Global markets fall after rough week on Wall Street; yen hits two-decade-low

The Dow (INDU) plunged 880 points, or 2.5%, on Friday. The S&P 500 (SPX) shed 2.7% and the Nasdaq (NDX) dropped about 3%. The US consumer price index rose by 8.6% in May, raising fears that the Federal Reserve will have to act even more aggressively to try to tame price rises.

The shockwaves were felt most acutely in Asia on Monday. Japan’s Nikkei (N225) closed down 3%, and the yen weakened to the lowest level in more than 20 years. The Japanese currency has declined rapidly in recent months because of a strong greenback and ultra-loose Japanese monetary policy.

In the US, Dow futures were down 1.9% at 5.20 am ET. S&P 500 futures were down around 2.3%, while Nasdaq futures were down about 2.9%.

“The hangover from Friday’s US CPI data isn’t helped by concern about China walking back some of its economic reopening, or more dire economic data in the UK,” Societe Generale strategist Kit Juckes said in a research note.

A number of neighborhoods in Shanghai faced another temporary lockdown at the weekend, as authorities launched mass testing just days after Covid restrictions were eased for most of its 25 million residents.

Authorities in Beijing’s largest Chaoyang district announced Thursday the closure of all entertainment venues, just days after allowing their reopening.

— CNN’s Nicole Goodkind contributed to this report