Inflation anxiety jolts stocks, Asia tumbles to two-month lows

Inflation anxiety jolts stocks, Asia tumbles to two-month lows

SYDNEY - An extended sell-off drove Asian shares to their lowest in seven weeks on Wednesday as surging commodity prices and growing inflationary pressure in the United States prompted markets to bet on earlier rate hikes and higher bond yields globally. Futures pointed to a gloomy start for European and U.S. shares with those of Eurostoxx 50, Germany's Dax and London's FTSE all down 0.2% each. E-mini futures for the S&P 500 stumbled 0.4% while futures for the tech-heavy Nasdaq were down 0.6%. MSCI's broadest index of Asia-Pacific shares outside Japan slumped 1.5% to the lowest since March 26, adding to Tuesday's 1.6% loss with all major indices under heavy selling pressure. Analysts said a combination of inflation fears and some investors cutting their exposure to over-stretched stocks or sectors was behind the recent downturn. At 678 points, the regional index is not too far from a record high of 745.89 touched in February and is still up 3% this year so far, on top of a 19% jump in 2020 and a near 16% rise in 2019. Australian stocks slipped 0.9% while South Korea's KOSPI index skidded 1.4%. Japan's Nikkei reversed early gains to be down 1.5%. China's blue-chip