Stronger-than-anticipated U.S. inflation figures increased concerns about future hawkish Federal Reserve actions.

Stronger-than-anticipated U.S. inflation figures increased concerns about future hawkish Federal Reserve actions, which led to a decline in most Asian stock markets on Wednesday, with local technology firms taking the worst hit.

The fact that Apple increased its position and Berkshire Hathaway sold off a large portion of its equity in Taiwan Semiconductor Manufacturing put pressure on local technology firms.

Tech-heavy markets saw significant losses; the Hang Seng index in Hong Kong fell 1.3%, while the KOSPI in South Korea fell 1.2%.

Stronger U.S. consumer price index data for January, which indicated that inflation remained resilient despite a series of interest rate rises by the Fed, dampened sentiment towards risky assets.

The reading offers the Fed greater motivation to continue raising interest rates in the foreseeable future, which poses a risk of deterring foreign investment within markets.

To maintain pace with the Fed, regional central banks are also likely to raise interest rates, which will tighten the liquidity environment.

The likelihood of a U.S. recession this year has further increased by the threat of higher interest rates since increasing short-term yields reflect market concern over a downturn.

Official statistics revealed that British consumer price inflation dropped more than estimated from 10.5% in December to 10.1% in January, as well as declines in underlying inflation metrics that the Bank of England is closely monitoring.

The annual CPI rate was expected to fall to 10.3% in January, further weakening household living standards while remaining below the 41-year peak of 11.1% recorded in October, according to economists surveyed by Reuters.

The ONS has also said that the core CPI, which excludes items like energy, food, alcohol, and cigarettes, dropped from 6.3% in December to 5.8% in January.

Following the release of the statistics, the pound declined versus the dollar and the euro.

The Bank of England hinted earlier this month that it was about to cease its string of interest rate rises and that it saw indications that the rise in consumer prices had turned a corner.

Investors assume that the BoE will raise borrowing costs again next month, but the data released on Wednesday may enhance the perception that the Bank Rate is nearing its high.

Key developments today:

• US Core Retail Sales at 13:30 GMT.
• ECB President Lagarde Speak at 14:00 GMT.
• Crude Oil Inventories at 15:30 GMT.

(Investing.com, Reuters.com)