Asian stocks plunge as US inflation surprise and Hormuz closure stoke rate-hike fears

Asian equities tumbled on Thursday, with the Nikkei down 4.5% and Kospi over 8%, driven by a selloff in tech stocks. The drop follows a higher-than-expected US September inflation print of 3.7%, attributed partly to energy costs after Iran closed the Strait of Hormuz, raising market expectations of another Fed rate hike in October. The confluence of an inflation surprise and a major chokepoint disruption marks a sharp risk-off shift, though the sustainability of the selloff depends on whether the Hormuz closure persists and how the Fed responds.