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May 13, 2021, 12:21 a.m. EDT

Asian markets follow Wall Street lower as inflation worries mount

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By Associated Press

BEIJING — Asian stock markets followed Wall Street lower for a second day Thursday after unexpectedly strong U.S. consumer price increases fueled worries inflation might drag on an economic recovery.

The Shanghai Composite Index /zigman2/quotes/210598127/delayed CN:SHCOMP +0.21% fell 0.7% and the Nikkei 225 /zigman2/quotes/210597971/delayed JP:NIK -0.93% in Tokyo tumbled 1.7%. The Hang Seng /zigman2/quotes/210598030/delayed HK:HSI +0.43% in Hong Kong lost 0.9%.

The Kospi /zigman2/quotes/210598069/delayed KR:180721 -0.42% in Seoul sank 0.7% and Sydney’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO -0.37% was 0.7% lower. Stocks fell in New Zealand /zigman2/quotes/211587880/delayed NZ:NZ50GR -0.32% and Taiwan /zigman2/quotes/210597977/delayed TW:Y9999 +0.48% . Markets in Singapore, Malaysia and Indonesia were closed for holidays.

Overnight, Wall Street’s benchmark S&P 500 index recorded its biggest one-day drop since February after consumer prices rose in April at their fastest year-on-year pace since 2008.

Rising prices reflect growing industrial and consumer activity after last year’s global shutdown to fight the coronavirus pandemic. But investors worry surging inflation might disrupt the recovery or prompt central banks to withdraw stimulus and near-zero interest rates.

The market reaction was “mild, reflecting the belief that this jump in inflation will eventually calm,” Tai Hui of JP Morgan Asset Management said in a report.

The Federal Reserve says this surge should be temporary, but “if inflation does not calm,” the challenge to the U.S. central bank’s credibility “could be disruptive,” Hui said.

On Wall Street, the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.16% lost 2.1% to 4,063.04. The Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.41% lost 2% to 33,587.66 in its biggest decline since January. The Nasdaq /zigman2/quotes/210598365/realtime COMP +1.07% gave up 2.7% in its largest pullback since March.

Bond yields, or the difference between market price and the payout at maturity, snapped higher as prices fell. Bond prices fall if investors worry the value of that payout will be eroded by higher inflation.

The yield on the 10-year Treasury note rose to 1.69% from Tuesday’s 1.62%, a big move.

In energy markets, benchmark U.S. crude fell 46 cents to $65.62 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 80 cents on Wednesday to $66.08. Brent crude , used to price international oils, sank 53 cents to $68.79 per barrel in London. It rose 77 cents the previous session to $69.32 a barrel.

The dollar /zigman2/quotes/210561789/realtime/sampled USDJPY -0.3803% gained to 109.67 yen from Wednesday’s 109.60 yen.

/zigman2/quotes/210598127/delayed
CN : China: Shanghai
3,525.60
+7.28 +0.21%
Volume: 27.72B
June 17, 2021 3:01p
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/zigman2/quotes/210597971/delayed
JP : Nikkei
29,018.33
-272.68 -0.93%
Volume: 0.00
June 17, 2021 3:15p
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/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
28,558.59
+121.75 +0.43%
Volume: 1.89M
June 17, 2021 4:08p
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/zigman2/quotes/210598069/delayed
KR : Korea Exchange
3,264.96
-13.72 -0.42%
Volume: 1.85M
June 17, 2021 3:30p
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/zigman2/quotes/210598100/delayed
AU : S&P ASX
7,359.00
-27.20 -0.37%
Volume: 772,069
June 17, 2021 5:16p
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/zigman2/quotes/211587880/delayed
NZ : New Zealand: NZX
12,541.20
-40.40 -0.32%
Volume: 0.00
June 17, 2021 5:00p
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/zigman2/quotes/210597977/delayed
TW : Taiwan Stock Exchange
17,390.61
+82.75 +0.48%
Volume: 0.00
June 17, 2021 1:33p
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/zigman2/quotes/210599714/realtime
US : S&P US
4,230.64
+6.94 +0.16%
Volume: 2.01B
June 17, 2021 3:47p
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/zigman2/quotes/210598065/realtime
US : Dow Jones Global
33,893.11
-140.56 -0.41%
Volume: 272.68M
June 17, 2021 3:47p
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/zigman2/quotes/210598365/realtime
US : Nasdaq
14,189.59
+149.90 +1.07%
Volume: 3.43M
June 17, 2021 3:47p
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/zigman2/quotes/210561789/realtime/sampled
US : Tullett Prebon
110.2940
-0.4210 -0.3803%
Volume: 0.0000
June 17, 2021 3:47p
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