Asian Markets Plunge as US Inflation Spikes Tech Sell-off

Asian stock markets experienced a sharp downturn on Thursday, October 15, 2026, triggered by US consumer price index data showing a 3.7% year-on-year increase for September. The Federal Reserve System faces increased pressure to raise interest rates, with futures pricing a 31.6% probability of a 25-basis-point hike at its October 28 meeting.

South Korea's Kospi index plunged up to 8%, while Japan's Nikkei 225 tumbled 5%. The decline was driven by a deep sell-off in artificial intelligence and semiconductor stocks. Memory chipmakers SK Hynix and Kioxia saw shares plunge over 11%, while Samsung Electronics slid 9.7%. Other affected markets included Taiwan's Taiex, which dropped 3.4%, and Malaysia, which fell 5.2%.

Market volatility was intensified by surging US Treasury yields, fueled by rising government debt and an energy shock from the war in Iran. While Brent crude dipped slightly to $104.47 per barrel, the International Energy Agency warned that attacks on energy infrastructure in the Middle East, including a container ship sinking in the Strait of Hormuz and Houthi attacks in Saudi Arabia, threaten oil supply recovery. In Australia, the S&P/ASX 200 traded lower as the Australian Bureau of Statistics reported a September unemployment rate of 4.7%.

Investors are now awaiting third-quarter earnings from TSMC and speeches from Federal Reserve officials in Bangkok, including Chair Kevin Warsh, for further guidance.