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Most Asian markets fall after hotter-than-expected U.S. inflation data sends Wall Street lower; Hong Kong gains

Lim Hui Jie

This is CNBC's live blog covering Asia-Pacific markets.

The Bank of Japan headquarters in Tokyo.
Bloomberg | Getty Images

Most Asia-Pacific markets fell on Wednesday, with the exception of Hong Kong, after hotter-than-expected U.S. inflation data sent Wall Street tumbling overnight.

U.S. consumer price index climbed 3.1% on a 12-month basis and 0.3% for the month. Economists polled by Dow Jones expected the CPI to have increased by 0.2% month over month in January and 2.9% on an annual basis.

Core prices, which exclude volatile food and energy components, rose 0.4% month over month and 3.9% from a year ago. Core CPI was expected to have increased 0.3% in January and 3.7% from a year earlier, respectively.

Hong Kong's Hang Seng index reversed losses to gain 0.96%, bucking the wider downturn as the city returned to trade after the Lunar New Year holiday. Mainland Chinese markets will remain closed for the week.

Japan's Nikkei 225 retreated from 34-year highs, falling 0.69% to end at 37,703.32, while the Topix saw a larger loss of 1.05% and ended at 2,584.59.

The Nikkei had rallied about 3% to breach the 38,000 mark briefly on Tuesday. It last touched that level in 1990.

Japan's top currency diplomat Masato Kanda said that "recent movements in the foreign exchange market have been rapid" with regard to the yen, and authorities are watching these "with a high sense of urgency," according to Reuters.

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South Korea's Kospi dropped 1.1% to close at 2,620.42, with heavyweight Samsung Electronics losing 1.6%, while the small-cap Kosdaq returned to positive territory and gained 0.96%, ending the day at 853.3.

In Australia, the S&P/ASX 200 slid 0.87% to close at 7,537.7, extending its losing streak to a third day.


Overnight in the U.S., the hotter-than-expected inflation data saw all three major indexes lose ground, with the Dow Jones Industrial Average falling 1.35%, clocking its worst session since March 2023 on a percentage basis.

The S&P 500 slid 1.37%, while the Nasdaq Composite fell 1.8% to settle at 15,655.60.

— CNBC's Lisa Kailai Han and Brian Evans contributed to this report

Korean Air gets EU approval for Asiana Airlines merger

Korean Air is South Korea's largest airline. Korean Air planes at Gimpo International Airport in Seoul, South Korea.
Seong Joon Cho | Bloomberg | Getty Images

Korean Air said Tuesday the European Commission had approved its merger with Asiana Airlines.

Shares of Korean Air fell 1% in afternoon trading on Wednesday, while Asiana Airlines tumbled nearly 8%.

The approval was based on conditions that Asiana Airlines would sell its cargo freighter business, and divest four overlapping passenger routes between Korea and the European Union.

"These measures are designed to maintain a competitive environment in the relevant markets," the statement from Korean Air read.

Korean Air needs to find a buyer for Asiana's cargo freighter business, once the merger is complete.

"With the EC approval secured, Korean Air continues to be focused on its discussions with the U.S. competition authority to finalize the overall merger review processes as soon as possible," according to Korean Air.

The deal, worth $1.4 billion, was first announced in late 2020 and is yet to receive regulatory approval from U.S. authorities.

— Shreyashi Sanyal

Japan 10-year government bond yields rise as yen weakens beyond 150

Yields on 10-year Japanese government bonds rose to 0.766 on Wednesday, their highest level since Dec. 11.

The move comes as the yen weakened for a seventh straight session, falling below the 150 mark against the dollar.

Under the Bank of Japan's yield curve control policy, the BOJ targets 10-year JGB yields at around 0%, while keeping the upper limit at 1% "as a reference."

— Lim Hui Jie

CNBC Pro: Beyond Tesla: Morningstar strategist names 2 under-the-radar stocks to play the electric vehicle revolution

The electric vehicle industry is seeing cutthroat competition between investor favorite Tesla and several Chinese automakers like BYD.

However, one strategist has his sights on the wider electric vehicle ecosystem.

"While Tesla grabs all the headlines, we don't necessarily think that it's going to be the electric vehicle manufacturers that do the best," Morningstar's Chief Markets Strategist David Sekera said, naming two under-the-radar companies he likes.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

Japan's yen breaches 150 against dollar, weakens for seventh straight day

Japan's yen breached 150 against the dollar on Wednesday, weakening for a seventh straight session.

The country's top currency diplomat Masato Kanda reportedly said that "recent movements in the foreign exchange market have been rapid" with regard to the yen.

Kanda also noted that authorities are watching the activity and would take "appropriate actions on forex if needed," according to Reuters.

The Bank of Japan's exit from negative interest rates and other policy measures have been on investors' radar amid expectations of rate cuts by the U.S. Federal Reserve this year.

— Shreyashi Sanyal

CNBC Pro: Will Japan's bull run continue? Here's what the pros say, and how to invest

Investors have been piling into Japan’s markets, repeatedly pushing them to record highs.

Will its bull run continue though, and how should investors play this Asian market?

Here’s what Wall Street and other pros say, and how to invest – including the stocks to buy.

CNBC Pro subscribers can read more here.

— Weizhen Tan

Dow posts biggest one-day loss since March 2023

Stocks closed lower on Tuesday after January's hotter-than-anticipated inflation report sent the equity market reeling early in the morning.

The Dow Jones Industrial Average dropped 524.63 points, or 1.35%, to settle at 38,272.75. It was the worst day for the 30-stock index since March 2023. The S&P 500 slipped 1.37% to close at 4,953.17, while the Nasdaq Composite shed 1.80% to finish at 15,655.60.

— Lisa Kailai Han

Oil prices rise despite stubborn U.S. inflation

Oil futures rose Tuesday despite stubborn inflation in the U.S. that dragged the stock market lower.

The West Texas Intermediate contract for March gained 95 cents, or 1.24%, to settle at $77.87 a barrel. The Brent contract for April settled at $82.77 a barrel, up 77 cents or 0.94%.

WTI has struggled to break out of a range of about $68 to $78 a barrel amid uncertainty over war in the Middle East and an unclear supply and demand outlook for the year.

WTI and Brent are up about 8.68% and 7.44%, respectively, for the year, however.

— Spencer Kimball

All S&P 500 sectors see losses

All 11 sectors that comprise the broad S&P 500 traded down at least 1% Tuesday afternoon. As a whole, the benchmark index lost about 1.8%.

Real estate stocks led the index lower, hurt by 5% drops in Boston Properties and Alexandria Real Estate Equities. The utilities and consumer discretionary sectors also weighed on the S&P 500, with each down more than 2%.

On the other hand, health care saw the smallest drop with a slide of 1.2%. Losses for the sector were mitigated by rallies of more than 2% in Incyte and McKesson.

— Alex Harring