Z.AI HK SDR 100to1

Hot September CPI data underscores sticky inflation, driving rate hike odds higher and triggering short-term yield spikes. High-multiple tech names face knee-jerk valuation compression, yet secular AI tailwinds remain intact—making selective dip-buying in oversold, high-conviction infrastructure leaders a compelling risk-reward play.

It's a rough day for the market today where Korea, Japan and Taiwan experienced severe correction. With the CPI came in hotter than expected, market bumped up the expectations on fed tightening and rate hikes. As the market has repeatedly been questioning the ROI of AI capex of late, the CPI figures meant higher discount rates to reduce the present value assigned to future earnings and it became a trigger or excuse for the sell down which could jolly well be an excuse to take profits and par down risks.

October Hike odds are back on as CPI came in hotter than expected and the markets certainly did not like that. Almost every major market started selling off last night and today, causing further pain for those holding stocks on the optical sector that has already been facing downwards pressure.