Global stocks slipped and cryptocurrencies sank deeper on Wednesday as a threat of unwanted inflation had investors shy away from assets seen as vulnerable to any removal of monetary stimulus.
"The bitcoin flow picture continues to deteriorate and is pointing to continued retrenchment by institutional investors," JPMorgan analysts including Nikolaos Panigirtzoglou wrote in a research note. MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.6per cent, though Hong Kong and South Korea are closed for holidays. Japan's Nikkei lost 1.3per cent.
Investors remain cautious following an unexpected pickup in U.S. consumer inflation shown earlier this month. Ether, the second largest cryptocurrency, shed 28per cent, and is off more than 42per cent from record highs last week. It last changed hands at US$2,579. China will strengthen management from both supply and demand sides to curb"unreasonable" increases in commodity prices, and prevent the pass-through to the consumer, the cabinet said.