Asian shares fell the most in over a year on Monday as fears of resurgent inflation battered bonds, toppled Wall Street from record highs and sparked speculation that central banks globally might be forced to tighten policy more aggressively. MSCI’s broadest index of Asia-Pacific shares outside Japan shed 1.8% in the largest daily drop since late 2016. Investors were spooked by Friday’s U.S. payrolls report which showed wages growing at their fastest pace in more than 8-1/2 years and fuelling inflation expectations. Futures markets reacted by pricing in the risk of three, or even more, interest rate rises from the Federal Reserve this year. In oil markets, U.S. crude fell 74 cents to $64.71 a barrel, while Brent lost 80 cents to $67.78.

Source: Hindustan Times February 05, 2018 05:15 UTC