Asian markets experienced a tumultuous day of trading on Tuesday, with investors on edge ahead of a key U.S. inflation update.
The Nikkei 225 in Japan fell 0.7%, while the Hang Seng in Hong Kong dropped 1.2%. The Shanghai Composite in China was down 0.2%, and the Kospi in South Korea fell 0.3%.
The yen remained volatile following a report of a potential nomination to the Bank of Japan’s board of directors. The dollar was up against the yen, trading at 108.62.
The sell-off in Asia followed a slump on Wall Street, where the S&P 500 and Nasdaq both fell 2.4%.
The markets were looking ahead to the release of U.S. inflation data later in the day. Investors were wary of the potential for higher-than-expected inflation, which could lead to higher interest rates and a stronger dollar.
In China, stocks outperformed the region despite the inflation uncertainty, with the Shanghai Composite closing up 0.2%.
Overall, the Asian markets were down ahead of the U.S. inflation update, with investors looking to the data for clues on the future direction of the markets.