Asian markets hurt by fears over inflation, Fed and US defaultA pedestrian wearing a face mask walks past an electronic board displaying closing numbers of share prices of Tokyo EStock Exchange in Tokyo on November 9, 2020, as Asian markets react to results of the US presidential election. HONG KONG, China — Asian markets mostly fell Wednesday following a rout on Wall Street as investors fret over surging inflation, the end of the Federal Reserve's financial support and a standoff in Washington that could end with a catastrophic US debt default. The news was initially taken in stride, but a surge in Treasury yields this week has sparked panic that the Fed could tighten much earlier and quicker than initially thought as inflation takes off. This has led to talk of a possible period of damaging "stagflation", where inflation surges but economic growth remains subdued. "The Fed was willing to tolerate a little inflation overshoot, but the current energy crunch could force a major pivot before the end of the year."

Source: Philippine Star September 29, 2021 03:00 UTC