Asian markets displayed a mixed performance on Thursday, as investors grappled with concerns sparked by soaring US inflation figures. While oil prices saw a marginal uptick, US futures remained stagnant.
In South Korea, the political landscape was shaken by the ruling conservative party’s substantial setback in a parliamentary election. Despite this upheaval, the Kospi index saw a marginal increase of less than 0.1%, reaching 2,708.15. The aftermath of the election saw significant resignations from top government officials, signaling a major political blow to President Yoon Suk Yeol’s administration.
Elsewhere in the region, Tokyo’s Nikkei 225 recorded a 0.4% decline, settling at 39,432.61, while Hong Kong’s Hang Seng index dipped 0.6% to 17,037.80. Conversely, the Shanghai Composite index in China posted a modest gain of 0.4%, reaching 3,038.68, whereas Australia’s S&P/ASX 200 index experienced a 0.4% decrease, closing at 7,816.00. Bangkok’s SET index and Taiwan’s Taiex index witnessed declines of 0.5% and 0.3%, respectively.
Wednesday’s trading session on Wall Street saw notable losses, with the S&P 500 index dropping 0.9% to 5,160.64, the Dow Jones Industrial Average falling 1.1% to 38,461.51, and the Nasdaq composite slipping 0.8% to 16,170.36.
The bond market experienced turbulence, with Treasury yields surging as bond prices declined. This development intensified pressure on the stock market following the release of a report indicating that inflation exceeded economists’ expectations last month. This marked the third consecutive report suggesting potential stagnation in efforts to curb high inflation levels.
