Stocks slump as inflation fears overtake economic recovery hopes

Key Asian stock index drops by most since May as investors bet economic rebound could lead to tighter monetary policy.

Asian stocks fell by the most in nine months on Friday as a rout in global bond markets sent bond yields flying and spooked investors amid fears the heavy losses suffered could trigger distressed selling in other assets. In a sign that the gloomy mood will reverberate across markets, European and United States stock futures were a sea of red. Eurostoxx 50 futures lost 1.7 percent while futures for Germany’s DAX and those for London’s FTSE dropped 1.3 percent each. MSCI’s broadest index of Asia-Pacific shares outside Japan slid more than 3 percent to a one-month low, its steepest one-day percentage loss since May 2020.