{"id":122172,"date":"2021-10-01T03:42:03","date_gmt":"2021-10-01T03:42:03","guid":{"rendered":"https:\/\/fin2me.com\/?p=122172"},"modified":"2021-10-01T03:42:03","modified_gmt":"2021-10-01T03:42:03","slug":"asian-stocks-extend-global-slide-as-inflation-fears-bite","status":"publish","type":"post","link":"https:\/\/fin2me.com\/business\/asian-stocks-extend-global-slide-as-inflation-fears-bite\/","title":{"rendered":"Asian stocks extend global slide as inflation fears bite"},"content":{"rendered":"
TOKYO (Reuters) – Asian equities followed Wall Street sharply lower and bonds rallied on Friday as risk sentiment soured amid growing worries that inflation may persist even after global growth has peaked.<\/p> Japan\u2019s Nikkei tumbled 1.86%, while the broader Topix slid 1.95%.<\/p>\n Australian stocks slumped 2.05% and South Korea\u2019s Kospi lost 1.51%.<\/p>\n An MSCI index of Asia-Pacific stocks dropped 1.07%.<\/p>\n Chinese markets are closed for a week from Friday for the Golden Week holiday.<\/p>\n \u201cYou can argue whether it\u2019s really stagflation or not, but the whole growth-inflation backdrop seems to have just tilted to a less favorable one,\u201d said Rob Carnell, Asia-Pacific head of research at ING in Singapore.<\/p>\n \u201cWhether or not this is actually going to get imbedded and create problems for years to come, we don\u2019t need to know right now – it\u2019s sufficiently scary that what we\u2019re seeing in markets is justified.\u201d<\/p>\n U.S. stock futures pointed to a 0.51% decline for the S&P 500, following a 1.19% drop in the index overnight.<\/p>\n Nasdaq futures also signaled a 0.49% retreat, adding to Thursday\u2019s 0.43% loss.<\/p>\n The benchmark 10-year Treasury note continued to rally in Tokyo trading, with the yield sliding to the lowest since Sept. 28 at 1.48%.<\/p>\n The dollar index, which measures the currency against six major rivals, was off Thursday\u2019s one-year high of 94.504, last changing hands at 94.326.<\/p>\n Federal Reserve Chair Jerome Powell said on Wednesday that resolving \u201ctension\u201d between high inflation and high unemployment is the Fed\u2019s most urgent issue, acknowledging a potential conflict between the U.S. central bank\u2019s two goals of stable prices and full employment.<\/p>\n China has proved a particular worry for investors, hit by regulatory curbs in the tech and property sectors, and now grappling with a power shortage that threatens to push up energy prices globally.<\/p>\n Crude prices continued to ease on Friday after Brent topped $80 a barrel earlier in the week for the first time in three years.<\/p>\n Brent crude futures were largely flat compared to Thursday at $78.32, while U.S. crude futures were also little changed at $75.07.<\/p>\n Gold, an inflation hedge and safe haven, edged back 0.1% to $1,755.35 an ounce, following Thursday\u2019s 1.77% surge, the biggest since March.<\/p>\n