Inflation and energy crunch worries pull down Asian bourses

Inflation and energy crunch worries pull down Asian bourses

AFP/Hong Kong

Asian markets retreated on Tuesday as investors grew increasingly concerned about a brewing energy crisis, spiking inflation, signs of a slowdown in the global economy and an end to central bank financial support.

China’s ongoing crackdown on the private sector and the debt woes of the country’s property giant Evergrande were also acting as a dampener on sentiment.

World markets have come under pressure in recent weeks as the reopening of economies and supply chain snarls ramp up inflation, with a rally in commodity prices a major factor.

All eyes are on the release this week of inflation data in the United States and China, with expectations for multi-high readings that will add pressure on central banks to tighten monetary policy.

The Federal Reserve has already signalled it will begin tapering its vast bond-buying programme by the end of the year as it looks to prevent prices from running out of control and the economy overheating.

While the move has been widely expected for some time, consistently high inflation is increasing the likelihood that interest rates will rise as early as next year.

The Bank of England appears close to lifting borrowing costs sooner than later, while New Zealand and South Korea