Berliner Boersenzeitung - Asian markets track global sell-off on inflation, rate fears

EUR -
AED 4.015568
AFN 77.462602
ALL 100.23676
AMD 424.436429
ANG 1.969812
AOA 954.017417
ARS 1008.815402
AUD 1.621988
AWG 1.968416
AZN 1.86165
BAM 1.955282
BBD 2.206789
BDT 128.406009
BGN 1.954876
BHD 0.41207
BIF 3147.099456
BMD 1.093261
BND 1.46516
BOB 7.552279
BRL 5.947639
BSD 1.092996
BTN 91.316938
BWP 14.769049
BYN 3.576858
BYR 21427.907663
BZD 2.20309
CAD 1.494799
CDF 3104.860599
CHF 0.969329
CLF 0.036075
CLP 995.410813
CNY 7.936198
CNH 7.94833
COP 4350.00738
CRC 571.345437
CUC 1.093261
CUP 28.971406
CVE 110.254471
CZK 25.292581
DJF 194.594297
DKK 7.459563
DOP 64.493841
DZD 146.677282
EGP 52.705875
ERN 16.398909
ETB 62.771205
FJD 2.433871
FKP 0.842423
GBP 0.839028
GEL 2.968217
GGP 0.842423
GHS 16.853082
GIP 0.842423
GMD 74.095741
GNF 9413.508082
GTQ 8.474191
GYD 228.659797
HKD 8.535731
HNL 27.066835
HRK 7.55219
HTG 144.276222
HUF 391.338091
IDR 17631.06828
ILS 3.968727
IMP 0.842423
INR 91.355971
IQD 1431.763269
IRR 46026.271127
ISK 149.30625
JEP 0.842423
JMD 170.973672
JOD 0.774795
JPY 171.200279
KES 142.124422
KGS 92.881012
KHR 4488.571347
KMF 494.20844
KPW 983.934918
KRW 1507.890108
KWD 0.334035
KYD 0.91078
KZT 519.670372
LAK 24209.688007
LBP 97875.553014
LKR 332.002113
LRD 213.125748
LSL 19.882001
LTL 3.228114
LVL 0.661302
LYD 5.284495
MAD 10.743274
MDL 19.355443
MGA 4917.530382
MKD 61.61757
MMK 3550.867767
MNT 3771.749431
MOP 8.788639
MRU 43.262548
MUR 50.913229
MVR 16.832832
MWK 1895.149676
MXN 19.437405
MYR 5.09842
MZN 69.859342
NAD 19.882001
NGN 1765.441372
NIO 40.236158
NOK 11.760511
NPR 146.112046
NZD 1.79696
OMR 0.420867
PAB 1.092996
PEN 4.060512
PGK 4.279591
PHP 63.695524
PKR 304.422814
PLN 4.295164
PYG 8253.815073
QAR 3.987045
RON 4.968103
RSD 117.037884
RUB 96.371801
RWF 1431.210956
SAR 4.100477
SBD 9.246366
SCR 14.832327
SDG 657.049748
SEK 11.511668
SGD 1.465762
SHP 0.842423
SLE 24.978056
SLL 22925.132054
SOS 624.640348
SRD 32.463288
STD 22628.287033
SVC 9.561469
SYP 2746.850447
SZL 19.877102
THB 39.283591
TJS 11.639763
TMT 3.837345
TND 3.391702
TOP 2.58168
TRY 36.182875
TTD 7.419291
TWD 35.551191
TZS 2901.823052
UAH 45.33757
UGX 4043.61384
USD 1.093261
UYU 43.888382
UZS 13753.359249
VEF 3960393.939438
VES 39.875717
VND 27686.82457
VUV 129.794125
WST 3.065075
XAF 655.894363
XAG 0.035359
XAU 0.000443
XCD 2.954591
XDR 0.824421
XOF 655.894363
XPF 119.331742
YER 273.670464
ZAR 19.87209
ZMK 9840.662648
ZMW 28.499278
ZWL 352.029466
  • RBGPF

