Asian share markets followed Wall Street into the red on Wednesday as surprising strength in global surveys of services stoked fears that central banks would have to lift interest rates yet further and keep them up for longer.
MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) fell 0.97%, after Wall Street posted its worst performance of the year on Tuesday, with an unexpectedly strong reading of S&P Global’s composite purchasing managers’ index (PMI) showing the U.S. economy was not cooling yet.
“The flow of economic data surprises has continued overnight and this time it was a uniformly stronger than expected performance of the services sector across major developed market economies,” National Australia Bank analysts wrote in a client note.
“It concerns the market that central banks will have to hike rates a lot more to curb inflation,” said Kerry Craig, JPMorgan Asset Management’s global market strategist.
This report’s information was first seen on REUTERS; to read more, click this link.
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