Asian markets down over Fed signal, China tech crackdown

Asian markets down over Fed signal, China tech crackdown

HONG KONG: Asian markets were broadly down yesterday after the Fed signalled a possible inflation-induced policy change, while concerns lingered over China's crackdown on tech giants. The Federal Reserve said Wednesday that while rising prices were expected as the US economy recovered from the pandemic, the inflation jump was higher than expected.

Officials said the US central bank needs to be ready to pull back on its massive support programme if this persists, according to minutes from a June policy meeting. But it gave no indication that a reversal was imminent "” a stance consistent with commentary from Fed chair Jay Powell that did not jolt the market.

US markets appeared ready to set aside inflation fears "” at least for the time being "” with Wall Street finishing modestly higher as both the S&P 500 and Nasdaq edged to records. "It took some time, but the Fed has finally acknowledged rising inflationary forces," Louis Navellier, chairman of Navellier & Associates, said in a note to investors on Wednesday.

The strong overnight lead from Wall Street provided some boost in Asia, but Tokyo closed down Thursday as the Japanese government was set to impose a new virus state of emergency to fight a