Asian markets dip on inflation worries

Friday, 05. March 2021 05:16

Major stock market indexes in Asia traded lower on Friday with investors beginning to anticipate short-lived inflation after the pandemic. With the rescue packages approved by global economies and the pent-up consumer demand which is expected to drive prices up, worries remain that the lack of policy adjustments could lead to halting the overall economic recovery from the health crisis.

The markets reacted to comments by Federal Reserve Bank Governor Jerome Powell who failed to reassure investors that the Fed would raise its interest rates sooner than expected, instead noting that the central bank will wait until maximum employment and the 2% inflation target are reached.

At 5:22 am CET, South Korea's Kospi lost 0.5%, with Hong Kong's Hang Seng down by 0.28% at 5:05 am CET. Japan's Nikkei 225 went down by 0.64% at 5:22 am CET, as the Australian S&P 200 dipped by 0.8%. The dollar traded 0.17% higher against the yen, going for ¥108.0695 at 5:23 am CET. In mainland China, the Shanghai Composite was 0.34% down at 04:30 am CET, with the Shenzhen Composite losing 0.11% at 05:16 am CET.

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