    0.0000

    56.9

    0%

  • CMSC

    0.0100

    24.42

    +0.04%

  • CMSD

    -0.0150

    24.555

    -0.06%

  • BCC

    10.5800

    136.8

    +7.73%

  • NGG

    0.1800

    60.99

    +0.3%

  • SCS

    0.2200

    13.75

    +1.6%

  • RIO

    -1.2300

    66.32

    -1.85%

  • RELX

    0.3200

    46.31

    +0.69%

  • BP

    -0.1400

    34.89

    -0.4%

  • RYCEF

    0.1100

    5.92

    +1.86%

  • GSK

    0.2300

    38.9

    +0.59%

  • BTI

    -0.0600

    32.14

    -0.19%

  • JRI

    0.0300

    12.6

    +0.24%

  • VOD

    0.0000

    9.03

    0%

  • BCE

    0.2500

    32.95

    +0.76%

  • AZN

    0.4700

    78.59

    +0.6%

Asian markets track global sell-off on inflation, rate fears
Asian markets track global sell-off on inflation, rate fears / Photo: GEORGE FREY - GETTY IMAGES NORTH AMERICA/AFP

Asian markets track global sell-off on inflation, rate fears

Asia extended losses across world markets on Friday after the European Central Bank laid the groundwork to join others in a programme of interest rate hikes, while attention turns to the release of key US inflation data.

Text size:

After a largely positive start to the week, investors tracked their US and European colleagues in selling up as they contemplate higher borrowing costs and surging prices, which many fear could lead to a recession.

Adding to the unease was news that officials in China had once again locked down millions of people to test them owing to another flare-up in cases, dealing a blow to hopes for an economic reopening.

Still, the move helped push down oil prices -- a key driver of global inflation -- owing to concerns about the impact on demand.

With prices rising at a decades-high pace, central banks have been forced to withdraw the vast financial support measures put in place to combat the impact of the pandemic and helped fuel a rally across markets to record or multi-year highs.

The ECB became the latest to join the tightening campaign, announcing Thursday the end of its bond-buying programme and signalling it will hike rates several times this year.

It also sharply upgraded its inflation forecasts for this year and next while lowering the economic growth outlook.

Focus now turns to the release of US consumer price figures later Friday, with a strong reading likely to give the Federal Reserve more room to be aggressive.

"A robust May... print will probably prompt (policymakers) to hint at a 50 basis point hike for the September meeting," said SPI Asset Management's Stephen Innes.

"The tone will remain hawkish and the tough talk on inflation will continue."

However, he added that "the significant upward revisions to core inflation projections are close to ending. Risk markets could take solace if one or two participants shift to seeing the inflation outlook is more balanced".

Expectations are that the Fed will hike by half a point for at least three more meetings before January.

Other commentators also suggested that traders were looking for signs inflation may be close to its highs.

"The big question is whether inflation has peaked or not," said Matthew Simpson of StoneX Financial.

"Inflation may have softened to a degree in April, but traders really want to see further evidence that inflation is pointing lower to call 'peak inflation' with confidence.

"Besides, one single month of data doesn’t define a trend."

And OANDA's Edward Moya said that the darkening outlook could provide an argument for the Fed to apply the brakes to hiking later in the year.

"Warning signs about the economy are emerging as weekly jobless claims are starting to rise, China's Covid situation will prove troublesome for supply chains over the next couple of quarters, and as inflationary pressures broaden and show no sign of easing.

"It seems reductions in global growth forecasts will become a steady theme over the next few months and that should complicate how much more tightening we see from central banks."

In early trade, Tokyo, Hong Kong, Sydney, Seoul, Singapore, Taipei, Wellington, Manila and Jakarta were all down.

However, data showing Chinese producer price inflation eased last month to its lowest level in a year provided some cheer to mainland traders with Shanghai edging up slightly.

On currency markets the euro continued to struggle against the dollar after the ECB flagged a quarter-point hike, while the yen remained around two-decade lows on the greenback.

- Key figures at around 0230 GMT -

Tokyo - Nikkei 225: DOWN 1.4 percent at 27,848.79 (break)

Hong Kong - Hang Seng Index: DOWN 0.7 percent at 21,726.41

Shanghai - Composite: UP 0.3 percent at 3,248.75

Euro/dollar: UP at $1.0626 from $1.0620 late Thursday

Euro/pound: UP at 85.05 pence from 84.98 pence

Dollar/yen: DOWN at 134.03 yen from 134.40 yen

Pound/dollar: DOWN at $1.2493 from $1.2495

Brent North Sea crude: DOWN 0.8 percent at $122.10 per barrel

West Texas Intermediate: DOWN 0.8 percent at $120.60 per barrel

New York - Dow: DOWN 1.9 percent at 32,272.79 (close)

London - FTSE 100: DOWN 1.5 percent at 7,476.21 (close)

(A.Lehmann--BBZ)