Asian stocks slide as US inflation data fuels rate hike fears

Stocks in mainland China and Hong Kong fell on Thursday, with the benchmark CSI 300 Index dropping 1.2 percent to 4,166.01, its lowest level since August 12, 2025. The decline was driven by recent US inflation figures that increased expectations for Federal Reserve interest rate hikes, alongside a sharp drop in South Korean markets that weighed on regional sentiment.

The Hang Seng Index in Hong Kong fell 1 percent to 24,062.72, while the Hang Seng Tech Index sank 2.7 percent. In mainland China, the chip-heavy Star Market 50 gauge tumbled 1.5 percent to a six-month low, reflecting broader concerns about technology sector valuations.

South Korea’s Kospi index, a key indicator for the artificial intelligence trade, plunged more than 7 percent. The slide was driven by heavyweights Samsung Electronics and SK Hynix as investors reacted to news that China’s ChangXin Memory Technologies plans to launch a high-density storage product by the end of the year, challenging the Korean firms' market dominance.

Read the full story at scmp.com.