The Nikkei Average and KOSPI both fell about 2% after US August PPI exceeded market expectations. Kioxia fell about 7%, while Samsung Electronics and SK hynix also declined across the board.
The US Producer Price Index (PPI) rose 5.4% year on year in August, exceeding market expectations and reigniting concerns that inflation could remain elevated for longer. Risk appetite in Asian markets deteriorated as a result, with the Nikkei Average and KOSPI both opening sharply lower.
The Nikkei Average closed down 1.93% at 64,011.29 points, as declines in major stocks weighed on the market. KOSPI ended down 1.76% at 6,909.92 points, while concerns grew in the South Korean market that US interest rates would remain high.
Among individual stocks, Kioxia ended trading down 6.99% at ¥54,030, Samsung Electronics down 3.53% at KRW259,500, SK hynix down 2.21% at KRW1,812,000, and SoftBank down 3.96% at ¥6,540.
The market focus is on the US CPI due out today. Expectations are growing that the Federal Reserve could delay the start of interest-rate cuts if inflation remains elevated, leaving Japanese and South Korean markets exposed to further downside risk.