Most Asian markets end lower on Wall Street rout, inflation worries

Most Asian markets end lower on Wall Street rout, inflation worries

AFP / Hong Kong

Asian equities mostly sank on Tuesday and oil prices tumbled following a rout on Wall Street as anxieties were fanned over rising US interest rates, surging inflation and the impact of China’s prolonged Covid lockdowns.

Stock markets have been on a tempestuous ride this year, with Wall Street suffering another hit on Monday as the tech-rich Nasdaq slumped more than 4%, while the S&P 500 ended below 4,000 points for the first time since March 2021.

Steep declines in China’s April exports — due to Beijing’s staunch adherence to a zero-Covid policy that has placed millions under lockdown — and volatility in crude partly due to Russia’s war in Ukraine have also hastened selling.

“This rather precipitous drop in equity markets has been building for several months,” said Clifford Bennett, chief economist at ACY Securities.

“The fundamentals of war, inflation, rate hikes and supply-chain disruption are all individually significant headwinds.

When combined, equity markets have no way through.”

US stock markets took a dive late last week after the Federal Reserve raised interest rates by a half-percentage point and flagged more aggressive hikes ahead to tackle decades-high inflation.

Stoking global inflationary pressures are lockdowns in dozens of locations across China —