Connor Bedard - toe drag release | SaltWireTOKYO - Asian stocks sank on Thursday, extending global equity declines after new signs of sustained inflationary pressures in the United States boosted the case for elevated interest rates for longer.
Japan's Nikkei sagged a milder 0.2%, although that put it at risk of snapping an eight-session win streak.Wall Street stocks sold off after U.S. data showed the services sector unexpectedly picked up steam in August, suggesting stubborn inflationary forces. "It all goes back to the discussion of where that magical neutral rate happens to be," he said."While the markets are still feeling around for where that rate may be, it's going to weigh on equities and support the U.S. dollar."
Elsewhere, the People's Bank of China continued its bid to shore up the yuan by again setting strong official midpoints for the currency.
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Asia stocks slide on U.S. rate worries, dollar ascendantAsian stocks sank on Thursday, extending global equity declines after new signs of sustained inflationary pressures in the United States boosted the case for elevated interest rates for longer. The U.S. dollar hung close to the highest since mid-March against major peers, and touched a fresh 10-month top to the yen.
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