Asian markets slip as inflation, default compound virus worries
Asian markets resumed their retreat Wednesday as a strong lead from Wall Street was overshadowed by ongoing worries about a range of issues from rising inflation, tighter monetary policy, a possible US debt default and the ever-present threat of the Delta variant.
The rally enjoyed across equities for more than a year has met a roadblock in recent months as supply chain problems and a surge in energy prices caused by a recovery in demand has led to a sustained spike in inflation.
That has put increasing pressure on central banks around the world to wind in the ultra-loose monetary policies put in place last year to battle the impact of the pandemic and which have been key to the rebound in the global economy as well as markets.
And investors are not happy, with some now warning that continuously high prices combined with signs that global growth is slowing could lead to a period of…