Asian investors continue global sell-off after US inflation data

Singapore Asian stocks fell after the latest US inflation report on Wednesday. Investors were spooked by the prospect of a sustained high rate of interest rate hikes by the US Federal Reserve. Analysts had expected inflation to ease more significantly. “Markets reacted sharply to what I consider to be a modest miss in the US Consumer Price Index (CPI).

Stocks and bonds have been manhandled and taken to the headmaster for a good old-fashioned spanking before he wakes up,” said Scott Rundell, chief investment officer at Mutual Limited. “With another 75 basis point rate hike more than priced in after the CPI report, there’s no reason why the Fed shouldn’t make another big move,” said Kevin Cummins, chief US economist at NatWest Markets.