Asian stocks slump amid risks from US CPI, China COVID struggle

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TOKYO : Asian stocks sank on Monday and bond yields ticked higher, as red-hot U.S. inflation reignited worries about even more aggressive Federal Reserve policy tightening, and a COVID-19 warning from Beijing added to concerns about global growth.Chinese blue chips dropped 0.84 per cent, and Hong Kong's H

TOKYO : Asian stocks sank on Monday and bond yields ticked higher, as red-hot U.S. inflation reignited worries about even more aggressive Federal Reserve policy tightening, and a COVID-19 warning from Beijing added to concerns about global growth.Japan's Nikkei slumped 2.78 per cent, and South Korea's Kospi declined 2.78 per cent.U.S. stock futures pointed to further losses at the reopen, with the S&P 500 indicating 1.54 per cent lower, after Friday's 2.91 per cent retreat.

Meanwhile, the U.S. consumer price index increased a bigger-than-expected 8.6 per cent last month, the largest year-on-year increase since December 1981, Labor Department figures showed Friday. "Inflation isn't peaking, it isn't even plateauing. It is still accelerating, and it will likely do so in June" as well, the note said.

 

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