Asian stocks slide as inflation fears mount

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Asian equities follow Wall Street lower as China grapples with a power shortage that threatens to push up global energy prices

Tokyo — 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.

“Whether or not this is actually going to get embedded and create problems for years to come, we don’t need to know right now, it’s sufficiently scary that what we’re seeing in markets is justified.” Federal Reserve chair Jerome Powell said on Wednesday that resolving “tension” between high inflation and high unemployment is the Fed’s most urgent issue, acknowledging a potential conflict between the US central bank’s two goals of stable prices and full employment.

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