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Asian shares sink after inflation-driven retreat on Wall St

Asian shares sink after inflation-driven retreat on Wall St

BANGKOK (AP) — Shares sank in Asia on Monday after a report that U.S. inflation worsened last month sent stocks reeling on Wall Street. Major…

Monday, Jun 13

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BANGKOK (AP) — Shares sank in Asia on Monday after a report that U.S. inflation worsened last month sent stocks reeling on Wall Street.

Major regional markets dropped more than 2% in early trading Monday, while U.S. futures slipped more than 1%. On Friday, the S&P 500 sank 2.9%, locking in its ninth losing week in the last 10.

Investors had hoped the highly anticipated consumer price report would show the worst inflation in generations had slowed a touch last month, passing its peak. Instead, the U.S. government said inflation accelerated to 8.6% in May from 8.3% the month before.

Investors took Friday’s report to suggest the Federal Reserve will persist in raising interest rates and making other moves in order to slow the economy, to try to force down inflation.

Tokyo’s Nikkei 225 index lost 2.6% to 27,018.01 and the Hang Seng in Hong Kong skidded 3% to 21,145.27. In South Korea, the Kospi declined 3.18% to 2,516.95 as a truckers strike raised concern over supply chain disruptions. The Shanghai Composite index dropped 1% to 3,253.04.

Thailand’s benchmark fell 1.4%, and markets in Australia were closed for a holiday.

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