Hong Kong, 19 October 2026 – Asian technology shares fell sharply after United States consumer inflation accelerated to 3.7% in September from 3.4% in August, exceeding the 3.6% market expectation. In the regional sell-off, South Korea’s KOSPI dropped 7.2%, Japan’s Nikkei 225 fell 4.7% and the MSCI Asia-Pacific index declined nearly 3%.
For Asian investors, the move matters because richly valued AI and semiconductor companies are especially sensitive to higher discount rates. The inflation release and market declines are confirmed point-in-time data, while the duration of the correction is uncertain. A single reading does not determine central-bank policy, but it reduced confidence in rapid rate cuts and forced markets to reprice growth assets.
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