BEIJING — Global stocks and Wall Street futures sank Tuesday as investors waited for U.S. inflation data amid unease about higher interest rates, Chinese efforts to contain coronavirus outbreaks and Russia’s war on Ukraine.
Markets are uneasy about plans by the Federal Reserve and other central banks to try to cool inflation by rolling back ultra-low interest rates. Adding to their anxiety are Russia’s attack on Ukraine and China’s decision to shut down most businesses in Shanghai, its commercial capital, to fight coronavirus outbreaks.
The Hang Seng in Hong Kong climbed 0.5% to 21,319.13 while the Nikkei 225 in Tokyo shed 1.8% to 26,334.98.India’s Sensex declined 0.5% to 58,685.08. Jakarta advanced while New Zealand and other Southeast Asian markets declined.Investors worry inflation might be strong enough to encourage consumers to cut spending, which would likely mean a sharper slowdown in economic growth than expected.
Oil prices have fallen back on expectations of weaker Chinese demand after most businesses in Shanghai were shut down and controls imposed on other industrial centers to contain coronavirus outbreaks. Prices spiked above $130 per barrel last month on anxiety about possible disruption in Russian supplies.