Korea falls 7% and Japan 3.9%: U.S. inflation hits Asia
WHAT HAPPENED
U.S. inflation rose to 3.7% annual in September, more than expected. Korea fell 7.1% and Japan 3.9%; Samsung lost 8.2% and SK Hynix, 10.8%.
WHY IT MATTERS
High inflation reduces the likelihood that the Fed will lower rates soon. This makes debt for building data centers and chip factories more expensive, and first hits technology, artificial intelligence, and their suppliers.
AND FOR YOUR PORTFOLIO
If your retirement fund, pension fund, or investment fund has global technology stocks, the drop may appear in your account statement. It does not imply that the money has disappeared: it reflects that the market is re-evaluating how much the bets on AI can yield.
💬 TELL IT LIKE THIS
“When inflation keeps rates high, the bet on artificial intelligence becomes more expensive and chip stocks feel it first.”