Asian stocks fell in early trading on Wednesday, just after a day in which US stocks plunged after investors were surprised by a report showing stubbornly high price increases in August.
Japanese stocks fell about 2.2 percent as of Wednesday afternoon in Tokyo. Hong Kong’s Hang Seng index fell just over 2.5 percent, and the Australian stock market was down nearly as much. The CSI 300 Index of the stock prices of major Chinese companies fell nearly one percent.
Investors in the United States were caught off guard on Tuesday by a report that showed consumer prices rose 8.3 percent in the year to August. This went against economists’ expectations and cast doubt on the belief that inflation had peaked.
By the end of Tuesday, the S&P 500 had fallen 4.3 percent, the biggest drop in the benchmark index since the depths of the June 2020 coronavirus pandemic.