15/10/2026
A global stock‑market sell‑off has spilled over into Asia with deepening losses for chip stocks, as hotter‑than‑expected U.S. inflation fuels bets on further Federal Reserve interest‑rate hikes. Safe‑haven demand lifted U.S. Treasury prices.
The MSCI Asia Pacific Index fell 2.2%, nearing its lowest level since July. South Korea’s KOSPI, a bellwether for artificial‑intelligence investment, led declines across Asia, dropping 7%. Chipmakers Samsung Electronics and SK Hynix both shed more than 8%.
Sentiment remained weak for technology shares, with Nasdaq 100 futures down 0.8%. Asian equities extended Wall Street’s slump, and the Russell 2000 also retreated. Meanwhile, the closely‑watched U.S. Semiconductor Index posted its longest losing streak since May 2025.
Inflation accelerating at its fastest pace in five months pushed traders to price in more Fed monetary tightening, raising odds of additional rate increases even as policymakers paused hikes in October. Treasury prices initially dropped after the data release but recovered most losses amid demand for bonds offering multi‑year‑high yields. The U.S. dollar weakened.
Elevated oil prices stemming from the Middle East conflict have kept U.S. inflation sticky, stoking expectations for more aggressive Fed tightening. At the same time, the powerful run‑up in AI‑linked stocks has weighed on equities, ending Wall Street’s longest period of calm since before the COVID‑19 pandemic.
U.S. Treasuries extended gains in Asian trading as stock‑market losses boosted demand for havens. The benchmark 10‑year yield fell six basis points to 5.12%, while the policy‑sensitive two‑year yield dropped seven basis points to 4.73%.
Gold rebounded after three straight days of declines, trading around $4,140 per ounce. Global crude benchmark Brent crude slipped 1.1% to $104.94 a barrel; high fuel costs were one driver behind September’s U.S. consumer‑price index inflation print.
Fed Chair Kevin Wash has pledged against steering markets with personal near‑term monetary‑policy outlooks. Still, the inflation surprise will heighten attention for his Thursday‑evening (New York time) remarks in Bangkok, where he will hold a fireside chat with IMF Managing Director Kristalina Georgieva.
Markets are now pricing roughly 40 basis points of additional Fed rate hikes by late January, and the probability of an October increase has been creeping higher.
Attention remains firmly on the tech sector after CoreWeave Inc. plummeted 17% on Wednesday. Its 2032‑maturity debt, bought at par by investors four months ago, now trades below 78 cents on the dollar.
Separately, people familiar with the matter said AI model maker Anthropic PBC told prospective investors it generated $16.8 billion in third‑quarter revenue and is moving forward with plans for a public listing.
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