Barkin said it would help assess the inflation outlook. Anadolu AgencyN “the producer price index (PPI) to be released on Thursday will help assess the inflation outlook” Read at Anadolu Agency ↗
Every sentence links to the reporting it rests on. The pill in front of each says where its sources sit: Left, Centre or Right when one side supplies at least half of them, Mixed when they are evenly split. The number is how many outlets it cites.
Left0 outlets
No left outlet in our sources has covered this story yet.
Centre2 outlets
- Framing
- Both centre outlets treat it as a market-moving inflation story. CNA leads on the Asian chip rout and a possible Fed hike; Anadolu gives a global market wrap with US data, Fed officials, commodities and Europe.
- Emphasis
- CNA: Seoul and Tokyo chipmaker losses, the Iran war and Hormuz as the energy driver, and FedWatch odds. Anadolu: Fed officials' comments, core CPI, bond yields, oil, gold, US bank earnings and European gains.
- Leaves out or plays down
- CNA omits core CPI, Fed officials' remarks and European and commodity moves. Anadolu does not mention the Iran war or Hormuz closure as the cause of the energy surge, and its rate-expectation sentence differs from CNA's.
- Charged language
- “once-imperious chipmakers”“painful rout”
- For example
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“Seoul and Tokyo bore the brunt of the selling as traders bailed out of once-imperious chipmakers.” — CNA
“Tech stocks tumbled with growing hawkish expectations amid accelerating inflation” — Anadolu Agency
Right0 outlets
No right outlet in our sources has covered this story yet.
What every side reports
- US September CPI came in at 3.7%, above forecast.
- Gasoline rose 9.1% in the month and made up more than half of the monthly CPI increase.
- Asian markets, led by the Kospi and Nikkei 225, fell sharply on 15 October on tech selling.
- Concerns over AI investment returns added to the tech selloff.
Where accounts differ
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What markets expect from the Fed at its October meeting
- Centre
- CNA: futures price a 31.6% chance of a 25-basis-point hike on Oct 28, up from 22.1%. Anadolu: markets expect the Fed to "cut rates this month with a 73% probability, up from 22%", which sits oddly with its own 'hawkish expectations' framing and CNA's figures.
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How the inflation data compared with expectations and history
- Centre
- CNA: 3.7% was above the 3.6% forecast and the highest in five months. Anadolu: annual inflation was above estimates and the highest in four months, while the 0.6% monthly rise was within expectations.
Federal Reserve organisation
Per CNA, Fed board members had suggested a go-slow approach and a pause this month; Anadolu reports Barkin and Goolsbee calling the CPI above expectations and "discouraging", with officials declining to commit on policy.
“referring to several board members who had suggested they favoured a go-slow approach to assess last month's lift” — CNA
“refusing to speculate on the Fed’s policy roadmap for this month” — Anadolu Agency
Left0 articles
No coverage yet.
Centre2 articles
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CNAN ·
Asian markets sell off after US inflation fuels rate hike bets
Alarmist Dramatic market-rout report led by Asian chipmaker losses, tying them to hotter US inflation, the Iran war and rate-hike bets.
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Global markets trade mostly negative after US inflation accelerates
Neutral Data-heavy global market wrap linking tech selling to US inflation, hawkish Fed expectations and AI-profitability concerns, with European resilience.
Right0 articles
No coverage yet.
- 15 Oct 05:40 First CNAN Asian markets sell off after US inflation fuels rate hike bets
- 15 Oct 12:21 +6h 40m Anadolu AgencyN Global markets trade mostly negative after US inflation accelerates
Times are when each article was published, or when we first saw it if the outlet gave no time.
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