ANL 31.35 Decreased By ▼ -0.20 (-0.63%)
ASC 20.90 Increased By ▲ 0.10 (0.48%)
ASL 23.90 Decreased By ▼ -0.10 (-0.42%)
BOP 8.41 Increased By ▲ 0.24 (2.94%)
BYCO 10.04 Decreased By ▼ -0.20 (-1.95%)
FCCL 22.20 Decreased By ▼ -0.40 (-1.77%)
FFBL 27.44 Increased By ▲ 0.24 (0.88%)
FFL 20.79 Decreased By ▼ -0.41 (-1.93%)
FNEL 8.85 Decreased By ▼ -0.33 (-3.59%)
GGGL 27.45 Decreased By ▼ -0.58 (-2.07%)
GGL 47.10 Increased By ▲ 0.35 (0.75%)
HUMNL 7.40 Decreased By ▼ -0.15 (-1.99%)
JSCL 22.50 Decreased By ▼ -0.43 (-1.88%)
KAPCO 39.80 Decreased By ▼ -0.30 (-0.75%)
KEL 3.92 Decreased By ▼ -0.02 (-0.51%)
MDTL 3.73 Decreased By ▼ -0.08 (-2.1%)
MLCF 44.27 Decreased By ▼ -0.83 (-1.84%)
NETSOL 165.95 Decreased By ▼ -1.40 (-0.84%)
PACE 7.67 Decreased By ▼ -0.36 (-4.48%)
PAEL 34.01 Decreased By ▼ -0.86 (-2.47%)
PIBTL 11.25 Decreased By ▼ -0.10 (-0.88%)
POWER 9.20 Decreased By ▼ -0.15 (-1.6%)
PRL 23.80 Decreased By ▼ -0.33 (-1.37%)
PTC 11.73 Decreased By ▼ -0.02 (-0.17%)
SILK 1.82 Decreased By ▼ -0.01 (-0.55%)
SNGP 49.60 Decreased By ▼ -1.58 (-3.09%)
TELE 15.06 Decreased By ▼ -0.51 (-3.28%)
TRG 166.20 Decreased By ▼ -1.86 (-1.11%)
UNITY 42.97 Decreased By ▼ -0.87 (-1.98%)
WTL 3.74 Decreased By ▼ -0.08 (-2.09%)
BR100 5,167 Decreased By ▼ -9.46 (-0.18%)
BR30 26,489 Decreased By ▼ -221.93 (-0.83%)
KSE100 47,687 Increased By ▲ 14.31 (0.03%)
KSE30 19,130 Increased By ▲ 22.74 (0.12%)

Coronavirus
VERY HIGH Source: covid.gov.pk
Pakistan Deaths
23,087
3924hr
Pakistan Cases
1,011,708
3,26224hr
6.6% positivity
Sindh
369,245
Punjab
353,695
Balochistan
29,681
Islamabad
85,947
KPK
142,139
Markets

Markets tumble in Asia as inflation fears haunt trading floors

  • "We're going to see volatility definitely over the next couple of months" given uncertainty over the path of growth, Kristen Bitterly, of Citi Private Bank, told Bloomberg TV.
11 May 2021

HONG KONG: Equity markets tumbled in Asian trade Tuesday following steep losses on Wall Street as investors grow increasingly worried about a surge in inflation that could force central banks to wind back their ultra-loose monetary policies earlier than forecast.

All eyes are on the release this week of crucial data on US retail sales and consumer prices, with expectations for a sharp rise as the world's top economy reopens and vaccines allow people to return to a sense of normality.

A massive miss on US jobs creation last week that indicated the recovery was not going to be as smooth as thought provided some relief from those fears but a rally in commodities -- particularly widely used copper and iron ore -- has markets concerned that costs will spiral.

Signs that this is having an effect were seen in data from China that showed prices paid at the country's factory gates rose last month at their fastest pace in four years.

Those worries continue to hover over trading floors, despite repeated assurances from the Federal Reserve that it will stick to its huge bond-buying and record-low interest rate position for as long as needed until it has unemployment tamed and inflation is running consistently hot.

While Fed bosses have said they see inflation coming in high for a few weeks owing to the low base of comparison from last year, a high reading would ramp up pressure on policymakers to make sure they do not let it get out of hand.

"Inflationary concerns will dominate the focus this week, but the base effects are widely priced in and this upcoming reading will likely only serve as a baseline," said OANDA strategist Edward Moya.

And there is a feeling that the issue will dog markets for some time, even as investors are confident the global economy is well on the recovery path.

"We're going to see volatility definitely over the next couple of months" given uncertainty over the path of growth, Kristen Bitterly, of Citi Private Bank, told Bloomberg TV.

Nervousness ahead of the US data sent traders rushing for the doors Monday. The Dow snapped a three-day streak of records and the S&P 500 lost more than one percent, while the Nasdaq shed 2.6 percent with tech firms considered vulnerable to higher borrowing costs.

And Asia followed the lead, with Tokyo and Taipei each dropping more than three percent, while Hong Kong was off more than two percent. Sydney and Seoul retreated more than one percent, and there were also losses in Shanghai, Singapore, Wellington, Manila, Mumbai, Bangkok and Jakarta.