Stocks in Asia tumble, Japan's Nikkei 225 loses nearly 800 points

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SYDNEY, NSW, Australia – Stocks in Asia plummeted on Wednesday, mirroring falls registered in the U.S., Europe and the UK overnight.

A significant and unexpected rise in the U.S. CPI, as reported by the Labor Department on Tuesday has brought global stock markets to their knees following an extended rally.

“We now expect the FOMC to increase the Fed Funds rate by 75 basis points (with risk of 100bp) when they meet next week,” Commsec said Wednesday. “This is expected to be followed by 50bp rate hikes in November and December, to a peak of 4 percent to 4.25 percent.”

On Wednesday, the Nikkei 225 in Japan tumbled 796.01 points or 2.78 percent to 27,818.62.

The Australian All Ordinaries dived 180.20 points or 2.48 percent to 7,073.50.

In New Zealand, the S&P/NZX 50 fell 104.11 points or 0.89 percent to 11,658.05.

South Korea’s Kospi Composite eased 42.00 points or 1.71 percent to 2,407.54.

In Hong Kong, the Hang Seng was still trading at the time of writing, down 465 points. China’s Shanghai Composite was off 25 points.

The U.S. dollar was mixed on Asian markets but still robust given its overnight sharp move higher. The euro was struggling at 0.9962 around the Sydney close Wednesday. The British pound edged down to 1.1484. The Japanese yen was a fraction higher at 143.61. The Swiss franc was largely unchanged at 0.9621.

The Canadian dollar eased to 1.3185. The Australian dollar weakened to 0.6715. The New Zealand dollar dropped to 0.5988.

Overnight on Wall Street, the Dow Jones industrials buckled by 1,276.37 points or 3.94 percent to 31,104.97.

The Nasdaq Composite shed 632.84 points or 5.16 percent to 11,633.57.

The Standard and Poor’s 500 dived 177.72 points or 4.32 percent to 3,932.69.

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