Asian Tech Rout Deepens as US Inflation Jolts Markets

Asian tech stocks plunged, with South Korea's Kospi down 7.5% and Japan's Nikkei down 4.6%, dragging European markets lower after Wall Street losses. Higher-than-expected US inflation fueled the selloff, raising fears of Federal Reserve rate hikes and questioning the sustainability of AI investments. US inflation data exceeded forecasts, intensifying pressure on the Fed to tighten policy. Treasury yields spiked, with the 10-year note at 5.10% after briefly topping 5.32%, while oil prices fell but stayed elevated, with Brent at $104.4 a barrel amid Middle East tensions. In Milan, bank merger activity is under watch, including UniCredit's expected ECB approval for Commerz, while tech stocks face scrutiny after the Asian correction. Brunello Cucinelli reports earnings, and Campari may be affected by Pernod Ricard's latest data.